Question Period Note: FedNor U.S. Tariffs Response

Support for Northern Ontario businesses impacted by tariffs

• Northern Ontario faces specific challenges and vulnerabilities due to limited market diversification potential and lagging productivity, making the region particularly susceptible to tariffs and impacts of trade disputes.
• Small and medium-sized enterprises (SMEs) across various sectors are increasingly focused on diversification strategies to strengthen resilience. These efforts include expanding supply chain networks to mitigate risk and pursuing new market opportunities both domestically and internationally.
• The $1 billion Regional Tariff Response Initiative (RTRI) is being delivered by Canada’s RDAs to support SMEs affected by tariffs, helping them respond, adapt, and compete amid shifting market conditions.
• In Northern Ontario, FedNor is delivering $42 million over three years under the RTRI to help impacted businesses diversify markets, boost productivity, strengthen supply chains, and unlock new opportunities for growth at home and abroad.
• Mr. Speaker, I am proud to report that as of February 24, 2026, FedNor received 55 applications under the RTRI, with 25 approved projects representing $17.9 million in funding across Northern Ontario.

The Regional Tariff Response Initiative (RTRI) is a $1 billion fund delivered by Canada’s Regional Development Agencies (RDAs) over three years to support small and medium-sized enterprises (SMEs) directly or indirectly impacted by U.S. and China tariffs.
The RTRI funds projects that can deliver results quickly, helping Canadian businesses adapt to the varied impacts of tariffs. The initiative enables SMEs to advance strategic investments that modernize their operations, enhance productivity, and support the adoption of innovative technologies to future‑proof their growth. By strengthening and leveraging domestic supply chains, the measure encourages greater internal trade and supports more resilient regional economies. At the same time, it helps firms diversify their products and expand into new markets, including domestically, reducing their exposure to trade risks and reinforcing Canada’s overall supply chain and trade resilience.
RTRI complements other federal, provincial and territorial tariff support programs, and includes targeted investments of:
• up to $150 million to support Canada’s steel sector, which is facing significant global pressure.
• $150 million allocated to a Food Security Fund to address food insecurity by strengthening domestic food production and improving supply chain resilience.
• up to $100 million to help the auto industry adapt, grow, and diversify to new markets
Program criteria vary by region, including sectors considered priority, funding maximums, and criteria for non-repayable contributions. In Northern Ontario, FedNor:
• Focuses on priority sectors, such as steel, automotive, critical minerals, mining, forestry, clean technology, bioeconomy, and agriculture;
• Provides up to of $1 million dollars in non-repayable contributions toward eligible projects; and
• Focuses on non-repayable contributions and businesses that prioritize Canadian content.

• The RTRI was designed to be flexible and responsive to the specific needs of sectors in each region of the country.
• FedNor received dedicated funding under the RTRI to support businesses in Northern Ontario, including those aligned with priority sectors identified in the Prosperity and Growth Strategy for Northern Ontario, such as steel, automotive, critical minerals, mining, forestry, clean technology, bioeconomy, and agriculture, prioritizing single-industry towns and small, rural, remote, First Nation, communities where the economic impacts are most pronounced.
• RDAs are on the ground, helping businesses succeed. They collaborate with federal, provincial, and territorial partners and use complimentary and flexible programs to meet the unique needs of their regions.