The Government of Canada announced a new $1.5 billion tariff support package aimed at helping companies affected by US tariffs on products containing steel, aluminum and copper. The package includes a new $1 billion Business Development Bank of Canada financing program and an additional $500 million for the Regional Tariff Response Initiative as Canada seeks to strengthen industrial resilience and support businesses facing tariff pressures.
Funding to address immediate pressures and future transformation
New program BDC will provide financing on favorable terms, helping businesses cope with the immediate financial pressures caused by US tariffs. The government also said that the program is intended not only as short-term support, but also as a tool to help companies transform and adapt to future market conditions. Canada expects financial institutions to continue to work with impacted businesses as part of a broader collective response to support sectors impacted by tariffs.
The program is consistent with the government's goal of providing quick liquidity to viable companies facing significant economic challenges related to tariffs on steel, aluminum and copper in the United States.
Additional 500 $ million for the Regional Tariff Response Initiative
In addition to the BDC program, the Canadian government will commit an additional $500 million under the Regional Tariff Response Initiative. This funding will be provided by Regional Development Canada and will support tariff-affected businesses across all sectors of the economy. The funding is aimed at helping small and medium-sized businesses access financing for market diversification, increased productivity, strategic business pivots and increased competitiveness.
Canada will continue to support other sectors affected by tariffs
The Government of Canada also said it will continue to support other critical industries affected by tariffs which form key pillars of the national economy, including softwood lumber and forestry. This indicates that Canada's tariff response is not limited to industries
