Government of Canada announces a new $1 billion Business Development Bank of Canada program and $500 million in additional funding for the Regional Tariff Response Initiative, delivered by the regional development agencies

The government will continue to protect and strengthen the sectors most affected by U.S. tariffs

OTTAWA, ON, May 4, 2026 /CNW/ - Today, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, and the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario, announced $1.5 billion to support several of Canada's tariffed industries. This includes the creation of a new $1 billion Business Development Bank of Canada (BDC) program that will strengthen Canada's economic resilience. The program will be available to industries that manufacture and export products containing steel, aluminum or copper. It will support firms that use these metals in a significant way in their production and that have been impacted by the tariffs. As a result of the United States' April 6, 2026, adjustment to its tariffs on products containing steel, aluminum and copper, the Government of Canada is working with urgency to transform our strategic industries so they can adapt, compete, and win in this new global environment.

The BDC program will provide financing at favourable terms to enable businesses to address immediate pressures. The program will also offer the industry a new tool to transform and adapt to future market conditions. The government expects Canada's financial institutions to continue to work with the businesses as we lean in collectively to support this sector. This new program aligns with the government's priority to provide rapid liquidity to viable businesses facing significant economic challenges as a result of U.S. steel, aluminum and copper tariffs.

In addition, the government is providing an additional $500 million through the Regional Tariff Response Initiative (RTRI) to support tariff-impacted businesses in all sectors of our economy. This funding, delivered by Canada's regional development agencies (RDA), will help ensure that SMEs have access to the financing they need to enable strategic pivots through investments in market diversification and enhanced productivity that strengthen their competitiveness.

The government will also continue to support other critical tariff-impacted industries that are key pillars of Canada's economy, such as the softwood lumber and forestry sector.

Combined, these measures will further bolster the government's strong response to these unfair and unjustified tariffs, which to date includes:

• 25% tariffs on a list of U.S. steel product imports worth $12.6 billion and aluminum products worth $3 billion
• a commitment of $5 billion, delivered through the Strategic Response Fund (SRF), with flexible terms to help firms in all sectors, including steel and aluminum, impacted by tariffs to adapt, diversify and grow
• tariff rate quotas (TRQ) to curb foreign steel imports, with TRQs set to 20% of 2024 import levels, with a 50% tariff applied above that threshold, for non–free trade agreement (FTA) countries and TRQs set at 75% of 2024 import levels, with the same over-quota tariff, for FTA partners (excluding the U.S. and Mexico)
• a 25% tariff applied on certain steel and aluminum imports from China as well as on certain non-U.S. steel and aluminum imports that contain steel that is melted and poured in China or aluminum that is smelted and cast in China
• a 25% tariff applied on certain imports of steel-derivative products such as wind towers, prefabricated buildings, fasteners and wires
• a new reskilling package for up to 50,000 workers, more flexibility and extended benefits in the employment insurances, and a new digital jobs and training platform to connect Canadian workers more quickly to careers
• more than $100 million earmarked over two years to provide support to eligible employers in sectors with an active work-sharing agreement and a commitment to supporting training for employees working reduced hours, helping up to 26,000 Canadian workers in various sectors, including steel
• $150 million of the RTRI carved out for steel producers
• enhanced financing tools, including changes to the Large Enterprise Tariff Loan (LETL) and expanded support through the BDC Pivot to Grow Loan and the RDAs
• use of Canadian steel and aluminum prioritized in publicly funded projects through the new Buy Canadian procurement policy that requires all contracts worth over $25 million to prioritize Canadian materials
• collaboration with railway companies to cut freight rates for transporting Canadian steel and lumber interprovincially by 50%

Quotes

"We are taking concrete action to strengthen Canada's economy by standing behind our steel, aluminum and copper industries. The new measures announced today will protect workers and ensure companies have the tools and financing they need to keep operating, growing, and building Canada's strength at home."
– The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

"Canada's steel, aluminum and copper industries are facing real pressure, and our government is moving quickly to help them adapt, modernize and compete. Today's investment will give businesses the financing they need to strengthen their operations, protect good Canadian jobs and build a more resilient industrial economy here at home."
– The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario

"Our economy is driven by Canadian businesses and the workers who power our steel, aluminum and copper industries. These initiatives will ensure homegrown businesses in Northern Ontario and across the country have access to the resources they need to adapt, endure and succeed. When we invest in Northern Ontario, we invest in Canada's future and strengthen a national economy that serves Canadians everywhere--one resilient business, one good job and one thriving community at a time."
– The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario

"When we invest in Atlantic Canadian businesses, we are sharpening Canada's competitive edge. This initiative gives small and medium-sized businesses practical support to adjust, stay competitive and keep building strong local economies. Today's investment will help companies invest in their operations, reach new markets and create the conditions for growth across the region."
– The Honourable Sean Fraser, Minister of Justice and Attorney General of Canada and Minister responsible for the Atlantic Canada Opportunities Agency

"Canada's steel, aluminum and copper industries are critical to building the homes, infrastructure and clean economy Canadians rely on. Our government is acting decisively to support the industries that underpin our economy. This new $1 billion program will give manufacturers and exporters the tools they need to adapt, stay competitive and grow--strengthening Canada's economic resilience and ensuring our strategic industries are positioned to succeed in a changing global market."
– The Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada

"Western Canadians know what it means to persevere in tough conditions. That is true today, as tariff-impacted businesses across our region adapt to meet that challenge head on. Our government is continuing to support that work through a $500 million top-up to the Regional Tariff Response Initiative. This additional funding will help more businesses adjust to shifting markets and supply chains, diversify, build resilience, stay competitive and keep creating good jobs in communities across the Prairie provinces."
– The Honorable Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada

"Northern businesses in copper, steel and aluminum are feeling the pressures from an unfair market landscape. Today's announcement sends a clear message to northern businesses and the workers who depend on them: We have your back. This investment will give our companies the financing and tools they need to keep going through this disruption, protect well-paying jobs, and keep northern industry and supply chains strong for years to come."
– The Honourable Rebecca Chartrand, Minister of Northern and Arctic Affairs and Minister responsible for the Canadian Northern Economic Development Agency

"When markets turn unfair, Canada needs institutions that can step up and deliver fast. BDC is ready to get this money into the operations of steel and aluminum companies quickly, keeping their doors open and them producing. Canada is standing shoulder to shoulder with our steel and aluminium businesses, giving them the tools they need to cut through this tariff disruption."
– Isabelle Hudon, President and Chief Executive Officer, BDC

Associated links

• Prime Minister Carney announces new measures to protect and transform Canada's steel and lumber industries
• Prime Minister Carney announces new measures to protect and strengthen Canada's steel industry
• Supporting a strong and resilient Canadian steel industry – Strategic Response Fund
• Government implements new measures to protect Canada's steel industry

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Contacts: Gabrielle Landry, Deputy Director, Media Relations, Office of the Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, [email protected]; Media Relations, Innovation, Science and Economic Development Canada, [email protected]; Sofia Ouslis, Deputy Director of Communications, Office of the Minister of Artificial Intelligence, Digital Innovation and the Federal Economic Development Agency for Southern Ontario, [email protected]; Media Relations, Federal Economic Development Agency for Southern Ontario, [email protected]