RTRI Frequently Asked Questions

Overview

1. What is the Regional Tariff Response Initiative (RTRI)?

The Regional Tariff Response Initiative (RTRI) is a federal program designed to help small and medium-sized enterprises (SMEs) and non-profit organizations supporting businesses that are impacted by trade disruptions, including U.S. or Chinese tariffs and Canadian countermeasures. It allows businesses to modernize, improve productivity, strengthen domestic supply chains, and reduce exposure to trade risks.

Originally announced in March 2025 with $450 million in funding, including $150 million specifically targeted to the steel sector, the RTRI has now been more than doubled, to $1 billion over three years. This expansion allows SMEs in all impacted sectors to access non-repayable contributions of up to $1 million, enabling them to grow, diversify markets, adopt innovative technologies and introduce new products and services.

The RTRI complements other federal tariff support programs such as Sectoral Alliances, the Large Enterprise Tariff Loan Facility, the Business Development Bank of Canada’s Pivot to Grow initiative, and the Strategic Response Fund. Together, these measures strengthen Canada’s industrial base and support jobs.

2. What are tariffs and how do they affect my business?

A tariff, also called an import or customs duty, is a tax that a country imposes on products imported from other countries. Tariffs make imported products more expensive than similar domestic products and are typically collected at the border. They can increase costs for production materials, reduce sales, and create uncertainty for businesses that rely on trade.

3. Where can I find information about what the Government of Canada is doing about tariffs?

For U.S. tariffs:

• Visit the Department of Finance's website for Canada’s response to U.S. tariffs on Canadian goods.
• You may be eligible for a remission, which helps reduce or refund certain duties if you can show why you cannot source supplies from Canada or other countries.
• Programs such as the Canada Border Services Agency's (CBSA) Duties Relief Program and Duty Drawback Program may let you bring goods into Canada without paying tariffs, or get a refund later if the goods were exported.

For Chinese tariffs:

• Contact Agriculture and Agri-Food Canada for export information and support for Canadian companies exporting to China.
• Remission may be available for certain Chinese goods. Email remissions-remises@fin.gc.ca for details.
• Programs such as Sustainable Canadian Agricultural Partnership, the AgriMarketing Program, AgriStability, and the AgriCompetitiveness Program can support business growth and market expansion.
• CBSA's Duties Relief and Duty Drawback programs may also apply.

4. Why have funds been set aside for the steel sector, but not other hard-hit industries?

The steel sector was targeted nationally because of the number of businesses affected and its economic impact. The RTRI is flexible, however, and responsive to regional needs. ACOA has also received funding to support all affected sectors and continues to address trade-related challenges for all industries.

5. How much funding does ACOA have for the RTRI?

ACOA has received $80 million to ensure that Atlantic Canadian SMEs can mitigate the impacts of the tariffs and thrive.

6. How will ACOA ensure equitable distribution of funds across the Atlantic region?

Each application is evaluated according to the RTRI criteria, ensuring a fair process while taking into account the unique circumstances of each area. ACOA leverages its experience with the Atlantic client base to support balanced and equitable funding decisions.

7. Where can I get help and information on the RTRI?

You can get help through:

• Your program officer, who can guide you on demonstrating tariff impacts, eligibility factors and the application process.
• If you do not have a program officer, contact your local office at 1-888-576-4444 or through ACOA’s website, and you will be put in contact with one.

Eligible Recipients

8. Am I eligible for funding under the RTRI?

Entities currently eligible under the REGI program authorities that are directly or indirectly impacted, or that are supporting businesses impacted, by the ongoing trade challenges, including tariffs imposed by the U.S. and China and Canadian counter-tariffs.

Eligible recipients may include:

• Incorporated companies, corporations, co-operatives, or individuals operating a business
• Indigenous-owned businesses and organizations
• Non-profit organizations, industry and sector associations, boards of trade, and provincial entities that support affected businesses

9. Who can apply for RTRI funding?

Eligible applicants include businesses and not-for-profit organizations. You must demonstrate that you, or the businesses you support:

• Meet the REGI program objectives; and
• Have been directly or indirectly affected by trade disruptions, including newly imposed U.S. or Chinese tariffs, or Canadian counter-tariffs; and
• Were viable prior to March 21, 2025; and
• Meet one of the following criteria:
  • Have at least 25% of sales in markets affected by the tariffs; or
  • Are able to demonstrate a significant likelihood of being negatively affected by the tariffs or the uncertainty they may create, such as:
    • Increased costs for production materials or suppliers
    • Higher retail prices for finished products
    • Reduced purchase orders or sales
    • New import/export taxes or loss of market access
    • Other evidence of negative impact

For businesses seeking non-repayable funding, priority eligibility for ACOA will be based on factors such as:

• Canadian-owned businesses located in Atlantic Canada
• Manufacturing businesses
• Projects generating regional economic benefits (jobs, value-added, supply-chain contribution)
• Capacity to complete projects on time and secure non-governmental funding
• Integration of Canadian technologies/products within the projects
• Key role in the regional economy (major employer, strategic supplier)
• Measurable impacts from tariffs (lost revenue, higher costs, affected suppliers, export losses)

10. Can my business receive RTRI non-repayable funding more than once?

No. A business may only access a non-repayable contribution from ACOA’s RTRI once during the initiative.

11. Is loan forgiveness a consideration?

No. Repayable contributions provided by ACOA cannot be forgiven. If you have received a repayable contribution, you are expected to fulfill the repayment terms. Please communicate with your program officer if you have questions or require further guidance.

12. How can I apply for funding?

If you are unsure whether the Regional Tariff Response Initiative is right for you, please speak with your local ACOA program officer, or contact the office nearest you. If you're ready to apply, send us your application through the Application for Financial Assistance page.

Activities and Costs

13. What types of activities are eligible for funding?

Eligible activities include those currently eligible under REGI and that align with the objectives of boosting productivity, catalyzing growth, and diversifying markets of SMEs and sectors impacted by tariffs and/or counter-tariffs. Examples include:

• Digitization, automation, or technology integration investments that enhance productivity and competitiveness
• Market diagnostics, development, and expansion activities (e.g., trade missions, diversifying customer base, reducing exposure)
• Establishing strategic alliances, optimizing supply chains, and ensuring compliance with standards to enhance domestic and/or global presence
• Strengthening domestic supply chains and facilitating internal trade to improve domestic market resilience and reliability
• Business support, market development, and advisory services (e.g., guidance from sectoral intermediary organizations)
• Reshoring or onshoring of production, R&D mandates, and/or recruitment of highly qualified personnel/expertise to the region

14. What costs are eligible under RTRI?

Eligible costs must be reasonable and necessary for carrying out the project, consistent with the REGI program:

• Capital costs (e.g., machinery, equipment, and infrastructure)
• Material costs
• Labour costs (e.g., salaries, wages, and benefits)
• Consultancy fees (e.g., professional and technical services)
• Advisory expenses (e.g., planning, business information, counselling, coaching, mentoring, workshops, training, networking events, and conferences)
• Market expansion or maintenance costs

Eligible costs may be retroactive up to 12 months before applying, but no earlier than March 21, 2025.

15. How will my project be assessed?

Projects are evaluated based on:

• Alignment with the REGI program
• Alignment with the objectives of the initiative:
  • helping businesses to undertake projects to raise productivity
  • enhance competitiveness and reduce costs, thereby mitigating tariff impacts
• Enabling greater resilience among Canadian businesses through more robust domestic supply chains, enhanced internal trade, market diversification and future-proofing their operations
• Regional economic benefits (e.g., employment, value-added, supply chain impact)
• Ability to demonstrate that the project will assist the client in mitigating any negative impact as a result of the U.S./China tariffs or Canada’s counter-tariffs

Financial Assistance

16. What funding is available under the RTRI?

• Repayable contributions to eligible businesses
• Non-repayable contributions up to $1 million may be made to eligible businesses
• Non-repayable contributions may be made to eligible not-for-profit entities

17. Can all impacted sectors access non-repayable contributions of up to $1 million?

Yes. Eligible SMEs impacted by the tariffs in all sectors may receive non-repayable contributions of up to $1 million if certain parameters are met (refer to question 9).

18. What are the stacking limits for total government funding?

• Commercial projects: Up to 90% of eligible costs (100% for Indigenous clients)
• Non-commercial projects: Up to 100% of eligible costs