Regional Tariff Response Initiative in Northern Ontario

Overview of the Regional Tariff Response Initiative in Northern Ontario program:

The Regional Tariff Response Initiative (RTRI), administered by FedNor, is part of the Government of Canada’s broader $6.5 billion tariff response plan aimed at defending Canadian businesses and workers from the impacts of international trade pressures. This initiative focuses on helping tariff-affected SMEs and sectors in Northern Ontario adapt and remain competitive by funding projects that improve productivity, catalyze growth, and open new markets. Eligible projects must be executable within the initiative’s timeframe (March 21, 2025 – March 31, 2028) and demonstrate tangible benefits for regional economic development. The RTRI supports initiatives such as automation, digitization, market diversification, reshoring of operations, and supply chain strengthening to foster business resilience and internal trade. Priority is given to firms in steel, automotive, critical minerals, mining, forestry, clean technology, bioeconomy, and agriculture sectors, all of which are central to Northern Ontario’s economy. Retail and tourism-based businesses are excluded. FedNor assesses each application based on a project’s potential to mitigate tariff impacts, boost productivity, enhance competitiveness, and strengthen domestic market linkages. Projects are also evaluated for their use of Canadian content, quality of business planning, and overall readiness for implementation. This initiative complements existing federal supports under Canada’s regional development network, ensuring that SMEs across Northern Ontario can access resources to sustain and grow in a shifting trade environment.

Benefits of the Regional Tariff Response Initiative in Northern Ontario program:

• Non-repayable contributions: Up to $1 million, covering 50% of eligible project costs.
• Repayable contributions: Over $1 million, covering up to 75% of eligible project costs.
• Eligible costs include labour, materials, capital purchases (machinery, equipment, infrastructure), consultancy and advisory fees, and market expansion costs.
• Retroactive eligibility: Costs may be claimed for up to 12 months prior to application receipt, but not before March 21, 2025.
• Project completion deadline: March 31, 2028.

Eligibility criteria of the Regional Tariff Response Initiative in Northern Ontario program:

• To qualify, applicants must:
• Be an incorporated SME located and operating in Northern Ontario.
• .2. Employ five or more full-time employees.
• Have been viable for at least three consecutive years.
• Show that at least 25% of sales are to markets affected by tariffs (U.S. or China) or demonstrate tariff-related negative impacts, such as:
  • Increased production or supplier costs
  • Reduced sales or purchase orders
  • New import/export taxes
  • Loss of market access
  • Other measurable impacts from tariff pressures
• Priority sectors: Manufacturing, steel, automotive, critical minerals, mining, forestry, clean technology, bioeconomy, and agriculture.
• Ineligible sectors: Retail and tourism.