Tariff Trouble? Canada Finally Has Your Back!

With rising U.S. and China tariffs putting pressure on Canadian businesses, your company might be feeling the squeeze of higher costs, lower margins, and lost opportunities. You’re not alone. Nearly half of all businesses in Canada expect ongoing uncertainty from tariffs in the coming year. Tariffs create ripple effects that impact all Canadian businesses by disrupting supply chains, increasing equipment costs, and weakening market stability.

In fact, almost two-fifths of Canadian businesses have already reported negative impacts, and close to 8% are planning to delay major expenses or expansion.

That’s why relief solutions to tariffs is as important as ever, and the government of Canada sees this need too. 

Industries feeling the heat of tariff turmoil

All industries around Canada are being hit hard with the tariffs, but one industry in particular is hurting: metal. 

With a 25% tariff imposed on steel and aluminium, ~37% of steel and aluminum businesses are reporting impacts. 

With high tariffs on raw materials the automotive industry and the lumber industry are seeing devastating effects. 

“Small businesses don’t have a lot of runway left. They are trying their best to absorb the costs, but if nothing changes, they will be forced to make some tough decisions,” said Corinne Pohlmann, executive vice-president at the Canadian Federation of Independent Business (CFIB).

The Canadian canola industry is experiencing massive shifts too. China imposed a 100% tariff on canola oil and meal and a 75.8% tariff on canola seed. As China is the largest canola seed importer for Canada, accounting for $4 billion in imports, the industry is in dire straits. 

This toll has also been reflected in the e-commerce sector. With the end of the De minimis exception (which allows sub-$800 imports to enter the U.S. duty and tax free), the e-commerce industry is seeing a shakedown. Lululemon, a B.C. based clothing company, anticipates to take a $240 million hit in profits as a result of the changes. But it’s not just the large businesses that are seeing the hit, but the small ones too. 

Doris Kochanek, an Ottawa-based Etsy seller, has found herself bogged down by the time-consuming paperwork and fees. “It’s an absolute nightmare,” Kochanek said. 

How Canada is fighting back against tariffs

In Sept 2025, Mark Carney launched multiple measures to battle the knock-off effects of tariffs, with many directly benefitting SMEs. 

We understand the uncertainty many Canadians are facing due to U.S. tariffs and shifting global trade. That’s why our government is taking ambitious, targeted action – investing in the ingenuity of our workers and the resilience of our industries. These measures will ensure businesses have the liquidity to adapt, workers have the skills to lead, and our economy is built to thrive in a more self-reliant, diversified future.

François-Philippe Champagne

Minister of Finance and National Revenue

And these words were backed by action — here’s what’s available to businesses right now.

Strengthening the workforce 

• Providing ~ $887 million to strengthen Canada’s workforce through subsidies, technology implementation, and labour market challenges.
•  Priority Industries: Autoparts, steel, and aluminum industry. 
• An extra $1.6 billion in funding to provide extra weeks of EI benefits. 

Strategic Fund: $5 billion to support large-scale, trade-exposed projects. 

Financial relief: Expand low-cost capital for SME’s by raising the maximum loan size to $5 million.

Assisting Canada canola and agriculture producers: $370 million to assist biofuel production as well as increase loan payment and cash advances. 

SME tariff response:  

• Provide $1 billion over three years to fund SMEs in Canada.
• 15% of this funding is set aside for the steel sector. 
• Businesses can qualify for up to $1 million in non-repayable funding to invest in their growth, diversify markets, create new revenue sources by adopting innovative technologies and bringing new products and services to market. 
• Done based on province or region.

Tariff relief across Canada

Eligibility for tariff relief in Canada differs by region, so here’s a quick look at how the rules vary.

British Columbia

• Need to be in operation for 3 years. 
• Indigenous-led businesses get 100% for non-repayable or repayable funding.
•  Have 25% of sales in markets affected by tariffs OR  – Demonstrate significant likelihood of negative tariff impacts.
• Priority sectors: forestry, metal, machinery and equipment, agriculture and seafood. 
• Deadline: Priority for submissions before Oct. 15, 2025.

Prairies

• In operation for 2 years and are operating in the Prairie provinces.
• Indigenous-led businesses: up to 80% for commercial projects and 100% for non-commercial projects. 
• Can have multiple project approvals.  
• Have 25% of sales in markets affected by tariffs. 
• Deadline: Dec. 31, 2027. 

Southern Ontario

• Covers 50% of non-repayable or repayable funding. 
• Need at least 5 employees and fewer than 500 employees

Northern Ontario 

• Covers 50% in non-repayable funding and 75% of repayable funding
• Eligible costs can be retroactive

• Priority sectors: steel, automotive, critical minerals, mining, forestry, clean technology, bioeconomy, and agriculture sectors. 
• NOT considered: Retail and tourism sector

Don’t miss out – how your business can benefit

These can ease the financial burden on Canadian businesses by lowering import costs, improving cash flow, and boosting competitiveness both locally and globally. This could mean thousands in savings for your business.

You may be wondering: If this funding is repayable, why not just get a regular loan? Unlike standard loans, repayable funding offers unique benefits that make it an exceptional opportunity for your business.

Repayable funding rundown: 

• Interest-free. 
• Repayment starts after one year. 
• No collateral required.
• No penalty for early repayment. 
• Additional repayment flexibilities are possible with exceptions. 
• Businesses looking for non-repayable funding may be prioritized if from a priority area.

By leveraging these supports, Canadian businesses can not only offset the negative impacts of tariffs but also open new opportunities.

Let’s get you funded

At Granted Consulting, we specialize in guiding Canadian companies through the funding process – making it simpler, faster, and far less stressful. Our team can help you access this program and other government funding opportunities so you get the support your business deserves. We stay on top of the ever-changing landscape of grants and funding, so you never miss an opportunity.

👉Sign up for GrantedStarter: Our most up-to-date platform for finding grants and funding tailored to your business, you can skip complex forms, get claim reminders, and receive smart funding matches and expert tips to help you make the most of every opportunity.

 👉Start today by trying our Grant Calculator to instantly see how much funding your business could qualify for.

With the right support, your business can secure funding, reduce costs, and keep growing despite tariff challenges.