Canada–U.S. Trade: Understanding the Situation, Adapting and Seizing Opportunities

On August 22, 2026, following the breakdown of trade negotiations between Canada and the United States, the Government of Quebec announced two financing programs for businesses directly or indirectly affected by U.S. tariffs.

• FORCE program
• PAUPME emergency assistance program

On August 25, 2026, the Government of Canada announced a set of new and enhanced measures to support businesses and workers affected by U.S. tariffs. These measures include increased liquidity support for SMEs, assistance with diversification and investment, measures aimed at helping maintain employment, as well as more flexible financing conditions for large businesses.

• Regional Tariff Response Initiative

  Enhancement of $1.5 billion, an increase in the ceiling for non-repayable contributions to $3 million, and new liquidity support of up to $2 million.

• Pivot to Grow Program

  New $500 million liquidity program offered by BDC, providing loans ranging from $250,000 to $5 million.

• The Large Enterprise Tariff Loan

  More flexible financing to cover up to 36 months of liquidity needs, with the maximum loan term extended to 15 years.

• BDC Steel and Aluminium Industries Support Program

  Available to Canadian steel, aluminum and copper companies that export to the United States. The program provides up to $50 million in working capital to support their financing needs.

• EDC Trade Impact Program

  Financing, working capital, guarantee and credit insurance solutions for Canadian companies affected by tariffs and trade uncertainty. An additional $5 billion in capacity has been made available to eligible businesses.

• Local Investment Funds Moratorium

  A financing measure of last resort for viable Canadian businesses, generally those with annual revenues of at least $150 million, facing significant liquidity pressures as a result of tariffs.

• Panorama

  Financing and support enabling Quebec businesses to diversify their sales across Canada and internationally, outside the United States. The program offers a term loan of $250,000 to $1 million, as well as financing solutions for needs exceeding $1 million.

• ALÉGO Program

  Support offered through the network of regional export promotion organizations. A grant covering up to 50% of support costs. The diversification component is aimed in particular at businesses with minimum revenues of $2 million, fewer than 500 employees, and an interest in developing a market outside Quebec other than the United States.

• Commercialization and Export Support Program (PSCE)

  Support for commercialization, sales development, and export projects. Eligible activities, funding amounts, and application periods vary by component.

• Diversification Fund for a Strong Canada

  New $2-billion fund to support affected businesses with shovel-ready projects

• Agri-Marketing Program – Market Diversification

  Support for Canada's agriculture, agri-food, fish, and seafood sectors to develop new markets. An additional $75 million over five years is being allocated.

• ESSOR

  Support for innovation, digital transformation, productivity, and competitiveness projects. Eligibility criteria, forms of assistance, and maximum amounts vary by component.

• Grand V

  Flexible financing and technological support for projects that improve productivity, innovation, and sustainability. The initiative notably offers term loans of a minimum of $250,000, with a capital repayment moratorium of up to 48 months.

• Strategic Response Fund

  Support for major investment projects, generally worth a minimum of $20 million. Particular attention is given to heavily affected sectors, including steel, aluminum, automotive, and forest products.

• Program to Support the Retention of Strategic Businesses and Emergency Assistance (PARESAU)

  Support for strategic businesses facing financial difficulties. Component 1 funds certain studies aimed at developing solutions, while Component 2 offers temporary financial support to help maintain operations.

• DÉPART

  Support for business projects located in eligible RCMs. Assistance can reach up to $125,000 per project, subject to criteria applicable to the business, project, sector, and territory.

• Work-Sharing – Special Tariff-Related Measures

  Employment Insurance benefits that allow eligible businesses to temporarily reduce their employees’ working hours in order to avoid layoffs.

• Worker Retention Grant for Work-Sharing Employers

  Support for employers with an active Work-Sharing agreement. It helps bring employees’ earnings closer to their regular wages for the duration of the agreement.

• Workforce Retention and Transition Program

  A new program designed to help employers retain and train their employees. Detailed program terms will be announced at a later date.

• Customized Training for Market Diversification

  Reimbursement of a portion of training costs so that workers can acquire the skills needed to develop new markets.

• Tariff relief for Canadian importers importing goods from the U.S.

  Allows businesses, in certain exceptional circumstances, to apply for relief from or a refund of Canadian counter-tariffs. Each application is assessed on a case-by-case basis.

• Duty Deferral Program

  Allows certain goods to be imported without paying duties immediately when the goods will subsequently be exported.

• Duty Drawback Program

  Allows businesses to claim a refund of certain duties paid on goods that are subsequently exported.

• Customs Bonded Warehouses Program

  Allows businesses to defer the payment of duties and taxes until the goods enter the Canadian market.

• Remissions on certain steel and aluminum products

  Provides temporary relief from Canadian duties on certain eligible steel and aluminum products imported from the United States, including certain inputs used in the automotive, aerospace, manufacturing and agricultural sectors.

Forestry Sector

• BDC Forestry Support Program

  Financing of up to $25 million for forest product manufacturers and $10 million for certain service businesses in the sector.

• FORET

  Financing of up to $5 million for softwood lumber sawmill investments aimed at diversification, productivity, and resilience. Maximum term of five years.

• Federal Support for Forestry Sector Businesses and Workers

  Brings together federal measures for liquidity, transformation, diversification, and support for workers in the forestry sector.

Agriculture and Agri-Food

• Support Measures for Industries Affected by Trade Disruptions

  Presents cash flow, risk management, and market development programs available to agricultural and agri-food businesses, including AgriStability, AgriInvest, the Advance Payments Program, and Farm Credit Canada financing solutions.