The short answer
If U.S. tariffs are hurting your business, the main federal tool for SMEs is the Regional Tariff Response Initiative (RTRI), delivered in Quebec by Canada Economic Development for Quebec Regions (CED). It can cover liquidity needs or a pivot project. BDC, Quebec programs and customs relief measures sit alongside it. Amounts and rules were updated in August and September 2026, so confirm current terms with each organization.
Regional Tariff Response Initiative (RTRI)
According to CED (page modified September 23, 2026), the RTRI helps tariff-affected businesses deal with liquidity pressure, strengthen competitiveness, diversify markets and build resilience.
Who is eligible (Quebec, per CED):
- Incorporated, for-profit businesses located and operating in Quebec, with at least $1 million in annual revenue in one or both of the last two fiscal years, and viable before March 21, 2025.
- Proof of tariff exposure: operating in an affected sector (directly or in the supply chain), earning at least 25% of revenue from goods exported to the U.S., or facing tariff-driven cost increases, supply disruption or lost revenue.
What it funds:
- Liquidity assistance: non-repayable, up to $2 million and up to 50% of eligible costs such as salaries and essential recurring costs (rent, utilities, insurance, property taxes).
- Pivot projects: new, incremental costs for productivity, equipment and technology (including automation), market diversification and supply chain resilience. Non-repayable up to $1 million at up to 50% of eligible costs; larger projects can receive interest-free repayable support up to 75%.
- Limits: up to $3 million in combined non-repayable funding and $20 million in total RTRI funding, repayable support included.
Liquidity funding periods end no later than March 31, 2028, and pivot projects must be completed by March 31, 2029. CED says it contacts applicants within one business day to assess eligibility. In its August 25, 2026 announcement, the Department of Finance said the non-repayable cap rises from $1 million to $3 million as of September 2026.
Other federal measures
The Department of Finance announced on August 25, 2026 several changes. For the dates that apply to each, check the program pages:
- BDC Pivot to Grow, liquidity stream: $250,000 to $5 million in working capital loans with interest-only payments over 36 months, for companies directly affected by tariffs. BDC's revenue threshold for these programs drops to $1 million.
- Canada Strong Diversification Fund: a new stream of the Strategic Response Fund for tariff-affected companies, including medium-sized firms, with shovel-ready projects. Intake is coordinated through regional development agencies.
- Large Enterprise Tariff Loan facility: for large employers, not SMEs.
- Workforce Retention and Retraining Program: combines Work-Sharing and the Worker Retention Grant, with up to $1,000 per participant for training and administrative costs.
Customs relief
Canada.ca also lists measures that reduce duty costs directly: the process for requesting remission of tariffs, the Duties Relief Program for qualified businesses, and the Drawback Program, which removes the domestic duty impact from goods you export. For manufacturers that import inputs and re-export, these can matter as much as any grant.
Quebec programs
Quebec's government lists its own tariff support (page updated September 28, 2026). Examples:
- FORCE (Investissement Québec): temporary liquidity support for manufacturing or primary-sector businesses facing tariffs of 25% or more, with revenue of at least $2 million.
- PAUPME, tariff stream: liquidity support for businesses with revenue between $200,000 and $2 million.
- FLI moratorium: six-month deferral of repayment on Local Investment Fund financing; contact your MRC or local manager.
- Panorama, PSCE and DÉPART: financing and support for diversifying sales and markets outside the U.S.
- ESSOR: innovation and productivity support for manufacturers.
What strengthens an application
- Numbers that show the tariff link. Share of U.S. sales, cost increases, lost orders, supplier disruptions, all with dates.
- A clear choice between liquidity and pivot. Know whether you are covering payroll or investing in automation or new markets.
- A realistic plan. Costs tied to the project, a timeline, and how the company stays viable afterward.
- Clean financials. Revenue history and proof of viability before March 21, 2025 matter for the RTRI.
- Timing. Check which costs are eligible and from what date before you spend.
Having your eligibility assessed
Tariff programs overlap, and each has its own revenue threshold and rules. We can help you work out which ones fit your business and in what order to approach them.
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