Regional Tariff Response Initiative

Part of REGI

• The Regional Tariff Response Initiative (RTRI) is a temporary measure designed to help manufacturing SMEs negatively impacted by tariffs invest in order to remain competitive in the long run.
• This support targets projects that boost productivity to reduce costs, strengthen supply chains, or contribute to market diversification.
• The RTRI complements other federal, provincial, and territorial tariff support programs.

To be eligible, a company must:

• Be a manufacturing SME with fewer than 500 employees.
• Be located and operate in Quebec.
• Have been in business for at least three years.
• Have generated revenues of $2 million or more during the last completed fiscal year.
• Have been viable before the imposition of tariffs by the United States or China, and before March 21, 2025. This must be demonstrated by the SME's financial statements.
• In addition, to be eligible, the company must:
  • Be negatively impacted by the tariff environment and duties imposed by the United States, China, or Canadian countermeasures.
  • Provide tangible evidence of these impacts, such as a decrease in revenue, an increase in costs, a loss of profitability, or any other relevant information demonstrating the negative effects suffered.

Any application that does not meet the above eligibility criteria will be automatically rejected.

The RTRI supports manufacturing SMEs negatively impacted by tariffs by enabling the completion of structuring projects within the timeframe set for this initiative (March 2025 to March 2028) in the following ways:

• By helping companies undertake projects aimed at boosting productivity, improving competitiveness, and reducing costs to mitigate the effects of tariffs.
• By enabling greater business resilience through market diversification.

Eligible activities include, but are not limited to:

• The acquisition of equipment, digitization, automation, and the acquisition or adaptation of technologies to improve productivity and competitiveness.
• Implementing market diversification strategies, including market diagnosis, development and expansion activities (such as participation in trade missions and prospecting visits), to find new customers and reduce vulnerability to tariffs.
• Establishing strategic partnerships, optimizing supply chains, and complying with standards to access markets or increase sales.
• A technology showcase and demonstration.

Eligible costs:

Costs that are essential to the project and directly related to the activities listed above.

Financial assistance:

• Eligible SMEs could receive non-repayable financial assistance of up to $1 million for two types of projects:
  • Up to $1 million for structural investments in productivity or for hydrid projects aimed at productivity and market diversification.
  • Up to $300,000 for a project focused solely on market diversification.
• The minimum amount of assistance is $100,000.
• The amount of the contribution is conditional on the analysis of the application and the availability of funds. CED may offer an amount of assistance that differs from the amount requested.
• The maximum assistance rate is 50%.

Submitting a funding application:

Please note that the RTRI application must be distinct and separate from any active project with CED.

Required documentation:

The application form and required documents must be submitted no later than October 31, 2025, at 12:00 p.m. EST via the CED Client Space. Only the authorized person may complete and submit the application for assistance.

A complete application must include:

1. The application form, duly completed and submitted by an authorized person. This includes questions concerning the company's eligibility and prioritization criteria.
2. Financial statements
   The company's financial statements for the last two fiscal years and the most recent interim financial statements. Financial statements that have been audited or reviewed are preferred. Financial statements must be prepared externally and include at least a balance sheet, income statement, cash flow statement, and explanatory notes. Internally prepared financial statements may be provided on a provisional basis for the most recent fiscal year only.
3. Work plan or project schedule
   A work plan or project schedule describing the main activities, milestones, and detailed budget for the project.
4. Documents providing tangible evidence of the impacts of the tariffs, such as a decrease in revenue, an increase in costs, a loss of profitability, or any other relevant information demonstrating the negative effects suffered.

Applications must be received by CED no later than October 31, 2025, at 12:00 p.m. EST.

Depending on budget availability, other project submission dates may be announced.

All applications will be reviewed after the deadline. The application must include all the required information indicated in this guide to be considered. Applications received after the deadline will not be considered.

Financial assistance:

Repayable financial assistance of more than $1 million may be considered for investment projects in productivity and market diversification.

• For repayable contributions, the maximum assistance rate is 75%.
• The amount of the contribution is conditional on the analysis of the application and the availability of funds. CED may offer an amount of assistance that differs from the amount requested.

Submitting an application:

• Applications for repayable contributions will be considered on an ongoing basis.
• For these projects, applications will be assessed on a case-by-case basis, in accordance with the Initiative's criteria.
• Please contact us now for more information.