Enhanced Regional Tariff Response Initiative offers support for southern Ontario businesses

On August 25, 2026, the Government of Canada introduced a $7.5 billion package of new and enhanced measures to provide fast, simple and agile support to Canadian workers and businesses. This builds on the nearly $25 billion in support provided by the government since the implementation of U.S. tariffs.

As part of this package, the government is bolstering the Regional Tariff Response Initiative, delivered by Canada’s seven Regional Development Agencies, with an additional $1.5 billion investment. This brings the initiative’s total funding to $3.45 billion.

In southern Ontario, the initiative will continue to be delivered by the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) and will help small and medium-sized enterprises respond to tariff pressures.

Key enhancements‍

Up to $3 million in non-repayable contributions per business, of which up to $2 million can be used for liquidity support to help businesses manage tariff-related pressures.
Expanded eligibility to include businesses with a minimum annual revenue of $1 million that can demonstrate tariff impacts.

The Regional Tariff Response Initiative will also continue to support eligible businesses through repayable contributions for projects that help companies adapt, grow and compete in response to changing trade and market conditions.

Applications are open

FedDev Ontario is committed to helping small and medium-sized enterprises respond to the rapidly changing global trade environment.

The intake is open, and businesses can apply for funding at any time. Funding will remain available until FedDev Ontario’s allocation is fully committed. Interested businesses are encouraged to apply early.

FedDev Ontario will also host virtual bilingual information sessions. Visit the FedDev Ontario website for upcoming session details, eligibility requirements, application guidelines and information on how to apply.

Additional tariff relief measures

The Government of Canada has introduced several other tariff relief measures, including:

A new $500 million liquidity stream under the Business Development Bank of Canada’s Pivot to Grow program.
The new Canada Strong Diversification Fund, backed by $2 billion in funding.
Enhancements to the Large Enterprise Tariff Loan facility.
A new suite of $3.5 billion in Rapid Response Supports for Workers and Employers.

Additional information about these programs is available at Canada.ca/CanadaStrong.

Local support and resources

Additional tariff and trade resources are available through SLEP’s Tariff and Trade Support page.

SLEP is here to help local businesses respond to changing trade conditions. Our team can assist with understanding tariff implications, exploring new markets and connecting businesses with available resources and support programs.

Information provided by FedDev Ontario.