Canadian and Design Construction writer
The federal government says it will provide $1.5 billion in tariff relief after the United States broadened and intensified duties on metal products, a move Canada warns is placing growing strain on the manufacturing sector.
The package includes a new $1 billion program through the Business Development Bank of Canada aimed at supporting manufacturers, along with a $500 million top-up to the regional tariff response fund.
The BDC initiative will offer three-year, low-interest loans of up to $50 million to companies in the steel, aluminum and copper sectors affected by U.S. tariffs. Repayment will be deferred for the first three years, with the goal of helping firms maintain operations and adapt to shifting trade conditions.
Industry Minister Mélanie Joly and Digital Innovation Minister Evan Solomon announced the measures Monday, saying businesses require immediate liquidity and longer-term support to diversify export markets.
“We’re in a trade war. We are on the front lines and the goal is to protect workers and actually keep companies afloat,” Joly said at a news conference in Ottawa.
The announcement follows an April 2 proclamation by U.S. President Donald Trump expanding tariffs on steel and aluminum and extending them to certain copper derivatives. The changes have raised costs for Canadian exporters and added complexity to tariff classifications, creating challenges for manufacturers and customs brokers.
Industry groups say the federal response is a step forward but may not be sufficient. Nicole Vlanich of the Canadian Association of Moldmakers said many firms are already under financial strain and warned that additional loans could deepen long-term pressures.
“These tariffs are putting them in the red,” she said, pointing to cases where single shipments have incurred tariff costs reaching hundreds of thousands of dollars.
Catherine Cobden, president and CEO of the Canadian Steel Producers Association, welcomed the financial support but urged Ottawa to strengthen trade protections against imported steel derivatives that compete with domestic production.
Conservative industry critic Raquel Dancho described the measures as a temporary solution and said they signal a lack of progress toward resolving the dispute with the United States.
The announcement was made at a dump truck manufacturing facility in the Ottawa area, where Liberal MPs from tariff-affected regions joined the ministers. Dominique O’Rourke said uncertainty remains the biggest challenge for manufacturers, particularly as tariff rules continue to evolve.
She said impacts are being felt across the supply chain, with production slowdowns at larger firms and reduced activity and job losses among smaller fabricators and assemblers.
Joly added the federal government is also in discussions with forestry and softwood lumber companies about potential additional supports.
