FedNor has announced that it is launching a new initiative to help businesses dealing with tariffs.
Prime Minister Mark Carney announced the Regional Tariff Response Initiative on September 5, amongst a host of other measures to protect the Canadian economy and now the program is launching in northern Ontario.
The initiative is designed to help small and medium-sized businesses mitigate the effects of a trade war with the United States.
“Northern Ontario businesses are ready to lead, but they need the right tools to stay ahead as the economy rapidly shifts,” said the Minister responsible for FedNor, Patty Hajdu. “The Regional Tariff Response Initiative is about unlocking that potential. It’s about helping local companies scale up, reach new markets, and build stronger supply chains.”
A total of $19 million was earmarked for the project when it first launched, but that total has now been doubled to $38 million as of Friday.
The minister also noted that if the need exceeds the funding amount, they will top up the initiative with more funding.
“This is a serious time and it requires a serious response and regional economic development agencies like FedNor have been empowered to work with the small and medium-sized businesses that are feeling the pinch and are at risk of losing business,” added Hajdu.
“Ultimately, when you lose business as a small business or a medium-sized business, it puts the success of your entire operation at risk.”
The funding for the initiative is coming through Canada’s tariff response plan, which includes $6.5 billion in new measures to protect Canadian businesses and workers.
Eligible applicants include incorporated small and medium-sized enterprises ( SMEs ), including Indigenous (First Nation/Métis/Inuit) businesses that meet the following parameters:
- Located and operating in Northern Ontario.
- Employ five or more full-time employees.
- Viable for at least three consecutive years.
- Have minimum sales of 25 per cent in the markets targeted by the tariffs, OR be able to demonstrate being negatively affected by the tariffs, including, but not limited to:
- Increased cost for the purchase of production materials
- Increased costs from suppliers
- Increased retail cost of the finished product
- Reduced purchase orders or sales
- Addition of an import or export tax
- Loss of market access
- Other evidence demonstrating that the business has been negatively impacted.
Priority may be given to businesses operating in the steel, automotive, critical minerals, mining, forestry, clean technology, bioeconomy, and agriculture sectors.
Retail and those operating in the tourism sector are not eligible under this program.
More information on the program can be found by clicking here.
