Following the U.S. decision to impose a 50% tariff on $27.6 billion of Canadian goods, the Government of Canada announced matching counter-tariffs alongside a new $7.5 billion package of support for Canadian workers and businesses.
For businesses, the significance of this announcement isn’t just the amount of new funding available. It is the expansion of what tariff-related support can actually address.
Until now, programs such as the Regional Tariff Response Initiative (RTRI) have largely focused on longer-term projects that help businesses adapt to trade disruption – investing in productivity, diversifying markets, strengthening supply chains and building new capabilities.
Those opportunities remain, and are receiving significant new funding. But the latest announcements also introduces more immediate financial pressures.
Businesses will now have access to new liquidity and immediate cash-flow supports, while more funding is also being directed toward the longer-term investments needed to adapt to a changing trade environment.
In other words, the funding conversation is becoming broader: What support does your business need today, and what investments will make it more resilient tomorrow?
Today: New Support for Immediate Liquidity
Regional Tariff Response Initiative (RTRI)
Effective September 2026, the government is investing an additional $1.5 billion in RTRI, bringing the initiative to $3.45 billion over four years.
Importantly, the program is expanding beyond its existing focus on pivot and capital investment projects to include demonstrated liquidity needs. Eligible tariff-affected businesses will be able to access up to $2 million in liquidity support through Canada’s Regional Development Agencies.
This represents a significant change from the original focus of RTRI. Businesses will now have the potential to access the program not only to support longer-term adaptation projects, but also to address more immediate tariff-related financial needs.
departure from the original focus of RTRI, which required businesses to bring forward a project or plan to pivot their operations through areas such as productivity, market diversification or supply-chain resilience.
A new $500 million liquidity stream will be introduced through BDC’s Pivot to Grow program, providing working capital to businesses experiencing tariff-related cash-flow shortfalls.
Loans will range from $250,000 to $5 million, with interest-only payments available for 36 months. The new stream will be available across sectors to companies directly impacted by tariffs, with a simplified application process.
Access to BDC’s tariff programs is also being broaded, with the minimum annual revenue threshold reduced to $1 million.
For businesses experiencing immediate tariff-related financial pressure, these changes create options that weren’t available through the initial tariff-response programs.
Today: Support for Retaining and Retraining Workers
Immediate support is also being expanded beyond liquidity.
The government announced $2.5 billion in Rapid Response Supports for Workers and Employers, including the introduction of a new Workforce Retention and Retraining Program.
The new program will combine the existing EI Work-Sharing program and Worker Retention Grant into a single offering. It will also provide employers with up to $1,000 per participant to support training and administrative costs.
For businesses adjusting their operations in response to tariffs, this adds another potential layer of support, particularly where retaining or retraining employees is part of the immediate response.
Tomorrow: More Funding for Longer-Term Investment
While immediate support is a major part of the latest announcement, the government is also significantly increasing the funding available for businesses looking further ahead.
Regional Tariff Response Initiative (RTRI)
RTRI will continue to support projects designed to improve productivity, diversify markets, strengthen supply chains and adapt to changing trade conditions.
At the same time, the maximum non-repayable contribution available through RTRI will increase from $1 million to $3 million, substantially increasing the program’s potential value for businesses undertaking larger projects.
Canada Strong Diversification Fund
The government is also introducing the new $2 billion Canada Strong Diversification Fund, effective immediately.
Delivered as a new stream of the Strategic Response Fund, the program will support tariff-impacted businesses with shovel-ready projects and provide greater flexibility to support ongoing capital maintenance and medium-sized businesses.
The government has also indicated that a fast-track, one-step review and approval process will be introduced, with Regional Development Agencies supporting project intake and triage.
Together, these changes create substantially more capacity to support businesses making significant investments in response to the changing trade environment.
What Does “More Resilient Tomorrow” Look Like?
For businesses looking beyond immediate liquidity, the most useful question may not be:
“What tariff funding can we access?”
Instead, consider:
“If the current trade environment persisted for the next three years, what would we change about our business?”
That answer will look different for every company.
It could mean investing in automation or new equipment to improve productivity. It could mean bringing previously outsourced production in-house, increasing Canadian production capacity, developing alternative supply chains, entering new markets or developing new products.
These types of investments can turn a response to tariffs into a defined capital investment, productivity, innovation or diversification project.
And that’s important because the funding opportunity may extend well beyond programs specifically branded as tariff support.
Think Beyond “Tariff Funding”
A larger project developed in response to trade disruption could potentially align with several areas of Canada’s government funding ecosystem.
A manufacturer investing in new equipment and automation, for example, may have a strong fit with RTRI or other Regional Development Agency funding.
If that investment also requires employees to develop new skills, workforce training programs may support another portion of the project.
If the company is diversifying away from the U.S., export and market development programs may become relevant.
And if new products or manufacturing processes require experimental development to overcome technological uncertainty, some of that work may potentially qualify for SR&ED tax credits.
The goal shouldn’t be to find a tariff program and design a project around it.
Instead, businesses should identify what they need to do next, then look across the funding landscape to determine which programs can help move those plans forward.
The Bottom Line
This week’s announcement creates two distinct opportunities for tariff-affected businesses.
For companies dealing with an immediate financial need, new liquidity support through RTRI and BDC could provide a more direct response than the project-based funding previously available.
For companies considering longer-term changes to their operations, the pool of funding available for productivity, capital investment, diversification and supply-chain resilience is also becoming substantially larger.
And for some businesses, both conversations may be relevant at the same time.
A company could have an immediate need for liquidity while also planning a larger capital investment that reduces its exposure to future trade disruption. Those are different needs, but the federal funding landscape is increasingly being structured to address both.
For businesses reviewing their options, that creates two questions worth asking:
What support do we need to manage the impact today?
And:
What investments should we be making to strengthen the business for tomorrow?
Not Sure Where Your Business Fits?
With new support available for both immediate liquidity needs and longer-term investments, now is a good time to take another look at your funding strategy.
If your business is being impacted by tariffs, or you’re considering investments to strengthen your operations, diversify your markets or reduce future exposure, reach out to our team. We can help you understand which funding and financing options may be relevant and how they could fit into your broader plans.
