Tariffs have become a defining challenge for Canadian businesses in 2025, reshaping supply chains, squeezing margins, and creating uncertainty for entrepreneurs and business leaders alike. From manufacturers facing higher input costs to exporters navigating volatile trade relationships, the impact is being felt across most industries and regions. Recognizing these pressures, both federal and provincial governments have introduced a range of grant and financing programs to help companies adapt, stabilize, and remain competitive.
This blog brings together the most up-to-date list of grants and support programs available to Ontario businesses affected by tariffs. Whether your priority is securing working capital, diversifying markets, or strengthening supply chain resilience, the following programs are designed to provide practical support during a period of trade uncertainty.
Provincial Support for Tariff-Affected Businesses (Ontario)
Protect Ontario Financing Program – Provides Ontario-based businesses hit by U.S. tariff pressures with access to urgently needed working capital through government-backed loans. Launched as part of the province’s broader Protecting Ontario Account, this program sets aside up to $1 billion in financing to help companies in key sectors, particularly steel, aluminum, and automotive, manage the cash flow disruptions caused by Section 232 tariffs. Eligible for-profit businesses registered in Ontario can apply for loans ranging from $250,000 to $40 million to cover essential operating costs, including payroll, lease obligations, and utility payments. By providing liquidity support rather than grants, the initiative aims to stabilize operations, safeguard jobs, and prevent supply chain disruptions as companies navigate tariff-related uncertainty.
Ontario Together Trade Fund (OTTF) – Designed to help Ontario businesses strengthen their resilience against tariff-related disruptions by supporting strategic investments in capacity, supply chains, and market diversification. Through this program, the province provides grants and interest-free loans to small and medium-sized enterprises (SMEs) directly affected by U.S. trade actions. Funding is available for projects that expand interprovincial and international market reach, re-shore critical supply chains, and enhance production capabilities. By focusing on near-term investments, such as upgrading equipment, scaling operations, or developing new distribution channels, the OTTF enables businesses to reduce reliance on vulnerable markets and build long-term competitiveness.
Regional Tariff Response Initiative (RTRI) – Delivered by Canada’s regional development agencies (RDAs) as part of a national $1‑billion program, the RTRI targets SMEs that show at least 25% of sales in affected markets or can document cost hikes, lost orders or other tariff impacts. Eligible businesses must be incorporated, operating in southern Ontario, and have a minimum of five full-time employees. Funding is available for projects that improve productivity, reduce costs, strengthen supply chain resilience, and expand into new markets. With nearly $160 million explicitly allocated to southern Ontario, this initiative provides repayable and non-repayable contributions to help companies adapt quickly to shifting trade conditions.
Federal Support for Tariff-Affected Businesses
Strategic Response Fund (SRF) – A $5‑billion federal initiative administered by Innovation, Science and Economic Development Canada (ISED). The SRF builds on the legacy of the Strategic Innovation Fund but is tailored for speed and resilience in today’s volatile trade environment. The program targets industries disproportionately affected by U.S. tariffs, such as steel, aluminum, and automotive manufacturing, while also maintaining flexibility to support other high-value sectors facing urgent competitive pressures.
Funding is available in the form of repayable and non-repayable contributions, with support directed toward projects that:
- Diversify trade markets beyond the U.S.
- Strengthen domestic production capacity and reduce reliance on vulnerable supply chains
- Develop new value-added products and improve productivity
- Reinforce supply chain resilience through modernization and innovation
Export Development Canada (EDC) Trade Impact Program – Provides $5 billion in additional financing and insurance capacity to help Canadian exporters and their suppliers manage the challenges created by tariffs and global trade uncertainty. This program is designed to give SMEs the tools they need to maintain stability and pursue growth even in volatile markets. Through the Trade Impact Program, eligible companies can access a range of support, including:
- Working capital loans and guarantees to ease cash flow pressures caused by tariff-related disruptions
- Trade credit insurance to protect against non-payment risks when selling into uncertain or shifting markets
- Financing solutions for exporters and their supply chain partners, ensuring that not only direct exporters but also the Canadian companies that supply them can remain competitive
By deploying this large-scale support, EDC aims to reduce the immediate financial strain from tariffs while helping businesses diversify their customer base and strengthen resilience against future trade shocks.
The proposals would implement the remaining portion of the substantive Canadian‑Controlled Private Corporation (CCPC) measure related to passive income from foreign affiliates. This change could limit the ability of certain CCPCs to defer Canadian tax on passive foreign income.
Final Thoughts
Tariffs continue to create real challenges for Canadian businesses, from rising costs to disrupted supply chains. While no program undoes tariffs entirely, together these grants and supports give companies tools to cope and adapt.
Business leaders should explore all available programs. Provincial economic development agencies and industry associations often have dedicated tariff-response teams. Grants and financing are not the only ways the government is supporting businesses affected by tariffs; other federal relief includes deferred tax and remittance deadlines (GST/HST and corporate tax) and enhanced EI Work-Sharing rules.
With combined federal and provincial grants, loans and tax measures (totalling well over $10 billion), affected companies have unprecedented opportunities to manage costs, retool their operations and seek out new customers. By leveraging the right mix of funding and advisory resources, Canadian SMEs can not only weather the immediate pressures of tariffs but also emerge stronger, more resilient, and better prepared for the opportunities of a shifting global economy.
This article was written by the NVS Professional Corporation team, your knowledgeable Barrie and Markham accountants. The content is intended as a general guide for informational purposes only. For specialist advice tailored to your specific situation, please reach out to our expert team.
