Regional Tariff Response Initiative

Part of REGI

• The Regional Tariff Response Initiative (RTRI) is a temporary measure. It targets manufacturing SMEs manufacturing SMEs adversely impacted by the economic context caused by tariffs, and complements other federal, provincial, and territorial tariff support programs.
• The RTRI was recently extended to continue to help manufacturing SMEs adapt to a changing economic environment through investments that promote market diversification and improved productivity.

To be eligible, a business must:

• Be a manufacturing SME with fewer than 500 employees.
• Be located and operate in Quebec.
• Be adversely impacted by the economic context (loss of revenue, rising costs, reduced profitability) and be able to demonstrate this in concrete terms.
• Have a structuring project aimed at improving the company’s competitiveness and diversifying its markets. A structuring project is defined as an investment that results in a significant, lasting and measurable change in the company’s operations, beyond a one-time or incremental improvement. The project must enable the company to strengthen its ability to cope the impacts of tariff measures, reduce its vulnerability to certain markets or inputs, and improve its competitive position. For example:
  • adapting or reconfiguring a production line to serve new markets, new customers or new value chains;
  • developing new production, processing or finishing capacity that enables the company to better meet the requirements of markets outside the United States;
  • significantly increasing productivity, including through automation, the modernization of critical equipment or the integration of digital technologies;
  • achieving lasting reductions in production costs, losses, lead times or dependence on inputs that are more vulnerable to trade disruptions;
  • strengthening the company’s integration into Canadian or international value chains, including by adding a strategic capability that is currently absent or limited;
  • supporting market diversification through investments directly related to adapting products, processes, certifications or production capabilities required to access those markets.

  Conversely, projects that are limited primarily to the replacement of similar equipment, performing routine facility maintenance, making marginal capacity increases or implementing standard improvements without a significant impact on the company’s competitiveness, resilience or diversification would generally be considered less structuring.

• 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, that is before March 21, 2025. This must be demonstrated by the SME's financial statements.

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

The RTRI supports manufacturing SMEs adversely impacted by the economic context caused by tariffs by enabling the completion of structuring projects 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.
• Costs may be eligible retroactively for up to 12 months prior to receipt of the signed application, which must be submitted no earlier than 21 March 2025. The need for financial assistance must be justified for these costs.

Financial assistance

• For structuring investment projects aimed at boosting productivity and diversifying markets: non-repayable contribution of up to $1 million.
• For projects aimed solely at market diversification: non-repayable contribution of up to $300,000.
• For major structuring investment projects: repayable contribution of over $1 million.

Assistance rate

• The maximum assistance rate is 50% for projects receiving a non-repayable contribution..
• The maximum assistance rate is 75% for projects receiving a repayable contribution.
• The minimum amount of assistance is $100,000.

Submitting a funding application

• CED accepts funding applications under RTRI.
• Submit a financial assistance application
• Questions? Contact us