Canada's federal government has launched the Regional Tariff Response Initiative (RTRI) for small and medium-sized enterprises in Northern Ontario.
The tailored program has been developed to support SMEs as they respond to global uncertainties. The federal government increased the national investment in RTRI from $450 million to $1 billion over three years.
The investment is expected to improve productivity, diversify markets, enhance supply chains, and bolster domestic trade. The RTRI will back projects that can be successfully delivered between March 21, 2025 and March 31, 2028.
“We all know the challenges facing our economy as a result of tariffs, or even the threat of tariffs. The Regional Tariff Response Initiative will be an important tool to help local companies affected by tariffs withstand their economic impact, particularly businesses in Northern Ontario, such as those in the timber industry, which are especially vulnerable,” said Marcus Powlowski, member of parliament for Thunder Bay—Rainy River, in a statement.
The RTRI will help businesses to mitigate the tariff effects and adapt to long-term trade volatility through opportunities in new markets and cost reduction. The national program is being delivered through regional development agencies.
To qualify for the program, SMEs must:
- Be located and operating in Northern Ontario
- Have at least five full-time employees
- Be viable for at least three straight years
- Report at least 25 percent sales in the tariff-targeted markets or be able to demonstrate that they are negatively impacted by tariffs (increased production materials cost, supplier costs, and retail costs for the final product; lower purchase orders or sales; paying import or export tax; lost market access)
The program will prioritize assisting businesses in the steel, automotive, critical minerals, mining, forestry, clean technology, bioeconomy, and agriculture sectors. Retail and tourism-related businesses are not qualified.
The Federal Economic Development Agency for Northern Ontario is collaborating with federal, provincial, and territorial partners to address the province’s specific needs. The RTRI is one among several tariff support measures that include the Large Enterprise Tariff Loan Facility and the Business Development Bank of Canada’s Pivot to Grow initiative. The Strategic Response Fund has also been established to help trade-exposed industries.
The federal government’s overall tariff response plan has invested $6.5 billion in developing new measures to shield Canadian businesses and workers.