Canada Unveils $1B BDC Program, $500M Tariff Aid Boost

Tariff-related pressures continue to evolve and have tangible impacts across supply chains. This includes the United States' April 6, 2026, changes to the Section 232 tariffs on steel, aluminum and copper and derivative products. These changes have impacted companies from a variety of sectors, including steel fabrication, electrical grid infrastructure, mould making, and metalworking equipment and machinery. Many of these companies and their supply chains develop products and materials that are the foundation of most manufacturing processes and are therefore essential to our industrial sovereignty.

On May 4, 2026, the government 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 available to industries that manufacture and export products containing steel, aluminum or copper. In addition, the government is providing an additional $500 million through the Regional Tariff Response Initiative (RTRI), delivered by Canada's regional development agencies (RDA), to support tariff-impacted businesses in all sectors of our economy.

Together, these measures will help Canada's strategic industries directly impacted by unfair tariffs adapt, compete and win in this new global environment.

BDC tariff support for steel, aluminum and copper companies

In response to rising tariffs, BDC has been actively supporting viable Canadian businesses with working capital to offset higher costs and to protect jobs and productive capacity, while creating the flexibility to adapt and strengthen operations amid ongoing trade challenges.

BDC will provide up to $1 billion in loans to help Canadian steel-, aluminum- and copper-producing companies directly impacted by U.S. tariffs manage near-term liquidity pressures, maintain operations and adapt in a unique trade environment. The financing is intended to give viable firms financial breathing room as they work to stabilize cash flow, continue shipping under existing contracts and pursue new markets.

Canadian-based businesses with material exposure to steel, aluminum or copper tariffs and with a minimum revenue of $5 million are eligible for loans ranging from $2 million to $50 million, scaled to business needs. The repayment of the working capital is provided at preferential rates over a term of up to 36 months to reduce near-term cash pressure.

Additional funding for the RTRI

Canada's RDAs have been delivering the $1 billion national RTRI since September 2025 to support Canadian businesses affected by trade disruptions by helping them improve productivity, expand and diversify markets, and strengthen supply chain resiliency. As part of the $1 billion, $150 million was carved out for steel producers, as well as $100 million for automotive and $150 million for food security.

As of April 2026, over 95% of the $1 billion has been committed or is in approvals. This includes investments to help small and medium-sized enterprises (SME) diversify their markets, create new export revenue sources, adopt innovative technologies to boost productivity and competitiveness, and build more resilient supply chains.

On May 4, the Government of Canada announced an additional $500 million through the RTRI to support tariff-impacted businesses in all sectors of our economy. This includes $200 million carved out for SMEs that have been affected by steel, aluminum and copper tariffs. This funding will help ensure that more SMEs across the country have access to the financing they need to pivot, adopt new technologies, expand into new markets and enhance their overall competitiveness and resilience. This brings the amount to be invested through the RTRI to $1.5 billion nationally.

The additional funding for the RTRI will be allocated across the RDAs, taking into account tariff-affected industries located in their regions: