SECTOR GUIDE · REGIONAL TARIFF RESPONSE INITIATIVE
For job shops, CNC machining, precision parts and contract manufacturers.
Most machine shops never ship a tariffed product themselves. The tariff hits their customers in automotive, steel, machinery and equipment, and the orders slow down. RTRI recognizes that indirect impact, and its pivot stream can fund new machines and automation.
Free one-on-one consultation. Practical guidance for your business. No obligation to hire us.
Tariff facts checked against official sources on October 29, 2026 • Sources linked below
See all sector guidesHOW TARIFFS HIT THIS SECTOR
RTRI's test includes indirect exposure as a supply chain partner to an affected exporter. If a customer cut orders because of tariffs, their letter or email is often your most valuable piece of evidence.
Tariff measures change often. Each item links to the official source, and rates are as published on October 29, 2026.
U.S. tariffs of 25% on autos and non-CUSMA parts, 10% to 50% on steel and aluminum products and 50% on industrial machinery under Section 338 fall on the industries most machine shops serve.
U.S. tariffs on Canadian goods (Trade Commissioner Service)Steel, aluminum or copper parts on the U.S. Section 232 derivative lists can face 10% to 50% on their full value, unless metal content is under 15% by weight.
U.S. tariffs on Canadian goods (Trade Commissioner Service)Canada applies 25% or 50% to many U.S. steel and aluminum products and 15% to U.S. interchangeable tools, and a 25% surtax covers steel derivatives from any country.
Complete list of U.S. products subject to counter tariffs (Finance Canada)WHO QUALIFIES
Machine shops usually qualify as suppliers in a tariff-impacted supply chain. You still need $1M+ in revenue in one of the last two fiscal years and a documented link between tariffs and your results.
Retail, local consumer services (such as hotels, restaurants, utilities, healthcare and recreation), oil and gas extraction and construction services are generally not eligible.
Job shops and CNC machining. Precision and contract manufacturers. Shops supplying automotive, aerospace, energy or equipment makers. Welding and fabrication shops.
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.
Skilled machinists are hard to replace. Liquidity pays 50% of average monthly payroll over the last 12 months, up to $2M and capped at your demonstrated need, so you can keep them while you replace lost work.
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
FedNorFedNor self-service portal, after a call with a FedNor officer
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”
ACOAMyACOA Client Portal, after talking to your nearest ACOA office
ALL REGIONSAll seven regional development agencies
SECTOR QUESTIONS
Practical answers based on the agencies' published RTRI guidance and official tariff sources.
Potentially, yes. RTRI recognizes indirect exposure, for example as a supplier to an affected exporter, and accepts lost customers or revenue and higher input costs caused by tariffs. The application needs evidence that links your results to tariffs.
It can, through a pivot project. Equipment and technology adoption, including automation, are eligible activities. Projects up to $1M can be non-repayable at up to 50% of eligible costs, and most agencies allow project start dates up to 12 months before you apply.
Show the change in sales by customer around the tariff dates, and back it with customer correspondence that cites tariffs, cancelled or reduced purchase orders, and any layoffs or Work-Sharing. A clear before-and-after picture matters more than volume of paperwork.
That is what liquidity assistance is for. It is based on 50% of your average monthly payroll over the last 12 months, for up to 12 months, capped at your demonstrated need and $2M. It is non-repayable.
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.