Regional Tariff Response Initiative

• Non-repayable financial assistance of up to $1 million per project, with a maximum assistance rate of 50% for eligible activities.
• Non-repayable funding up to $300,000 for projects solely focused on market diversification.
• The minimum amount of financial assistance per project is $100,000.
• For projects requesting more than $1 million, repayable funding may be considered, with a maximum assistance rate of 75%.
• The actual amount awarded is subject to assessment of the application and availability of funds; it may differ from the amount requested.

• The applicant must be a manufacturing SME with fewer than 500 employees.
• The company must be located and operate in Quebec.
• The business must have been in operation for at least three years.
• The company must have generated revenues of $2 million or more during the last completed fiscal year.
• The applicant must demonstrate it has been negatively impacted by tariffs imposed by the United States, China, or related Canadian countermeasures, with tangible evidence of such impacts.

Who is eligible?

• Manufacturing SMEs (Small and Medium-sized Enterprises) operating in Quebec
• Manufacturing companies in sectors significantly impacted by tariffs, such as steel, automotive, copper, and aluminum

Who is not eligible

• Companies that are not manufacturing SMEs.
• Businesses with 500 or more employees.
• Companies not located and operating in Quebec.
• SMEs that have been in operation for less than three years.
• Companies that have not been negatively impacted by tariffs from the United States, China, or Canadian countermeasures.

Eligible expenses

• Acquisition of equipment essential to the project.
• Costs related to digitization and automation directly linked to productivity improvements.
• Acquisition or adaptation of technologies to enhance productivity and competitiveness.
• Expenses for technology showcases and demonstrations integral to the project.
• Expenses necessary to implement market diversification strategies, such as participation in trade missions and prospecting visits.
• Costs essential to establishing strategic partnerships, optimizing supply chains, or complying with standards to access new markets or increase sales, provided these are directly related to the project.

Eligible geographic areas

• Quebec

• Extent and quantification of the impact of tariffs and duties on the applicant SME (e.g., loss of revenue, increased costs, loss of profitability, or share of impacted activities).
• Relevance of the company's sector, with prioritization of sectors significantly impacted by targeted tariffs (such as steel, automotive, copper, and aluminum).
• Company’s key role in the regional or sectoral economy (e.g., number of jobs, revenue, status as a strategic supplier, or major employer).
• Structural nature of the project to enhance competitiveness or diversify markets (with prioritization for commercialization projects targeting markets other than the U.S.).
• Commitment to integrate or consider Canadian technologies and products in the investment project and production inputs.

• Applications must be submitted through the CED Client Space by an authorized person who can legally bind the company.
• Financial statements included in the application should be audited or reviewed and externally prepared; only the most recent year may be internally prepared on a provisional basis.
• Projects must begin before March 31, 2026, and be completed by March 31, 2028.
• CED may adjust program implementation and prioritization based on evolving tariff situations in the future.