$1.5 billion in new federal tariff relief funding for Canadian businesses

On May 4, 2026, the Government of Canada announced $1.5 billion in additional support for businesses impacted by U.S. tariffs — a direct response to the U.S. adjustment of its tariffs on products containing steel, aluminum and copper on April 6, 2026.

The package includes two major programs for Canadian SMEs and manufacturers:

• A new $1 billion BDC program ⁠–⁠ financing on favourable terms for businesses that manufacture or export products containing steel, aluminum or copper
• A $500 million top‑up to the Regional Tariff Response Initiative (RTRI) ⁠–⁠ delivered through Canada's regional development agencies to support tariff‑impacted SMEs in all sectors of the economy

The new $1 billion BDC program

The Business Development Bank of Canada (BDC) will deliver $1 billion in financing on favourable terms to firms that use steel, aluminum or copper in a significant way in their production and that have been impacted by the recent U.S. tariff adjustments.

Key features:

• Favourable‑terms financing (not a grant) for manufacturers and exporters of products containing steel, aluminum or copper
• Program details and eligibility criteria are being finalized by BDC ⁠–⁠ we'll help you assess fit as soon as the application window opens

Regional Tariff Response Initiative (RTRI) ⁠–⁠ $500 million top‑up

The RTRI is aimed at empowering Canadian businesses to build more resilient supply chains, reach new markets and seize new opportunities. With the new $500 million top‑up, the program continues to deliver targeted financial support to tariff‑impacted SMEs in all sectors ⁠–⁠ with a dedicated $150 million carve‑out for steel producers.

The RTRI is delivered through Canada's regional development agencies (ACOA, CED, CanNor, FedNor, FedDev Ontario, PrairiesCan, or PacifiCan), and eligibility criteria vary by region.

How much is the RTRI funding worth?

• Tariffed sectors: non‑repayable contributions over $100,000 up to $1 million
• Non‑tariffed sectors: repayable funding up to $10 million, plus non‑repayable contributions up to $100,000

Who's eligible? Eligibility varies by region, but the RTRI is generally aimed at for‑profit Canadian SMEs that have been negatively impacted by the tariffs ⁠–⁠ either through significant exposure to tariffed markets or through documented business impact such as increased input costs, reduced orders, or loss of market access. Your Baker Tilly advisor can confirm whether your business qualifies under your region's criteria.

What types of activities are eligible? The RTRI supports a broad range of business adaptation activities ⁠–⁠ including technology and productivity investments, supply‑chain and market resilience, and broader business adaptation.

The bigger picture

These two programs sit alongside a broader federal tariff response that includes the $5 billion Strategic Response Fund (SRF), the Large Enterprise Tariff Loan (LETL), the BDC Pivot to Grow Loan, enhanced employment insurance and work‑sharing supports, and the new Buy Canadian procurement policy. There may be more than one program that fits your business.

Next Steps

Not sure which programs your business qualifies for? Your Baker Tilly advisor can help assess your eligibility across the RTRI, the new BDC steel/aluminum/copper program, and the broader federal response ⁠–⁠ then guide you through the application process.

With $1.5 billion in new funding now flowing, a short conversation with our team can help you map your situation to the right program — RTRI, the new BDC program, SR&ED, or others — before applications open.