Regional Tariff Response Initiative (RTRI): Funding to Help Northern Ontario Businesses Respond to Tariff Impacts

Canadian businesses continue to face uncertainty from tariffs, changing trade policies, rising costs, and supply chain disruptions. For businesses in Northern Ontario, these pressures can affect everything from production costs and market access to staffing, investment decisions, and long-term growth.

To help businesses respond, the Government of Canada has expanded the Regional Tariff Response Initiative (RTRI), delivered through Canada’s Regional Development Agencies. In Northern Ontario, the program is delivered by the Federal Economic Development Agency for Northern Ontario (FedNor).

RTRI provides funding to help tariff-impacted businesses maintain operations, strengthen competitiveness, diversify markets, improve productivity, and build greater resilience against future trade disruptions. The expanded initiative now includes both liquidity assistance and funding for longer-term pivot projects.

What Is the Regional Tariff Response Initiative?

The Regional Tariff Response Initiative is a federal funding initiative designed to help Canadian businesses and organizations respond to the economic effects of tariffs and broader trade disruptions.

Through Canada’s Regional Development Agencies, the Government of Canada is delivering $3.45 billion in support to help tariff-affected businesses address liquidity pressures, strengthen competitiveness, diversify markets, and build resilience.

For Northern Ontario businesses, FedNor’s RTRI funding can support both immediate financial pressures and investments designed to improve the company’s longer-term competitiveness.

The program supports projects that can help businesses:

• Maintain Canadian operations and employment
• Improve productivity and reduce costs
• Adopt automation, digitization, and new technologies
• Diversify customers and markets
• Strengthen domestic supply chains
• Reduce exposure to tariff-related trade risks
• Improve competitiveness
• Expand into new markets
• Modernize business processes and equipment

The initiative is available across tariff-impacted sectors, with businesses assessed based on their eligibility, demonstrated need, and proposed response to tariff impacts.

Two Types of RTRI Support

The expanded RTRI provides two main forms of support for eligible businesses: liquidity assistance and pivot project funding.

1. Liquidity Assistance

Liquidity assistance is intended for businesses experiencing financial pressures related to tariffs and trade disruptions.

The funding can help eligible businesses maintain operations and retain employees while they respond to immediate trade challenges and plan for longer-term resilience.

Eligible businesses may receive:

Up to $2 million in non-repayable funding, covering up to 50% of eligible costs.

Liquidity support can be provided for up to 12 months, with the funding period ending no later than March 31, 2028. Eligible costs can include employee wages and salaries as well as essential recurring operating expenses such as commercial rent, utilities, business insurance, and property taxes.

2. Pivot Projects

Pivot project funding is designed for businesses undertaking new investments that improve productivity, competitiveness, and resilience.

Projects may include investments in:

• Automation and digitization
• New equipment and technology
• Productivity improvements
• Process modernization
• Market diversification
• Export development
• Supply chain resilience
• Activities that reduce exposure to trade-related risks

Businesses may receive up to $1 million in non-repayable funding for projects that provide local or regional economic benefits, with funding generally covering up to 50% of eligible project costs.

Larger-scale transformative projects may also be eligible for repayable funding of more than $1 million, with contributions of up to 75% of eligible project costs.

Eligible businesses can apply for liquidity assistance, pivot project funding, or both.

A business may receive up to $3 million in combined non-repayable funding, consisting of up to $2 million in liquidity assistance and up to $1 million for a non-repayable pivot project. When repayable funding is included, the maximum total RTRI support can reach $20 million.

Who Is Eligible?

RTRI is targeted toward small and medium-sized businesses that have been affected by tariffs or broader trade disruptions.

For businesses applying through FedNor in Northern Ontario, the business must generally:

• Be an incorporated, for-profit business
• Be located and operating in Northern Ontario
• Have a minimum of $1 million in annual revenue in one or both of its last two fiscal years
• Have been viable prior to March 21, 2025
• Demonstrate that it has been affected by ongoing trade disruptions

The program is available to businesses across tariff-impacted sectors. Indigenous businesses may also be eligible where they meet the program requirements.

How Does a Business Demonstrate Tariff Impact?

A business does not necessarily need to be a direct exporter to demonstrate that it has been affected by tariffs.

FedNor recognizes both direct and indirect exposure to trade disruptions.

For example, a business may demonstrate tariff exposure if it:

• Operates in a tariff-impacted sector
• Is part of the supply chain for an affected exporter
• Receives at least 25% of its revenue from goods ultimately exported to the United States
• Has experienced significant increases in the cost of goods or materials
• Has experienced supply chain disruptions
• Has lost revenue or customers because of trade disruptions

This is particularly relevant for businesses that may not export directly but are nevertheless experiencing higher costs or reduced demand because of changes in international trade.

What Can RTRI Funding Support?

RTRI is intended to support new investments and activities that help businesses respond to tariff pressures and become more resilient.

Technology, Automation and Productivity

Businesses can invest in equipment, technology, automation, digitization, and process modernization to improve productivity and reduce costs.

These investments can help companies become more efficient while reducing their exposure to future supply chain and trade disruptions.

Market Diversification and Export Development

RTRI can support projects that help businesses develop new markets and customers.

Market diversification activities can reduce a company’s dependence on a single market and create new opportunities in Canada or internationally.

Supply Chain Resilience

Businesses can strengthen their supply chains through initiatives designed to improve reliability and reduce exposure to trade-related disruptions.

This can include identifying alternative suppliers, improving supply chain logistics, and developing more resilient sourcing strategies.

Competitiveness and Business Modernization

RTRI can also support investments that help businesses modernize their operations and improve their ability to compete in changing markets.

The goal is not simply to offset the cost of tariffs. Rather, the program is designed to help businesses make investments that position them for greater competitiveness and resilience over the longer term.

What Costs Can Be Eligible?

Eligible costs depend on the type of project and the funding stream.

For liquidity assistance, eligible costs can include:

• Employee salaries and wages
• Commercial rent or lease payments
• Utilities
• Business insurance
• Property taxes

For pivot projects, eligible activities can include investments in equipment, technology, productivity improvements, market diversification, export development, and supply chain resilience.

Businesses should distinguish between new project costs and regular operating expenses or investments that would have occurred regardless of the tariff-related project.

What Makes a Strong RTRI Project?

Meeting the basic eligibility requirements is only the first step.

FedNor assesses applications based on the strength of the proposed project and ability to achieve results, the business’ circumstances, and its ability to successfully execute the project.

A strong RTRI application should clearly establish:

The problem: What tariff or trade-related challenge is the business experiencing?

The impact: How has the disruption affected the company’s costs, customers, supply chain, revenue, or operations?

The response: What specific investment or project will address the challenge?

The results: How will the project improve productivity, competitiveness, market diversification, or resilience?

The ability to execute: Does the business have the financial, technical, managerial, and operational capacity to complete the project?

FedNor also considers factors such as the degree of tariff impact, whether the project represents a new or expanded initiative, project readiness, the quality of the project plan and budget, the company’s ability to repay repayable funding where applicable, and the risks associated with the project.

How to Apply

Before applying, businesses should be prepared to demonstrate both their tariff-related impact and the rationale for their proposed project.

A strong application will typically involve:

1. Confirm Your Eligibility

Determine whether your business meets the basic RTRI requirements and can demonstrate direct or indirect exposure to tariff-related trade disruptions.

2. Define Your Project

Identify the specific investment or activities you want to undertake and explain how they will address the company’s challenges.

3. Establish the Business Case

Connect the tariff or trade disruption to the proposed investment. The application should clearly explain why the project is needed and what measurable outcomes it is expected to produce.

4. Prepare Your Financial Information

Businesses should be prepared to provide financial information and projections that demonstrate both the need for funding and the ability to successfully complete the project.

5. Submit the Application

Applications are assessed as they are received, subject to program criteria and funding availability. Completing an application does not guarantee approval.

Is Your Business Ready to Respond to Tariff Pressures?

For businesses facing changing trade conditions, RTRI can provide an opportunity to turn immediate tariff-related challenges into investments in productivity, diversification, technology, and long-term competitiveness.

However, securing funding requires more than demonstrating that tariffs have affected your business. The proposed project must present a clear and credible response to the challenge, supported by a strong business case, realistic budget, measurable outcomes, and evidence that the business can successfully execute the project.

If your Northern Ontario business has been affected by tariffs or trade disruptions, EVAMAX can help you assess the opportunity, develop the project rationale, and prepare a funding application that clearly connects your business challenges with the proposed investment.