Ottawa to provide $1.5B to support tariff-hit industries

The federal government is committing $1.5 billion to support Canadian industries affected by U.S. tariffs on steel, aluminum and copper, including the launch of a new financing program through the Business Development Bank of Canada.

Industry Minister Mélanie Joly and Artificial Intelligence and Digital Innovation Minister Evan Solomon announced the measures May 4, positioning them as part of Canada’s broader response to tariff changes introduced by the United States April 6.

The package includes a new $1-billion program delivered by the Business Development Bank of Canada aimed at companies that manufacture and export products containing steel, aluminum or copper. The program will offer financing on favourable terms to help businesses manage immediate financial pressures while adapting to shifting market conditions.

The government says the initiative is intended to support firms that rely heavily on these metals in production and have been impacted by tariffs, while strengthening long-term economic resilience.

An additional $500 million will be provided through the Regional Tariff Response Initiative to support businesses across all sectors. Delivered by regional development agencies, the funding is aimed primarily at small and medium-sized enterprises seeking to diversify markets and improve productivity.

The government says it will also continue supporting other tariff-affected sectors, including softwood lumber and forestry.

The latest measures build on a broader federal response that includes retaliatory tariffs, financial supports and workforce initiatives.

Those actions include 25 per cent tariffs on $12.6 billion worth of U.S. steel imports and $3 billion in aluminum products, as well as a $5-billion Strategic Response Fund to help businesses adapt and grow.

Additional steps include tariff rate quotas on foreign steel imports, new tariffs on certain Chinese and non-U.S. metal products, and a Buy Canadian procurement policy prioritizing domestic steel and aluminum in federal contracts over $25 million.

The government has also introduced workforce measures, including a reskilling program for up to 50,000 workers and more than $100 million over two years to support employers using work-sharing agreements.

Officials say the combined measures are intended to help Canadian industries adjust to what they describe as “unfair and unjustified” tariffs while maintaining competitiveness in global markets.