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Gov & Employment Canada Aug 25, 2026

Canada boosts Regional Tariff Response by $1.5B; SME cap rises to $3M

Canada boosts Regional Tariff Response by $1.5B; SME cap rises to $3M

In its August 25, 2026 $7.5-billion tariff-support package, the federal government added $1.5 billion to the Regional Tariff Response Initiative delivered by Canada's seven Regional Development Agencies, effective September 2026. The per-business funding cap rises from $1 million to $3 million, with new liquidity support of up to $2 million for tariff-affected SMEs.

Why this matters for founders

Founders in tariff-exposed sectors should contact their regional development agency (e.g., FedDev Ontario, PacifiCan, or ACOA) from September 2026 to apply for up to $3M in support or $2M in liquidity to manage cash flow and adapt supply chains.

Source: Department of Finance Canada

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