Federal and provincial tariff support programs

Tariffs on U.S. products

• March 13, 2025: On March 12, 2025, the U.S. imposed a 25 percent tariff on steel and aluminum imports. In response, Canada imposed 25 percent retaliatory tariffs on $29.8 billion worth of U.S. steel products, aluminum products, and other imported U.S. goods, effective March 13, 2025. Click here for the full list of U.S. imports subject to these retaliatory tariffs.
• March 6, 2025: The U.S. has postponed the 25 percent tariff on goods from Canada that fall under the Canada-United States-Mexico Agreement (CUSMA) until April 2, 2025. In response, Canada will delay its second round of retaliatory tariffs, worth $125 billion, until April 2, 2025.

In response to recent trade policies, Canada has implemented a 25 percent tariff on a range of products imported from the U.S. These tariffs aim to protect Canadian industries and balance trade relations. The implementation is being carried out in two phases:

1. Tariffs on $30 billion worth of goods, which took effect on March 4, 2025, and will remain in place during the pause.
2. Tariffs on $125 billion worth of goods, which will go into effect after a 21-day comment period. This phase has been paused until April 2, 2025.

For a detailed list of the affected products, please visit the official announcement here.

The Government of Canada has introduced several support measures to help businesses and workers cope with the impact of U.S. tariffs. 

Trade Impact Program — Export Development Canada

Launched through Export Development Canada (EDC), the Trade Impact Program will deploy $5 billion over two years to help exporters reach new markets and navigate economic challenges such as non-payment, currency fluctuations, cashflow issues, and expansion barriers.

Eligibility criteria:

You are an eligible Canadian exporter if:

• You sell a good and/or service to customers outside of Canada’s borders.
• You create a good and/or service that forms part of an international supply chain.
• You have a plan to export in the future.

Support details:

If you’re an eligible Canadian exporter or a company that supplies exporters, here’s how EDC can help: 

• Trade credit insurance: Protects against losses from non-payment by foreign buyers.
• Foreign exchange solutions: Mitigates risks from currency fluctuations, stabilizing costs and protecting profit margins.
• Financing guarantees: Shares financial institution risks, enabling access to more financing for cashflow management and growth.
• Financing solutions: Increases trade capacity, market expansion, or acquisition of foreign companies.

Learn more about the program here: EDC Trade Impact Program | EDC

Pivot to Grow loan — Business Development Bank of Canada

Available through the Business Development Bank of Canada (BDC), Pivot to Grow — a trade support loan program — will offer $500 million in financial support, advice, and loan deferrals to small and medium-sized businesses with concrete impacts to their financials as a direct result of U.S. tariffs. This includes cancelled contracts, increased costs, or lost customers. The financing and deferrals will be focused on small and medium-sized enterprises supported by a viable business model with direct sales into the U.S. market, or those in supply chains with direct exposure to the U.S.

Eligibility criteria:

• Minimum 25 percent of sales from exports to the U.S.
• Annual sales of $2 million or more.
• Positive cashflow and demonstrated profitability.

Support details:

• Favourably priced loans ranging from $100,000 to $2 million at preferred interest rates (BDC’s base rate minus two percent).
• Flexible repayment terms with up to 12 months of deferred principal payments.
• Advisory services in financial management, operational efficiency, and market diversification.

Learn more about this loan program here: Pivot to grow loan | BDC.ca

Trade Disruption Customer Support Program

Available through Farm Credit Canada (FCC), the Trade Disruption Customer Support Program offers $1 billion in new financing to support the Canadian agriculture and food industry. This program will help address cashflow challenges so businesses can adapt to new market conditions while maintaining the supply of high-quality agricultural and food products that Canadians rely on. 

Eligibility criteria:

• Customers and non-customers must meet the necessary lending criteria.
• Businesses must be financially viable prior to the impact of tariffs.
• FCC does not provide grants or interest-free loans.

Support details:

• Defer principal payments for up to 12 months on existing loans for current customers.
• Access to an additional credit line of up to $500,000.
• Additional support through term loans.

Learn more about the Trade Disruption Customer Support Program here: Trade Disruption Customer Support Program | FCC

Adjustments to EI Work-Sharing Program

Temporary flexibilities to the Work-Sharing Program, in response to the threat or potential realization of U.S. tariffs, are in effect from March 7, 2025, until March 6, 2026. The program provides EI benefits to employees who agree to work reduced hours due to a decrease in business activity beyond their employer's control. This helps employers retain experienced workers and avoid layoffs, as well as helps workers maintain their employment and skills while supplementing the reduced wages with EI benefits. 

Support details:

The temporary adjustments:

• Include an extension to the maximum duration of the Work-Sharing agreement — from 38 weeks to 76 weeks. The agreement must last a minimum of six weeks.
• Waive the required cooling-off period between successive Work-Sharing agreements while special measures are in place.
• Focus recovery measures on helping the business stay viable in light of the threat posed by U.S. tariffs.

Learn more about the changes here: Work-Sharing Program - Overview - Canada.ca

Adjustments to Investment Canada Act guidelines

The government has updated the Investment Canada Act guidelines to protect Canadian companies from harmful foreign takeovers during economic challenges.

Learn more about the changes here: Updated Guidelines on the National Security Review of Investments | Investment Canada Act

The following is a list of business support programs offered by Canadian provinces. Some provinces have not introduced any programs at this time.

Alberta

The Government of Alberta has announced some measures in response to tariffs:

• Stop buying, as well as removing U.S. alcohol products
• Halt contracting with U.S. companies
• Stop purchases of video lottery terminals (VLTs) from the U.S.

British Columbia

The Government of British Columbia is working toward introducing legislation that, if passed, would allow B.C. to further protect jobs and businesses. The proposed legislation would implement the following measures:

• Ability to remove interprovincial trade barriers
• Mandate that low-carbon fuels added to gasoline and diesel be produced in Canada
• Allow B.C. to apply tolls/fees to U.S. commercial vehicles using B.C. infrastructure to travel to Alaska
• Remove U.S. alcohol products from B.C. Liquor stores

Click here to learn more about B.C.’s response.

Saskatchewan

The Government of Saskatchewan has announced some initial tariff relief measures:

• Goods and services procured by the government must prioritize Canadian suppliers, aiming to reduce or eliminate U.S. procurement.
• The Saskatchewan Liquor and Gaming Authority (SLGA) has been instructed to stop purchasing U.S.-made alcohol and to halt its sale to retailers and restaurants.
• Future capital projects planned by the government will be temporarily paused to minimize the use of American contractors and materials.

Click here to learn more about Saskatchewan’s response.

Manitoba

The Government of Manitoba has announced some initial tariff relief measures:

• Businesses affected by tariffs will have the option to defer paying both the provincial sales tax and the health and post-secondary education tax levy — commonly known as the payroll tax — for at least the next three months.
• On March 6, amendments were introduced to the Government Purchases Act that would prioritize Canadian suppliers. Under the buy Canadian policy, preferential treatment may be given to a Canadian supplier when purchasing goods under the authority of the Government Purchases Act. 

More information about these measures will be available in the 2025 Manitoba budget, which will be released March 20.

New Brunswick

The Government of New Brunswick has announced several measures to counter the impact of U.S. tariffs, which include:

• $40 million competitiveness and growth program: Aimed at enhancing the long-term sustainability of New Brunswick’s large export-intensive companies
• Working capital loans: Up to $5 million in financial support to help businesses maintain operations
• New Brunswick Fisheries Fund: $4 million allocated to support seafood producers, who are among the hardest hit
• Opportunities NB: Leverage its existing $30 million strategic assistance budget to address current challenges, support contingency planning, market diversification, and productivity improvements
• Flexible labour market support program: Providing support and services to those who jobs have been affected by tariffs

Click here for a comprehensive overview of New Brunswick’s support package and action plan.

Ontario

The Government of Ontario has outlined some retaliatory actions:

• Removing U.S. alcohol products from the LCBO
• Banning U.S.-based companies from Ontario procurement

During the election campaign, the Ontario government said they would support businesses and workers impacted by tariffs, but there are no details about their plans yet.

Quebec

The Government of Quebec has announced a series of measures aimed at softening the blow of U.S. tariffs on the province’s economy. These include:

• FRONTIERE program: Aims to maintain the activities and liquidity of Quebec's export companies in the manufacturing and primary sectors, with loans up to $50 million.
• ESSOR program: Provides interest-free repayable loans and grants non-repayable contributions to businesses with investment projects of more than $10 million that stand out in terms of productivity.
• Panorama financing and support: Provides working capital to increase or diversify sales in Canada and internationally (excluding the U.S.).
• Grand V initiative: Aims to stimulate investments and accelerate the shift toward innovation and sustainable productivity to propel business growth.
• FORCE program: Assists businesses affected by tariffs or the threat of tariffs in developing the skills of their workforce.
• Local Investment Funds (LIF): Companies can benefit from a six-month deferral for reimbursement, including principal and interest repayment, of the financing granted under the FLI.
• Caisse de dépôt et placement du Québec's (CDPQ) program: Encourages Quebec companies to launch new projects to increase their productivity or to make a strategic pivot to new markets.

For a comprehensive overview of Quebec’s support measures: Support measures for Québec businesses affected by the imposition of U.S. tariffs | Government of Québec

Newfoundland and Labrador

The Government of Newfoundland and Labrador announced some measures in response to tariffs:

• Removing U.S. products from liquor stores
• Reviewing and stopping procurement from the U.S.

We will update with more information as it becomes available.

Nova Scotia

The Government of Nova Scotia announced the following measures taken in response to tariffs:

• U.S. businesses can no longer bid on provincial procurement projects
• Exploring the cancellation of existing contracts
• Doubling the cost of tolls at the Cobequid Pass for commercial vehicles from the U.S.
• Removing U.S. products from liquor stores
• In their 2026 Budget, Nova Scotia added a contingency fund to respond to tariffs

Click here for more information about Nova Scotia’s response.

Prince Edward Island

The Government of Prince Edward Island has introduced new measures to counter the impact of U.S. tariffs. These include:

• Export Enhancement and Diversification Fund: Covers up to 60 percent of costs (to a maximum of $32,000) associated with market research, advertising, trade shows, and market strategies.
• Tariff Working Capital Program: Provides financial relief to businesses affected by tariffs, helping them maintain operations, preserve jobs, and invest in alternative supply chain strategies. Eligible businesses can receive up to $500,000 over six years at a fixed rate of four percent, with principal payments deferred for 12 months.
• Expanded trade missions: Innovation PEI is doubling trade missions for Island exporters, with planned missions across Canada, Europe, Southeast Asia, and the Mexico/Caribbean region.

For a comprehensive overview of PEI’s tariff response plan support measures: Cabinet Committee on Trade Relations announces province’s Tariff Response Plan to support Island businesses | Government of Prince Edward Island

When tariffs are imposed, they can increase costs for imported goods, resulting in higher prices for consumers and businesses alike. This reduces the purchasing power of Canadian households and raises production costs for businesses that rely on imported materials.

On the other hand, tariffs on exports make Canadian products more expensive in foreign markets, which can reduce sales and market share. While domestic producers may benefit from less competition, higher costs for imported inputs can hinder their competitiveness both domestically and internationally.

A decline in import or export volumes can negatively impact revenue streams, potentially causing job losses in affected industries. Tariffs can also disrupt established supply chains, forcing companies to find new suppliers or pay higher prices for existing ones. This results in delays, increased operational costs, and impacts product availability. Disrupted trade relationships create an environment of uncertainty for businesses, making it difficult to plan for the future, which can, in turn, lead to reduced investment and slower economic growth.

For Canadian businesses, adjusting to the new reality of tariffs goes beyond preparing for increased costs — it could mean restructuring their entire business models. However, new opportunities may emerge as businesses seek alternative suppliers, investments, or partnerships. With new government support programs in place, your business may also have new demand, creating the need to scale up and explore ways to get your product to different markets.

Over time, the overall effect of tariffs and retaliatory tariffs will vary across industries, with some experiencing significant challenges while others finding new avenues for growth.