Government Support for Canadian Businesses Facing U.S. Tariffs

Provinces like Ontario, Québec, New Brunswick and Prince Edward Island have also introduced specific programs targeting sectors like manufacturing, export and agriculture, to help businesses navigate the challenges posed by tariffs and ensure their long-term sustainability.

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

• 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 the Canadian Steel Sector: Provides protection and growth support through surtaxes on excess and Chinese imports, trade enforcement, $1 billion for innovation and supply chain resilience, $70 million for worker training and targeted financing for SMEs and large manufacturers.
• 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 October 11, 2025, in response to significant economic changes

Ontario

• Provincial Tax Deferral for Ontario Businesses: Provides up to $9 billion in relief by allowing 80,000 businesses to defer provincially administered taxes for six months without interest or penalties, easing cash flow pressures during economic uncertainty
• WSIB Rebates for Safe Employers: Delivers $2 billion in financial relief by returning surplus WSIB funds to eligible employers with strong health and safety records, supporting job retention and business stability across Ontario

Québec

• FRONTIERE Program: Supports exporters facing short-term liquidity issues, enabling them to adjust their business model or supply chain
• Moratorium on Repayment of Local Investment Funds: Allows businesses to receive a six-month deferral on their LIF financing repayments, including both principal and interest
• 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)
• 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
• ESSOR Program: Helps manufacturing businesses improve their innovation and productivity to stand out and diversify their markets
• Grand V Initiative by Investissement Québec: Stimulates investments and supports the acceleration of the transition towards innovation and sustainable productivity for businesses
• Training for Resilience and Employment Competitiveness Call for Projects: Allows businesses impacted by tariffs to train and develop the skills of their workforce
• 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.)
• Québec Businesses Program by the Caisse de dépôt et placement du Québec: Supports the launch of projects aimed at increasing productivity or pivoting to new markets
• Opération Prospérité Québec: Province‑wide initiative by Commerce International Québec and the regional export promotion organizations network to guide export‑ready SMEs through tariffs via market diversification strategies, expert‑led services, and access to programs like CanExport and PSCE

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
• Labour Market Adjustment Support: Flexible assistance for workers affected by tariffs, delivered through Working NB and the Department of Post-Secondary Education, Training and Labour, with additional community support via the Regional Development Corporation

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