Federal and provincial tariff support programs

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.

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.