Question Period Note: Regional Tariff Response Initiative

Regional Tariff Response Initiative

• The Regional Tariff Response Initiative, implemented by regional development agencies across Canada, aims to support small and medium-sized businesses negatively affected by tariffs to increase their productivity, stimulate growth, and diversify their markets.
• An engagement strategy was implemented to promote the initiative to clients and partners. More than 244 partners at the regional and provincial levels were contacted to promote the initiative.
• Given the urgency of the situation, CED processed applications quickly, enabling it to approve the first projects just a few weeks after the initiative was launched.
• As of May 5, 2026, CED had supported 260 projects totaling more than $179.5 million dollars and generating investments of $518.1 million dollars that will have a structuring effect on Quebec's economy.
• Nearly all of the available funds have been committed to projects aimed at improving productivity and market diversification among nearly 256 SMEs.

CED launched the RTRI using a hybrid approach, combining calls for projects for non-repayable grants and ongoing acceptance of contributions over $1 million. The program aimed to support Quebec SMEs affected by the tariff environment and maximize economic benefits across the regions.
Submitted projects were evaluated according to prioritization criteria aimed at maximizing benefits across all regions of Quebec for SMEs most affected by customs duties, while ensuring equitable distribution.
The criteria included the extent of the impact of tariffs on the business, membership in particularly affected sectors, regional or sectoral economic importance, and the ability of projects to improve competitiveness, diversify markets, and be completed in the short term. Attention was also paid to the relevance of costs, financial arrangements, and the integration of Canadian technologies and products.
Projects that were not selected following the analysis and prioritization process were invited, where appropriate, to consider the regular REGI program. CED also works with its federal partners, including the BDC, and provincial partners to refer clients to appropriate financing solutions.
In order to evaluate the delivery of the RTRI, CED consulted with partners to inform the strategic analysis related to the rollout of this initiative.

• On March 21, 2025, the Prime Minister announced a series of measures to support workers and businesses affected by tariffs, including one-time funding to RDAs to support businesses through the Regional Tariff Response Initiative (RTRI).
• The budget allocated to RDAs was then $450 million over three years (2025-2026 to 2027-2028) to support SMEs, supply chains, and sectors affected by the tariff war.
• On July 16, 2025, the Prime Minister announced that $150 million of the national RTRI budget would be dedicated to the steel sector.
• On September 5, 2025, the Prime Minister announced that the national RTRI budget would be increased to $1 billion over three years (an additional $550 million) and that this would include providing non-repayable contributions of up to $1 million to affected businesses in all sectors.
• On January 26, 2026, the Prime Minister announced the creation of a $150 million Food Security Fund under the RTRI. This funding is intended to combat food insecurity by boosting food production and improving the resilience of the supply chain.
• On February 5, 2026, the Prime Minister announced investments in the automotive manufacturing sector, including up to $100 million under the RTRI to support the sector so it can adapt, grow, and diversify its markets.
• The RTRI contributes to two priorities in the Prime Minister's Mandate Letter: strengthening our collaboration with our allies and trusted trading partners around the world, and building a single, unified Canadian economy by removing barriers to interprovincial trade.

Examples of projects:
• CED has approved a $1 million non-repayable grant for Normandin Inc., an industrial subcontracting manufacturer specializing in sheet metal fabrication, particularly in steel, aluminum, and stainless steel. The CED grant will enable this Centre-du-Québec-based company to acquire equipment that will improve its productivity and implement a strategy for market expansion and diversification. (Disclosed but not announced).
• CED has authorized $1 million in non-repayable assistance to Shawinigan Aluminium Inc., a company specializing in the manufacture of aluminum billets. The new equipment to be acquired will enable the client to improve its production capacity. (Announced on December 17, 2025).
• CED has authorized a non-repayable grant of $675,000 to Liard Industries Inc., located in Joliette and specializing in the machining, welding, and assembly of industrial equipment. The funding will be used to purchase equipment that will help improve the company's productivity and production capacity. (Announced on December 17, 2025).

The Regional Tariff Response Initiative (RTRI) is a national initiative delivered by seven regional development agencies (RDAs), including Canada Economic Development for Quebec Regions (CED) in Quebec. It has a budget of $1 billion, including $197 million for Quebec, and aims to support SMEs in sectors negatively affected by tariffs to increase their productivity, stimulate their growth, and diversify their markets. It offers businesses in all affected sectors non-repayable contributions of up to $1 million, or repayable contributions with flexible repayment terms. The call for proposals for grants of up to $1 million under the RTRI program has closed in Quebec, with demand exceeding the available funding by more than three times.The Regional Tariff Response Initiative (RTRI) is a national initiative delivered by seven regional development agencies (RDAs), including Canada Economic Development for Quebec Regions (CED) in Quebec. It has a budget of $1 billion, including $197 million for Quebec, and aims to support SMEs in sectors negatively affected by tariffs to increase their productivity, stimulate their growth, and diversify their markets. It offers businesses in all affected sectors non-repayable contributions of up to $1 million, or repayable contributions with flexible repayment terms. The call for proposals for grants of up to $1 million under the RTRI program has closed in Quebec, with demand exceeding the available funding by more than three times.