Government Support for Canadian Businesses Facing U.S. Tariffs

Provinces such as Québec, New Brunswick and Prince Edward Island have introduced specific programs to assist industries most affected by tariffs, including manufacturing, export, and agriculture sectors. These measures are designed to help businesses adapt to current challenges, explore new opportunities, and enhance their resilience in the face of global trade disruptions.

By offering these tailored solutions, the government aims to ensure that Canadian businesses are better positioned to navigate the complexities of international trade and continue thriving despite external economic pressures. The programs also encourage innovation and market diversification, key to securing long-term success for Canadian businesses.

Canada

• Duties Relief Program: Allows businesses to import goods without paying duties if they are later exported, with or without transformation, under certain conditions verified by the CBSA
• Duty Drawback Program: Provides a refund on duties paid for goods imported and then exported, whether as-is, transformed, or destroyed, to reduce export costs and support competitiveness
• Tariff Remission Process for Certain U.S. Goods: Allows Canadian businesses to request tariff relief or refunds on U.S. products when no reasonable alternative is available or in exceptional economic circumstances
• Tariff-Related Tax Relief: Defers and cancels interest on GST/HST and corporate income tax (T2) payments due between April 2 and June 30, 2025, automatically applied by the CRA to support businesses
• Large Enterprise Tariff Loan (LETL): Provides loans of at least $60 million to large, viable Canadian companies impacted by tariffs that are facing challenges accessing traditional financing and whose activities or employment significantly impact the economy
• Support for Canadian Exporters
  • Self-service resources to address issues related to U.S. tariffs
  • Export diversification support
  • Government of Canada partners’ assistance
  • Sector-specific diversification support
  • Tools related to tariffs provided by the Canadian government
• Support for Expanding into New Markets: Provides trade data, export advice, and tools to help businesses enter new markets, reduce risks, access public procurement, and promote inclusive trade
• Support for Canadian Agriculture and Agri-food Industries: Offers support to agriculture and agri-food sectors affected by trade disruptions through financing programs, risk management, export assistance, and marketing tools, including Agri-Stability, Agri-Investment, low-interest loans, and access to new markets
• Work-Sharing Program: Helps employers and employees avoid layoffs by temporarily reducing working hours, while providing employment insurance benefits, and allows companies to retain skilled workers during a temporary business downturn
• Temporary Employment Insurance Measures: Removes the waiting period, suspends the deduction of severance payments, and adjusts the unemployment rate in certain regions to improve access to benefits between March 30, 2025, and July 12, 2025, in response to significant economic changes

Québec

• FRONTIERE Program: Supports exporters facing short-term liquidity issues, enabling them to adjust their business model or supply chain
• ESSOR Program: Helps manufacturing businesses improve their innovation and productivity to stand out and diversify their markets
• Training for Resilience and Employment Competitiveness Call for Projects: Allows businesses impacted by tariffs to train and develop the skills of their workforce
• Panorama Investissement Québec Solution: Provides financial support and guidance to diversify and increase the sales of businesses in Canada and internationally (excluding the United States)
• Québec Businesses Program by Caisse de dépôt et placement du Québec (CDPQ): Supports the launch of projects aimed at increasing productivity or pivoting to new markets
• Moratorium on Repayment of Local Investment Funds (LIF): Allows businesses to receive a six-month deferral on their LIF financing repayments, including both principal and interest
• Grand V Initiative by Investissement Québec: Stimulates investments and supports the acceleration of the transition towards innovation and sustainable productivity for businesses
• DEPART Program: Aims to help businesses located in one of the 25 targeted regional county municipalities diversify and strengthen their activities to stimulate local economic growth
• Custom Training Initiative for Market Diversification: Supports businesses impacted by U.S. tariffs by assisting in the development of their workforce's skills and implementing strategies for diversifying into new markets (Canadian or international, excluding the U.S.)

New Brunswick

• Working Capital Loans: Up to $5 million in financial support to help businesses maintain operations
• Competitiveness and Growth Program: A new $40 million program to enhance the long-term sustainability of New Brunswick’s large export-intensive companies
• New Brunswick Fisheries Fund: $4 million to support seafood producers, recognizing their vulnerability to current challenges
• Opportunities NB Strategic Assistance: Utilizes an existing $30 million budget to support businesses in response to challenges, focusing on contingency planning, market diversification, and productivity improvements

Prince Edward Island

• Export Enhancement and Diversification Fund: Provides non-repayable assistance covering up to 60% of eligible costs, up to $32,000, for expenses like market research, advertising, and trade shows
• Tariff Working Capital Program: Offers financial relief to businesses affected by tariffs, with loans ranging from 6 months to 6 years, including interest-only payments for the first 12 months
• Expanded Trade Missions: Innovation PEI is increasing trade missions for local exporters, with upcoming missions to Canada, Europe, Southeast Asia, and the Mexico/Caribbean region
• Information & Education: A dedicated online hub will offer resources on tariffs, including webinars, funding details, and a trade mission calendar
• Ongoing Program Support: Existing Innovation PEI programs will continue to help businesses address tariff challenges, with enhanced outreach for operational investment, productivity, and supply-chain diversification