SECTOR GUIDE · REGIONAL TARIFF RESPONSE INITIATIVE

Tariff relief for Canadian manufacturers

Liquidity and pivot funding for companies that make things.

The Regional Tariff Response Initiative is aimed at manufacturers, suppliers and value-added businesses in tariff-impacted sectors. Whether tariffs hit your exports, your customers or the inputs you buy, RTRI can cover payroll and overhead in the business you already run, or a net-new investment that changes how you compete.

How tariffs hit this sector

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 guides

HOW TARIFFS HIT THIS SECTOR

The tariffs that affect
manufacturing.

For most manufacturers the impact shows up in three places: export orders that slow or stop, customers that cut volumes because their own exports are hit, and U.S.-sourced inputs that cost more. RTRI accepts all three, as long as the link to tariffs is documented.

Tariff measures change often. Each item links to the official source, and rates are as published on October 29, 2026.

U.S. Section 232 sectoral tariffs

Steel, aluminum and copper products face 10% to 50% on their full value. Autos, trucks and auto parts that are not CUSMA-compliant face 25%, softwood lumber 10%, and upholstered furniture, kitchen cabinets and vanities 25%.

U.S. tariffs on Canadian goods (Trade Commissioner Service)

U.S. Section 338 tariff

A 50% tariff with no CUSMA exemption covers Canadian plastics, furniture, electronics and ICT products, paper products, industrial machinery, wood products, textiles and apparel, and sports equipment. Since September 15, 2026 it stacks on Section 232 where both apply.

U.S. tariffs on Canadian goods (Trade Commissioner Service)

Canadian counter-tariffs on U.S. inputs

Since September 8, 2026, Canada applies 15%, 25% and 50% tariffs to $27.6 billion of U.S. goods, focused on steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. Many U.S.-sourced inputs now cost more.

Counter-tariffs effective September 8, 2026 (Finance Canada)

WHO QUALIFIES

Who this guide
is for.

RTRI normally supports manufacturers, suppliers and value-added businesses operating in tariff-impacted sectors. You do not need to export directly. A supplier to an affected exporter can qualify.

Retail, local consumer services (such as hotels, restaurants, utilities, healthcare and recreation), oil and gas extraction and construction services are generally not eligible.

Businesses we see in this sector

Metal, plastics, wood and paper product manufacturers. Machinery, equipment and electrical manufacturers. Food, beverage and consumer goods processors. Suppliers and value-added firms in a manufacturer's supply chain.

$1M+ in annual revenue

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.

Viable before tariffs

Assessed through your attestation, financial statements and operating history. Businesses founded after March 21, 2025 are considered case by case.

A documented tariff impact

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
and pivot projects.

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.

01 / EXISTING LABOUR AND OVERHEAD

Liquidity assistance

Non-repayable support for a tariff-related cash-flow shortfall in the business you already run.

Funding
Up to $2M, non-repayable
Basis
50% of average monthly payroll, capped at your demonstrated 12-month need
Period
Up to 12 months, ending by March 31, 2028

For manufacturing

Liquidity covers a tariff-related cash-flow shortfall in your existing operation. It is based on 50% of average monthly payroll over the last 12 months, with rent, utilities, insurance and property taxes considered where needed, up to $2M non-repayable.

Tariffs, customs duties, raw materials, inventory and debt payments are not eligible liquidity costs. Dividends are restricted while liquidity support is in place.

02 / NET-NEW INVESTMENT

Pivot projects

Funding for net-new investment on top of your existing labour, overhead and operations.

Non-repayable
Up to $1M; up to 50% of eligible costs
Repayable
Over $1M; up to 75% of eligible costs, interest-free
Completion
By March 31, 2029

Typical projects in this sector

  • Automation or robotics on a bottleneck line to lower unit costs
  • New equipment to make products for Canadian or non-U.S. customers
  • Re-tooling to make a component in-house instead of buying it from the U.S.
  • ERP, quality or digital systems that support new markets
  • Certifications and market development outside the U.S.

Projects need new, incremental costs and measurable results. Land and building purchases, entertainment, vehicles and refinancing are not eligible.

How the limits fit together

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

What to gather
before you apply.

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 impact
  • Export sales by customer and product before and after the tariff dates
  • Cancelled or reduced purchase orders and customer emails that cite tariffs
  • Supplier price notices and invoices showing tariff-related increases
  • Customs entries or broker statements showing duties paid
  • Layoffs, hiring freezes or EI Work-Sharing at your plant

SECTOR QUESTIONS

Tariff relief for
manufacturing, answered.

Practical answers based on the agencies' published RTRI guidance and official tariff sources.

Can a manufacturer that doesn't export to the U.S. get tariff relief funding?

Potentially, yes. RTRI recognizes indirect exposure, including supplying an affected exporter, higher input costs caused by tariffs, supply chain disruption, and lost customers or revenue. The application has to show a documented link between tariffs and your results.

What is the difference between liquidity assistance and a pivot project?

Liquidity assistance covers a tariff-related cash-flow shortfall in your existing labour and overhead, based on your last 12 months of payroll. A pivot project funds net-new investment on top of the existing business, such as equipment, automation or new markets. You can apply for either, or both, up to $3M in combined non-repayable support.

Does tariff relief funding pay for new equipment?

Yes, through a pivot project. Equipment and technology adoption, including automation and digitization, are eligible activities. Projects up to $1M can be non-repayable at up to 50% of eligible costs, and larger projects can receive interest-free repayable funding at up to 75%. Land and building purchases are not eligible.

Which agency does a manufacturer apply to?

The regional development agency where your business operates: FedDev Ontario, FedNor, CED, ACOA, PrairiesCan, PacifiCan or CanNor. If you have employees in more than one region, separate requests are needed for each.

Are the tariffs we pay reimbursed?

No. Tariffs, customs duties, raw materials, inventory and debt payments are not eligible liquidity costs. Duties paid are useful evidence of impact, but they are not repaid by RTRI.

LET'S FIND YOUR NEXT STEP

Tariffs changed the plan.
Let's work on the response.

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.