Global Daily Tax News, Canada Adds To Support For Tariff-Hit Firms, (May 12, 2026)

The Canadian Government has announced new support measures for businesses affected by US tariffs.

Canada will launch a new CAD1bn Business Development Bank of Canada program and add CAD500m in additional funding for the Regional Tariff Response Initiative.

The BDC program will be available to industries that manufacture and export products containing steel, aluminum, or copper. It will support firms that use these metals in a significant way in their production and that have been impacted by the tariffs.

The Government said: "The BDC program will provide financing at favorable terms to enable businesses to address immediate pressures. The program will also offer the industry a new tool to transform and adapt to future market conditions. This new program aligns with the government's priority to provide rapid liquidity to viable businesses facing significant economic challenges as a result of US steel, aluminum and copper tariffs."

In addition, the Government is providing an additional CAD500m through the Regional Tariff Response Initiative (RTRI) to support tariff-impacted businesses in all economic sectors, including the softwood lumber and forestry sector.

The Canadian Government noted that the support measures add to existing measures including:

• 25 percent tariffs on a list of US steel product imports worth CAD12.6bn and aluminum products worth CAD3bn;

• a commitment of CAD5bn, delivered through the Strategic Response Fund (SRF), with flexible terms to help firms in all sectors;

• tariff rate quotas (TRQ) to curb foreign steel imports, with TRQs set to 20 percent of 2024 import levels, with a 50 percent tariff applied above that threshold, for non trade agreement (FTA) countries and TRQs set at 75 percent of 2024 import levels, with the same over-quota tariff, for FTA partners (excluding the US and Mexico);

• a 25 percent tariff applied on certain steel and aluminum imports from China as well as on certain non-US 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 percent tariff applied on certain imports of steel-derivative products such as wind towers, prefabricated buildings, fasteners, and wires;

• more than CAD100m 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;

• CAD150m of the RTRI carved out for steel producers;

• enhanced financing tools, including changes to the Large Enterprise Tariff Loan (LETL) and expanded support through the BDC Pivot to Grow Loan and the RDAs;

• use of Canadian steel and aluminum prioritized in publicly funded projects through a new Buy Canadian procurement policy that requires all contracts worth over CAD25m to prioritize Canadian materials; and

• temporary freight rate relief for steel and lumber, to decrease domestic transportation costs and encourage consumption of Canadian-made products.