August 26, 2026

By Electro Federation Canada

Recent developments have provided a glimmer of hope that Canada and the United States may be moving closer to a trade agreement.

EFC has met with government ministries and continues to keep the Government of Canada informed about the potential impacts on Canada’s electrical industry. EFC wants to ensure that members remain fully aware of the supports currently available. The Government of Canada, together with the Business Development Bank of Canada (BDC) and Export Development Canada (EDC), offers several programs to help affected companies maintain operations, manage cash flow, improve productivity and diversify into new markets.

Below is an overview of the principal supports that may be relevant to EFC members.

Federal Tariff Supports: What EFC Members Should Know

Canadian businesses continue to face higher costs, supply-chain disruption and market uncertainty resulting from tariffs and shifting trade policies. These pressures are particularly relevant to the electrical and automation industry, where products and components are frequently move through integrated North American supply chains. In addition, our industry has a high reliance on imports and exports.

The Government of Canada, together with the Business Development Bank of Canada and Export Development Canada, has introduced several programs to help affected companies maintain operations, manage cash flow, improve productivity and diversify into new markets.

Below is an overview of the principal supports that may be relevant to EFC members.

BDC Pivot to Grow Loan

BDC’s Pivot to Grow Loan provides flexible financing to help Canadian businesses respond to the direct or indirect effects of U.S. tariffs, trade uncertainty and the related economic downturn.

Businesses must generally:

Be headquartered in Canada;
Generate annual sales of at least $2 million;
Demonstrate positive cash flow and profitability;
Generate at least 15% of their sales from exports to the United States or demonstrate a significant likelihood of being adversely affected by current trade conditions; and
Show that they were viable before the current trade disruption and have the capacity to implement a credible adaptation plan.

Eligible businesses may access up to $5 million in financing, subject to a minimum total loan commitment of more than $350,000. Funds may be used to cover operational expenses, purchase equipment, offset additional tariff-related costs, modify supply chains and implement business resiliency plans.

The financing is repayable and offered at preferred interest rates. BDC may allow interest-only payments for up to the first 24 months, with repayment terms of up to 84 months, including any initial principal-postponement period. Businesses may also repay the loan early without penalty.

Review BDC’s Pivot to Grow Loan.

New BDC Support for Steel, Aluminum and Copper-Related Businesses

In May 2026, the federal government announced a new $1-billion BDC financing program for Canadian businesses that manufacture or export products containing steel, aluminum or copper. The government also committed an additional $500 million to the Regional Tariff Response Initiative (RTRI), delivered through Canada’s regional development agencies.

The BDC program may be particularly relevant to electrical manufacturers and suppliers that rely significantly on steel, aluminum or copper and have been materially affected by U.S. tariffs.

Canadian-based businesses with material exposure to these tariffs and annual revenue of at least $5 million may be eligible for loans ranging from $2 million to $50 million, based on their financing needs. Working-capital financing is offered at preferential rates for terms of up to 36 months.

The financing is intended to provide viable businesses with near-term financial flexibility to manage cash flow, absorb increased costs, maintain operations, fulfil existing contracts and pursue new markets.

Read the federal program backgrounder.

Regional Tariff Response Initiative

The Regional Tariff Response Initiative, or RTRI, supports tariff-affected businesses through Canada’s regional development agencies.

Businesses can request a minimum of $125,000 up to a maximum of $10 million for repayable or $1 million

for non-repayable funding. To be eligible for non-repayable contributions, the applicant must generate economic benefits for the local economy or given region, including:

Improve productivity and reduce costs;
Adopt automation, digital tools and innovative technologies;
Strengthen and diversify supply chains;
Develop new Canadian and international markets;
Create new export revenue;
Reshore or expand domestic production; and
Improve long-term competitiveness and resilience.

Support is primarily directed toward small and medium-sized businesses affected by trade disruption. Funding availability, contribution amounts and application requirements vary by region. Members should contact the regional development agency serving the location where their project will be undertaken. Learn more about the national RTRI expansion.

Strategic Response Fund

The $5-billion Strategic Response Fund supports larger investments intended to help Canadian firms affected by tariffs adapt, diversify and grow.

The fund can assist companies with retooling, maintaining industrial capacity, overcoming new market-access costs, commercializing technologies, improving facilities and expanding into new markets. It is designed primarily for significant projects that can demonstrate economic, innovation and public benefits for Canada.

Funding is generally provided as a repayable contribution. Non-repayable assistance may be considered in limited circumstances where a project is expected to generate substantial benefits for Canadians. Explore the Strategic Response Fund.

EDC Trade Impact Program

Export Development Canada has allocated an additional $5 billion over two years through its Trade Impact Program to support Canadian exporters facing trade and market uncertainty.

EDC’s available solutions include:

Loans and working-capital support;
Guarantees that can help companies obtain additional financing from their financial institutions;
Credit insurance protecting against non-payment by foreign customers;
Support for managing foreign-exchange risk; and
Financing and market intelligence to help businesses expand beyond the United States.

This program may be helpful to EFC members experiencing reduced U.S. sales, delayed payments, currency volatility or increased working-capital requirements. Review EDC’s Trade Impact Program.

Tariff Remission and Duty Relief

Businesses importing goods subject to Canadian surtaxes should also determine whether their products qualify for tariff remission, duty relief or a drawback.

Existing remission applies to certain products and manufacturing inputs. Where general relief is unavailable, Canadian companies may be able to request exceptional remission, particularly when required goods cannot be sourced domestically or when tariffs would create severe economic harm.

Businesses should confirm the applicable HS classification and retain documentation showing tariff payments, sourcing efforts, production costs and operational impacts. Review Canada’s tariff-relief information.

Preparing to Apply

EFC members considering an application should begin by documenting:

The HS codes and products affected;
The company’s direct and indirect tariff exposure;
Impacts on costs, cash flow, employment, customers and production;
Attempts to secure alternative suppliers or markets;
The proposed response, including costs, timing and expected outcomes; and
How the project will support Canadian jobs, productivity, innovation or supply-chain resilience.

Companies are encouraged to contact BDC, EDC or their regional development agency early. Program funding is limited, and several programs accept applications only until their funding envelopes have been allocated.

Next Steps

EFC will continue to monitor Canada–U.S. trade developments and available government supports. Members are encouraged to share tariff impacts and gaps in existing programs with EFC to help inform our ongoing government relations and advocacy efforts.

* Program requirements and availability may change. Members should confirm current eligibility and terms directly with the responsible government agency.

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