CANADA NEWS RELEASE: Government of Canada Announces a New $1 Billion Business Development Bank of Canada Program and $500 Million in Additional Funding for the Regional Tariff Response Initiative, Delivered by the Regional Development Agencies

The government will continue to protect and strengthen the sectors most affected by U.S. tariffs

May 4, 2026 – Ottawa, Ontario

Innovation, Science and Economic Development Canada

The BDC program will provide financing at favourable terms to enable businesses to address immediate pressures. The program will also offer the industry a new tool to transform and adapt to future market conditions. The government expects Canada’s financial institutions to continue to work with the businesses as we lean in collectively to support this sector. This new program aligns with the government’s priority to provide rapid liquidity to viable businesses facing significant economic challenges as a result of U.S. steel, aluminum and copper tariffs.

In addition, the government is providing an additional $500 million through the Regional Tariff Response Initiative (RTRI) to support tariff-impacted businesses in all sectors of our economy. This funding, delivered by Canada’s regional development agencies (RDA), will help ensure that SMEs have access to the financing they need to enable strategic pivots through investments in market diversification and enhanced productivity that strengthen their competitiveness.

The government will also continue to support other critical tariff-impacted industries that are key pillars of Canada’s economy, such as the softwood lumber and forestry sector.

Combined, these measures will further bolster the government’s strong response to these unfair and unjustified tariffs, which to date includes:

• 25% tariffs on a list of U.S. steel product imports worth $12.6 billion and aluminum products worth $3 billion
• a commitment of $5 billion, delivered through the Strategic Response Fund (SRF), with flexible terms to help firms in all sectors, including steel and aluminum, impacted by tariffs to adapt, diversify and grow
• tariff rate quotas (TRQ) to curb foreign steel imports, with TRQs set to 20% of 2024 import levels, with a 50% tariff applied above that threshold, for non–free trade agreement (FTA) countries and TRQs set at 75% of 2024 import levels, with the same over-quota tariff, for FTA partners (excluding the U.S. and Mexico)
• a 25% tariff applied on certain steel and aluminum imports from China as well as on certain non-U.S. steel and aluminum imports that contain steel that is melted and poured in China or aluminum that is smelted and cast in China
• a 25% tariff applied on certain imports of steel-derivative products such as wind towers, prefabricated buildings, fasteners and wires
• a new reskilling package for up to 50,000 workers, more flexibility and extended benefits in the employment insurances, and a new digital jobs and training platform to connect Canadian workers more quickly to careers
• more than $100 million earmarked over two years to provide support to eligible employers in sectors with an active work-sharing agreement and a commitment to supporting training for employees working reduced hours, helping up to 26,000 Canadian workers in various sectors, including steel
• $150 million of the RTRI carved out for steel producers
• enhanced financing tools, including changes to the Large Enterprise Tariff Loan (LETL) and expanded support through the BDC Pivot to Grow Loan and the RDAs
• use of Canadian steel and aluminum prioritized in publicly funded projects through the new Buy Canadian procurement policy that requires all contracts worth over $25 million to prioritize Canadian materials
• collaboration with railway companies to cut freight rates for transporting Canadian steel and lumber interprovincially by 50%

Additional Resources

• • • Prime Minister Carney announces new measures to protect and transform Canada’s steel and lumber industries
    • Prime Minister Carney announces new measures to protect and strengthen Canada’s steel industry
    • Supporting a strong and resilient Canadian steel industry – Strategic Response Fund
    • Government implements new measures to protect Canada’s steel industry

Contacts

Gabrielle Landry
Deputy Director, Media Relations
Office of the Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
gabrielle.landry@ised-isde.gc.ca

Media Relations
Innovation, Science and Economic Development Canada
media@ised-isde.gc.ca

Sofia Ouslis
Deputy Director of Communications|
Office of the Minister of Artificial Intelligence, Digital Innovation and the Federal Economic Development Agency for Southern Ontario
sofia.ouslis@ised-isde.gc.ca

Media Relations
Federal Economic Development Agency for Southern Ontario
media@feddevontario.gc.ca