SECTOR GUIDE · REGIONAL TARIFF RESPONSE INITIATIVE
For Tier 1, 2 and 3 suppliers, truck and trailer component makers and aftermarket parts.
The auto sector was among the first targeted by U.S. Section 232 tariffs, and Canada responded with its own tariffs on U.S. vehicles. For parts makers, the effect depends on CUSMA status and on what your customers decide about production. RTRI can fund the payroll and overhead gap, or a pivot toward new platforms, customers and markets.
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Tariff facts checked against official sources on October 29, 2026 • Sources linked below
See all sector guidesHOW TARIFFS HIT THIS SECTOR
For most parts makers the damage comes through volume, as automakers and Tier 1s reschedule or move programs and your releases follow. Record the customer decisions and the dates they happened.
Tariff measures change often. Each item links to the official source, and rates are as published on October 29, 2026.
A 25% tariff applies to autos and trucks, with the U.S. content of CUSMA-compliant vehicles exempt. CUSMA-compliant auto and truck parts are not currently subject to it, but parts that do not qualify pay 25%. Buses face 10%.
U.S. tariffs on Canadian goods (Trade Commissioner Service)Since April 9, 2025, Canada applies 25% to non-CUSMA U.S. vehicles and to the non-Canadian, non-Mexican content of CUSMA vehicles, with a remission framework for auto producers.
Canada's tariffs on automobiles (Finance Canada)Steel goods used in automotive manufacturing have a time-limited exemption from Canada's 25% steel derivative surtax, and remission is available for some U.S. steel used in automotive manufacturing.
Canada's tariffs on steel and aluminum (Finance Canada)WHO QUALIFIES
Auto parts makers usually qualify as manufacturers in a sector hit by Section 232. Transportation and logistics firms qualify only in specific cases, so the application should focus on your manufacturing operation.
Retail, local consumer services (such as hotels, restaurants, utilities, healthcare and recreation), oil and gas extraction and construction services are generally not eligible.
Tier 1, 2 and 3 parts suppliers. Stamping, casting, machining and plastics for vehicles. Truck, trailer and bus component makers. Aftermarket parts manufacturers.
In at least one of your last two fiscal years, as an incorporated, for-profit business located and operating in the region you apply to.
Assessed through your attestation, financial statements and operating history. Businesses founded after March 21, 2025 are considered case by case.
Meet at least one test: a sector hit by Section 232 or 338 tariffs (directly or as a supplier), 25% or more of revenue from goods ultimately exported to the U.S., or harm from tariffs or the uncertainty they created.
HOW RTRI CAN HELP
Liquidity assistance covers tariff-related cash-flow shortfalls in your existing labour and overhead. Pivot projects fund net-new investment on top of the business you already run. You can apply for either, or both.
Non-repayable support for a tariff-related cash-flow shortfall in the business you already run.
Liquidity is based on 50% of average monthly payroll over the last 12 months, up to $2M, to keep production teams in place while programs are rescheduled.
Tariffs, customs duties, raw materials, inventory and debt payments are not eligible liquidity costs. Dividends are restricted while liquidity support is in place.
Funding for net-new investment on top of your existing labour, overhead and operations.
Projects need new, incremental costs and measurable results. Land and building purchases, entertainment, vehicles and refinancing are not eligible.
Up to $3M in combined non-repayable support: $2M for liquidity plus $1M for a non-repayable pivot. Total RTRI support, including repayable funding, is capped at $20M per business. The same costs cannot be funded twice.
THE EVIDENCE THAT MATTERS
Tariff impact is what gets assessed. You do not need to attach every business record, but each claim should trace back to one.
Examples of indirect tariff impactWHERE TO APPLY
RTRI is delivered by seven regional development agencies, each with its own process. You apply to the agency for the region where your business operates, and separate requests are needed for employees in more than one region.
Fillable PDF form, submitted from Adobe Acrobat Reader
CEDContact CED first; CED assesses eligibility, then sends the form
PrairiesCanDetailed application in the PrairiesCan online portal
PacifiCanPacifiCan online portal, stream “BC (PacifiCan) - RTRI-Business”
ALL REGIONSAll seven regional development agencies
SECTOR QUESTIONS
Practical answers based on the agencies' published RTRI guidance and official tariff sources.
Yes. Auto parts makers can apply to the Regional Tariff Response Initiative through their regional development agency for non-repayable liquidity support of up to $2M, pivot project funding, or both.
As of the Trade Commissioner Service's October 28, 2026 update, CUSMA-compliant auto and truck parts are not currently subject to the 25% Section 232 tariff, while non-qualifying parts are. Vehicles themselves are tariffed on their non-U.S. content, which can still reduce your customers' volumes.
FedDev Ontario funds businesses in southern Ontario, which includes Windsor-Essex, the GTA and Oakville. Parts makers elsewhere apply to the agency for their region.
Yes. You can request liquidity assistance, a pivot project, or both, up to $3M in combined non-repayable support and $20M in total RTRI funding.
LET'S FIND YOUR NEXT STEP
Tell us what has changed for your business. In a free, one-on-one consultation, we will help you understand your tariff relief funding options and next steps, whether or not you work with us.
Independent advisory by Fundspoke. We are not a government agency. Tariff measures and program terms change often; official sources, your regional agency's current rules and your contribution agreement govern. Your customs broker can confirm how tariffs apply to your products.