Regional Tariff Response Initiative in Quebec

Overview of the Regional Tariff Response Initiative in Quebec program:

The Regional Tariff Response Initiative (RTRI) aims to support manufacturing small and medium-sized enterprises (SMEs) in Quebec that have suffered from recent trade tariffs imposed by the United States, China, or Canadian countermeasures. It enables these businesses to invest in strategic projects that strengthen competitiveness, improve productivity, and diversify markets to mitigate long-term effects of global tariff challenges. The program provides both non-repayable and repayable financial assistance for eligible projects that directly address tariff-related losses or disruptions. The initiative emphasizes resilience and modernization by funding technological adaptation, automation, digitization, market expansion efforts, and supply chain optimization. It is structured to complement existing federal, provincial, and territorial tariff mitigation programs, ensuring SMEs remain viable and globally competitive. All supported projects must begin before March 31, 2026, and conclude no later than March 31, 2028. Applications are evaluated based on the degree of tariff impact, the project’s structural benefits, alignment with regional and sectoral priorities, and the applicant’s demonstrated need and capacity to complete the project within the designated period.

Benefits of the Regional Tariff Response Initiative in Quebec program:

• Non-repayable assistance:
• Up to $1 million for structural productivity or hybrid (productivity + market diversification) projects.
• Up to $300,000 for market diversificationonly projects.
• Minimum contribution: $100,000.
• Maximum contribution rate: 50% of eligible costs.
• Repayable assistance:
• May exceed $1 million for large-scale investment projects in productivity and diversification.
• Maximum contribution rate: 75% of eligible costs.
• Retroactive costs may be considered up to 12 months before the signed application (no earlier than March 21, 2025).

Eligibility criteria of the Regional Tariff Response Initiative in Quebec program:

• To qualify, applicants must:
• Be a manufacturing SME with fewer than 500 employees.
• Operate in Quebec and have been in business for at least 3 years.
• Have annual revenues of $2 million or more in the most recent fiscal year.
• Be financially viable prior to March 21, 2025, as proven by financial statements.
• Demonstrate negative tariff impacts from duties imposed by the U.S., China, or Canadian countermeasures, supported by evidence such as:
  • Decline in revenue or profitability
  • Increased operational costs
  • Loss of customers or contracts
• Projects are prioritized based on the magnitude of tariff impact, sectoral significance, employment contribution, project structure, use of Canadian technology, financial soundness, and readiness to begin promptly.