Regional Tariff Response Initiative: Funding to Help Canadian Businesses Adapt and Grow

Canadian businesses are facing increased uncertainty from tariffs, changing trade conditions, and disruptions across global supply chains. The Regional Tariff Response Initiative (RTRI) provides funding to help eligible businesses respond to these challenges, strengthen their competitiveness, and build greater resilience.

Delivered through Canada’s Regional Development Agencies (RDAs), the RTRI supports small and medium-sized enterprises (SMEs) that have been affected by tariffs or changing trade conditions. Funding can help businesses improve productivity, diversify markets, strengthen supply chains, and pursue investments that position them for long-term growth.

What is the Regional Tariff Response Initiative?

The Regional Tariff Response Initiative is part of the Government of Canada’s broader response to ongoing trade disruptions.

The initiative provides $3.45 billion over four years to help Canadian SMEs adapt to changing market conditions, increase productivity, diversify into new markets, strengthen domestic supply chains, and address certain liquidity pressures.

The program is delivered regionally, meaning that eligibility requirements, funding structures, eligible costs, and application processes can vary depending on where your business operates.

Regional streams include:

What Can RTRI Funding Support?

The initiative is designed to help businesses respond to tariff-related pressures while becoming more competitive and resilient.

Eligible projects may include activities related to:

Productivity & Technology Adoption
Investments in new technologies, automation, equipment, and processes that can improve productivity and reduce costs.

Market Diversification
Projects that help businesses enter new domestic or international markets and reduce dependence on markets affected by tariffs.

Supply Chain Resilience
Activities that strengthen domestic supply chains, develop new suppliers, or improve the reliability of existing supply networks.

Business Expansion & Growth
Investments that allow businesses to expand operations, increase production capacity, or pursue new commercial opportunities.

Innovation & R&D
Projects that support the development of new products, processes, technologies, or capabilities.

Liquidity Support
Under the latest expansion of the initiative, additional support is being introduced for demonstrated liquidity needs. Effective September 2026, the maximum non-repayable contribution is increasing from $1 million to $3 million, including eligible liquidity support, with liquidity support available up to $2 million.

Who Can Apply?

RTRI is primarily designed to support Canadian small and medium-sized businesses affected by tariffs and trade disruptions.

However, eligibility requirements vary by region.

For example, FedNor’s Northern Ontario stream requires an incorporated SME to be located and operating in Northern Ontario and to either have at least 25% of sales in tariff-targeted markets or demonstrate that it has been negatively affected by tariffs.

Similarly, Southern Ontario’s program is available to incorporated for-profit businesses located and operating in Southern Ontario, with separate eligibility provisions for not-for-profit organizations that support SMEs.

Because requirements differ between regions, businesses should review the specific RTRI stream available in their area before beginning an application.

How Much Funding Can You Receive?

The amount and type of funding available depends on the region, applicant, and proposed project.

The program also provides separate funding structures for eligible not-for-profit organizations.

With the September 2026 expansion, the national initiative is increasing the maximum non-repayable contribution to $3 million, while adding liquidity support of up to $2 million.

How Are RTRI Projects Evaluated?

Funding is not automatically awarded simply because a business has experienced tariffs.

Applications are assessed based on factors such as:

The degree to which the business has been affected by tariffs
The strength and readiness of the proposed project
The company’s financial capacity
The expected economic benefits
The project’s ability to improve productivity or competitiveness
Opportunities for market diversification
Supply chain benefits
The company’s ability to successfully complete the project

FedNor, for example, evaluates the project’s readiness, the applicant’s financial capacity, tariff impact, expected results, risk mitigation, and benefits to Northern Ontario.

Which RTRI Program Is Right for Your Business?

Because RTRI is delivered through Canada’s regional development agencies, the program you apply to depends on where your business operates.

Explore the regional programs:

Atlantic Canada
Learn about RTRI funding available through the Atlantic Canada Opportunities Agency.

Quebec
Explore the RTRI program delivered through Canada Economic Development for Quebec Regions.

Northern Ontario
Discover RTRI funding is available through FedNor.

Southern Ontario
Explore RTRI funding is available through FedDev Ontario.

Prairie Provinces
Learn about funding available through Prairies Economic Development Canada.

British Columbia
Explore RTRI funding through Pacific Economic Development Canada.

Yukon, Northwest Territories & Nunavut
Discover RTRI opportunities through the Canadian Northern Economic Development Agency.