New measures meant to 'ensure companies have the tools and financing they need to keep operating, growing, and building Canada’s strength at home'
The federal government is committing $1.5 billion to help Canadian businesses hit by recent U.S. tariffs on products containing steel, aluminum and copper.
The change includes a new $1-billion program through the Business Development Bank of Canada (BDC) and $500 million in additional funding for the Regional Tariff Response Initiative (RTRI).
“We are taking concrete action to strengthen Canada’s economy by standing behind our steel, aluminum and copper industries. The new measures announced today will protect workers and ensure companies have the tools and financing they need to keep operating, growing, and building Canada’s strength at home,” said Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions.
New $1-billion BDC program
The new BDC program is designed to strengthen Canada’s economic resilience by providing financing on favourable terms to industries that manufacture and export products containing steel, aluminum or copper, according to the government.
The support will be available to firms that use these metals in a significant way in their production and that have been impacted by the tariffs.
As a result of the United States’ April 6, 2026, adjustment to its tariffs on products containing steel, aluminum and copper, the government of Canada is working with urgency to transform its strategic industries so they can adapt, compete and win in this new global environment.
The government expects Canada’s financial institutions to continue to work with businesses as it “leans in collectively” to support the sector, it says.
“This new $1-billion program will give manufacturers and exporters the tools they need to adapt, stay competitive and grow—strengthening Canada’s economic resilience and ensuring our strategic industries are positioned to succeed in a changing global market,” said Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada.
Additional $500 million in tariff response
The $500 million through the Regional Tariff Response, delivered by Canada’s regional development agencies, will help ensure that small and medium-sized enterprises (SMEs) have access to the financing they need to enable strategic pivots through investments in market diversification and enhanced productivity that strengthen their competitiveness, the government says.
“Western Canadians know what it means to persevere in tough conditions. That is true today, as tariff-impacted businesses across our region adapt to meet that challenge head on,” said Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada.
“Our government is continuing to support that work through a $500 million top-up to the Regional Tariff Response Initiative. This additional funding will help more businesses adjust to shifting markets and supply chains, diversify, build resilience, stay competitive and keep creating good jobs in communities
Part of broader tariff response
The announcement builds on a series of measures the government has already introduced in response to what it calls “unfair and unjustified” tariffs. These include:
- 25 per cent tariffs on a list of U.S. steel product imports worth $12.6 billion and aluminum products worth $3 billion.
- A commitment of $5 billion, delivered through the Strategic Response Fund, with flexible terms to help firms in all sectors, including steel and aluminum, impacted by tariffs to adapt, diversify and grow.
- Tariff rate quotas to curb foreign steel imports, with quotas set to 20 per cent of 2024 import levels—with a 50 per cent tariff applied above that threshold—for non–free trade agreement countries, and quotas set at 75 per cent of 2024 import levels, with the same over-quota tariff, for free trade partners excluding the U.S. and Mexico.
- A 25 per cent tariff applied on certain steel and aluminum imports from China as well as on certain non-U.S. steel and aluminum imports that contain steel that is melted and poured in China or aluminum that is smelted and cast in China.
- A 25 per cent tariff applied on certain imports of steel-derivative products such as wind towers, prefabricated buildings, fasteners and wires,.
The package also includes a new reskilling initiative for up to 50,000 workers, along with more flexibility and extended benefits in employment insurance and a new digital jobs and training platform to connect Canadian workers more quickly to careers, the government says.
More than $100 million has been earmarked over two years to provide support to eligible employers in sectors with an active work-sharing agreement and a commitment to supporting training for employees working reduced hours, helping up to 26,000 Canadian workers in various sectors, including steel,.
The government has also carved out $150 million of the RTRI for steel producers and introduced enhanced financing tools, including changes to the Large Enterprise Tariff Loan and expanded support through the BDC Pivot to Grow Loan and the regional development agencies, the government says.
In addition, the federal government has prioritized the use of Canadian steel and aluminum in publicly funded projects through a new Buy Canadian procurement policy that requires all contracts worth over $25 million to prioritize Canadian materials.
Ottawa is also collaborating with railway companies to cut freight rates for transporting Canadian steel and lumber interprovincially by 50 per cent, the government says.
