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

The following support measures are already available:

• Canada Small Business Financing Program: Helps small businesses obtain loans by sharing the risk with lenders
• Trade Commissioner Services: Assists businesses by connecting them to funding and support programs for growth and diversification
• Remission Process: Provides relief from tariffs as part of Canada's immediate response and future tariff actions

The following support measures are in the process of being implemented:

• Trade Impact Program: A $5 billion initiative to help exporters reach new markets and navigate economic challenges from tariffs
• $500 Million in Loans through Business Development Bank of Canada: Offers loans and advisory services to businesses impacted by tariffs and their supply chains
• $1 Billion in Financing through Farm Credit Canada: Provides financial support to the agriculture and food industry to address cash flow challenges and maintain supply

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

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