Federal government announces $1.5B tariff relief after U.S. expands trade measures

The federal government says it will roll out $1.5 billion in tariff relief following recent changes by the United States that broadened the scope of its tariff measures last month.

According to a federal announcement, the package includes a new $1 billion program through the Business Development Bank of Canada aimed at supporting the manufacturing sector. The government says the program is intended to help businesses manage cost pressures and maintain operations amid shifting trade conditions.

The plan also includes a $500 million top-up to the regional tariff response fund, which provides targeted support to industries and regions most affected by tariffs. Officials have not yet released detailed eligibility criteria or timelines for applications.

The tariff changes by the United States have raised concerns among Canadian manufacturers, including those in Western Canada, where export-driven industries rely on cross-border trade. It remains unclear which sectors will be prioritized under the new funding measures.