How Canadian Businesses Can Navigate the New Tariff Response Funding

In September 2025, the federal government unveiled a comprehensive funding strategy to help Canadian businesses and workers adapt to rising trade tensions and tariffs. With both national and regional support streams available, small and larger commercial businesses have a unique opportunity to access funding aimed at reshoring production, diversifying markets and strengthening supply chains.

Here’s what you need to know – and how to get your business “shovel-ready” for funding.

Why this new Canadian government funding exists

Recent new tariffs across the world stage have disrupted supply chains and affected key sectors, ranging from steel to canola. This response is designed to strengthen domestic industries, reduce reliance on a narrow range of trade partners and defend Canadian jobs.

In a recent conversation with Mike Janke, Managing Partner at GrantMatch he shared, “It’s important to remember that government funding programs like the Strategic Response Fund and Regional Tariff Response Initiative are designed to bolster the economic stability of Canadian businesses. By understanding and utilizing these programs, businesses can secure the financial resources needed to help them navigate economic challenges and capitalize on growth opportunities.”

The strategy is anchored in two major programs:

1. Regional Tariff Response Initiative (RTRI)

Delivered by Canada’s Regional Development Agencies (RDAs), the Regional Tariff Response Initiative provides $1 billion over three years to support small and medium-sized enterprises (SMEs) impacted by tariffs.

Who it’s for:

• SMEs that rely heavily on exports to the U.S. or China

• Businesses experiencing supply chain disruptions or tariff impacts

• Indigenous-owned businesses

• Non-profits or associations that support affected sectors

What it covers:

• Non-repayable grants from $100,000 to $1 million

• Productivity improvements and process digitization

• Market expansion (domestic or international)

• Workforce retention and job creation

• Projects that stabilize or strengthen local supply chains

“The distribution of this funding is going to be broad,” adds Janke, “If every company gets the maximum $1 million, that’s 1,000 Canadian businesses getting meaningful support to retool, retrain and reinvest in their operations.”  He also notes the initiative is not solely for producers of steel or automotive manufacturers. “If you import items and you’re impacted by tariffs, this could apply to you.”

2. The Canadian Strategic Response Fund (SRF) 

This $5 billion fund, launched by the Federal Government, is aimed at helping those companies highly affected by shifting trade policies by enabling them to adapt, innovate and thrive despite rising tariff pressures.

Who it’s for:

The SRF focuses on strategic sectors such as automotive, steel and aluminum, but can also support other high-value sectors where timely federal funding can drive industrial transformation.

Eligible projects:

• Large-scale innovation and technology development

• Projects with costs exceeding $20 million

Types of costs supported:

• Capital investments (equipment, facilities, technology updates)

• Automation and productivity improvements

• Supply chain reshoring and resilience

• Market diversification initiatives

• Workforce training and reskilling

• Pre-development activities, such as feasibility and engineering studies

More information: Strategic Response Fund (SRF) Government of Canada Web Site

How Businesses can Prepare to Apply for Grants

Due to the competitive nature of this initiative, applying early and being prepared will be major factors in your success.

Janke suggests to start gathering the following information in preparation for applying to grants:

• Financial statements: P&L, balance sheet, cash flow

• Business plan: Show how you’ll adapt to tariffs

• Market plan: Diversification or export strategy

• Project budget: Detailed costs and timelines

• Proof of impact: Sales data or supply chain evidence

• Workforce plan: Hiring and training strategies

• Partnership letters: Industry association or collaborator support

Having this information ready will help to speed up reviews and improve your chances of approval.

5 min read: Looking at Government Grants for your Business? Read These Tips Before You Apply

Where to Start Applying for Canadian Government Grants for Your Business

Both programs will require applicants to clearly demonstrate how their business affects the local supply chain and provides economic benefits to the community.

As you prepare your documents using the checklist above check the status of the program you are exploring as some programs are open while others are closed.

These programs represent a critical opportunity for Canadian businesses to strengthen their operations amid global volatility. Whether you’re a small company that needs to automate systems or a large manufacturer looking to pivot your supply chain, taking advantage of these opportunities can make a meaningful difference in your ongoing success.

“From a competitive standpoint, keep in mind that these programs will attract a lot of attention among Canadian businesses, some of which may be your direct competitors. Choosing not to take action may put your business at a disadvantage as others in your space pivot and re-invest to adapt to economic forces more efficiently. It’s imperative owners stay informed on new and currently available grant funding programs for their business.”