Canada is launching a $730 million program for industry in response to U.S. tariffs

The Canadian government has announced the launch of a C$1 billion ($734.6 million) loan program to support industries negatively impacted by U.S. tariffs. The initiative is primarily aimed at companies that manufacture and export steel, aluminum, and copper products, according to Reuters.

According to Industry Minister Melanie Joly, the program is part of a broader strategy to support key economic sectors following the U.S. imposition of tariffs on imports of metal products, automobiles, lumber, and other goods.

Funding will be provided through the Business Development Bank of Canada in the form of loans ranging from 2 million to 5 million Canadian dollars with terms of up to three years on favorable terms. This is expected to allow companies to adapt to new trade conditions and remain competitive in foreign markets.

“The steel, aluminum ‌and ⁠copper sectors are key. They are key, obviously, to our economy, key to our manufacturing sector, but also key to ​our sovereignty,” Joly stated during a press conference in Ottawa.

The launch of the new program complements existing support measures. Previously, the Canadian government announced a C$5 billion tariff response fund and initiated programs to retrain workers, promote the use of domestic metal products, and reduce transportation costs for steel and wood producers.

In addition, the government is allocating another 500 million Canadian dollars to regional development agencies, which will support all sectors affected by the tariffs. This funding is being implemented as part of the Regional Tariff Response Initiative.

The Canadian government emphasizes that supporting industry is critical to maintaining the country’s economic resilience amid escalating trade tensions with the United States.

As a reminder, in late 2025, Canada announced new measures to support steel producers amid trade tensions and U.S. tariffs. The plan called for limiting steel imports from countries with which Canada does not have a free trade agreement (FTA) from 50% to 20% of 2024 levels. At the same time, volumes exceeding the quota will continue to be subject to a 50% additional tariff.