Regional Tariff Response Initiative in Atlantic Canada

Overview of the Regional Tariff Response Initiative in Atlantic Canada program:

The RTRI is designed to assist SMEs and organizations across Atlantic Canada affected directly or indirectly by U.S. and Chinese tariffs or Canada’s countermeasures. Originally launched with $450 million in funding (including $150 million dedicated to the steel sector), it has been expanded to $1 billion, including $80 million allocated to ACOA for Atlantic Canada. The program supports projects that modernize operations, improve productivity, strengthen domestic supply chains, and diversify markets. It complements other federal initiatives such as the Sectoral Alliances program, the Large Enterprise Tariff Loan Facility, BDC’s Pivot to Grow initiative, and the Strategic Response Fund. Eligible applicants include for-profit businesses, co-operatives, Indigenous-owned enterprises, and non-profit organizations that demonstrate tariff impacts and alignment with the Regional Economic Growth through Innovation (REGI) program objectives. The initiative provides both repayable and non-repayable contributions, with special priority for Canadian-owned SMEs that create regional economic benefits. Projects are assessed for alignment with program goals, economic benefits, demonstrated tariff impact, and completion feasibility. Funding may be used for technology adoption, digitization, supply chain optimization, market expansion, R&D, reshoring activities, or recruitment of skilled personnel. Eligible costs include capital expenses, labour, materials, consultancy, and market development activities. Retroactive costs up to 12 months before application submission are permitted, but not earlier than March 21, 2025. Projects must conclude by March 31, 2028.

Benefits of the Regional Tariff Response Initiative in Atlantic Canada program:

• Repayable contributions to eligible businesses
• Non-repayable contributions up to $1 million may be made to eligible businesses
• Non-repayable contributions may be made to eligible not-for-profit entities

Eligibility criteria of the Regional Tariff Response Initiative in Atlantic Canada program:

• Eligible recipients may include:
• Incorporated companies, corporations, co-operatives, or individuals operating a business.
• Indigenous-owned businesses and organizations
• Non-profit organizations, industry and sector associations, boards of trade, and provincial entities that support affected businesses
• Eligible applicants include businesses and not-for-profit organizations and must demonstrate the following:
• Meet the REGI program objectives; and
• Have been directly or indirectly affected by trade disruptions, including newly imposed U.S. or Chinese tariffs, or Canadian counter-tariffs; and
• Were viable prior to March 21, 2025; and
• Meet one of the following criteria: Have at least 25% of sales in markets affected by the tariffs; or Are able to demonstrate a significant likelihood of being negatively affected by the tariffs or the uncertainty they may create, such as Increased costs for production materials or suppliers, Higher retail prices for finished products, Reduced purchase orders or sales, New import/export taxes or loss of market access and Other evidence of negative impact.
• For businesses seeking non-repayable funding, priority eligibility for ACOA will be based on factors such as:
• Canadian-owned businesses located in Atlantic Canada
• Manufacturing businesses
• Projects generating regional economic benefits (jobs, value-added, supply-chain contribution)
• Capacity to complete projects on time and secure non-governmental funding
• Integration of Canadian technologies/products within the projects
• Key role in the regional economy (major employer, strategic supplier)
• Measurable impacts from tariffs (lost revenue, higher costs, affected suppliers, export losses)