Federal government rolling out $1.5 billion in tariff relief

The federal government is announcing $1.5 billion in tariff relief in response to the United States widening its tariff criteria last month.

The announcement includes the creation of a new $1 billion program under the Business Development Bank of Canada to bolster the manufacturing sector, and a $500 million top-up to the regional tariff response fund.

The new development bank programming is meant to shore up factories hit by U.S. tariffs affecting exports of products containing steel, aluminum and cooper.

It will make available three-year, low-interest loans of up to $50 million to tariff-hit businesses.

Industry Minister Mélanie Joly announced the federal funding today at a manufacturing facility southeast of Ottawa.

Joly says while the government must act to provide businesses with liquidity in the short term, it’s also pursuing a broader medium-term strategy to help exporters adapt and move into new markets.