Question Period Note: CanNor - Regional Tariff Response Initiative (RTRI) in the territories

Regional Tariff Response Initiative (RTRI) in the territories

• The Government of Canada is focused on protecting Canadian industries, reinforcing the competitiveness of Canadian businesses and building one strong Canadian economy.

• The Regional Tariff Response Initiative (RTRI) is being delivered by Canada’s Regional Development Agencies to support small- and medium-sized businesses affected by tariffs, helping them respond, adapt, and compete amid shifting market conditions.

• Through RTRI, CanNor will help northern small- and medium-sized businesses respond to trade challenges, adapt to new realities, and build for the future.

Background:

• In March 2025, the government announced the Regional Tariff Response Initiative (RTRI), a $450 million fund to support support small- and medium-sized businesses (SMEs) directly or indirectly impacted by U.S. and China tariffs, so they could step up investments to diversify their products and markets as well as adopt innovative technologies to boost competitiveness. In July 2025, the government announced that up to $150 million of the RTRI would be targeted to projects in the steel sector.

• On September 5, 2025, the Prime Minister announced that the RTRI would be more than doubled going from $450 million to $1 billion over three years. The announcement included the ability for regional development agencies to provide non-repayable contributions of up to $1 million to businesses in all impacted sectors in order to allow more small- and medium-sized businesses (SMEs) to invest in their growth, diversify markets, create new revenue sources by adopting innovative technologies and bringing new products and services to market.

• On May 4, 2026, the Government of Canada announced an additional $500 million in funding through the RTRI. There is now $1.5-billion available to help businesses overcome trade disruptions. This includes support for businesses across all sectors, including in the steel, automotive and food security industries. It invests in targeted, time-sensitive activities that boost productivity, lower costs, strengthen supply chain resilience, and open doors to new markets, enhancing overall competitiveness

• The RTRI is designed to help impacted SMEs and sectors to boost productivity, catalyze growth and diversify markets by helping businesses to undertake projects to raise productivity, enhance competitiveness and reduce costs, thereby mitigating tariff impacts. Additionally, it seeks to strengthen resiliency among Canadian businesses through more robust domestic supply chains, enhanced internal trade, market diversification and future-proofing their operations.

• Eligible recipients include:
o Incorporated companies, corporations and co-operatives
o Indigenous-owned businesses and organizations
o Non-profit organizations that support businesses

• Applicants must demonstrate that they are directly or indirectly impacted by the ongoing trade disruptions, including imposed tariffs by the U.S. and China and Canadian counter-tariffs, and show that at least 25% of their sales are to the U.S. and/or to China, or demonstrate that they, or the businesses they support, have been directly affected.
 

RTRI responds to Northern realities:

• RTRI is designed to be flexible and responsive to the specific needs of sectors in each region of the country.

• During this period of global trade disruptions, CanNor is on the ground in Nunavut, the Northwest Territories and the Yukon working closely with federal, territorial, and Indigenous partners to respond to the unique needs of northern communities.

• Between September 2025 and March 2026, CanNor invested over $4.6 million through RTRI. The investments are estimated to create more than 40 jobs, contributing to economic stability and workforce retention in the North.