Regional Tariff Response Initiative (RTRI): Funding for Quebec Businesses Affected by Tariffs

Tariffs imposed by the United States and China, along with Canadian countermeasures and countervailing duties, have created challenges for many Quebec businesses. Higher costs, supply chain disruptions and lost customers can put pressure on both operations and cash flow.

The Government of Canada’s Regional Tariff Response Initiative (RTRI), delivered in Quebec by Canada Economic Development for Quebec Regions (CED), offers support to eligible businesses affected by these trade disruptions. The initiative is part of the Regional Economic Growth through Innovation (REGI) program.

As of September 2026, the RTRI offers two types of support: short-term liquidity assistance and funding for projects that help businesses improve productivity, diversify markets and build long-term resilience.

What funding is available under the RTRI?

Liquidity assistance

Businesses facing tariff-related financial pressures may be eligible for non-repayable funding of up to $2 million, covering up to 50% of eligible costs.

This assistance is intended to help businesses maintain their Canadian operations and retain employees. Eligible costs may include wages and certain essential recurring operating expenses, such as commercial rent, utilities, business insurance and property taxes.

The amount awarded depends on the business’s demonstrated cash flow needs and is based mainly on payroll costs. Assistance may cover a period of up to 12 months, ending no later than March 31, 2028.

Funding for pivot projects

Businesses investing in a response to trade disruptions may be eligible for:

• Non-repayable funding of up to $1 million, covering up to 50% of eligible costs, for projects with local or regional economic benefits;

• Repayable funding of more than $1 million, covering up to 75% of eligible costs, for larger-scale transformative projects.

Repayable contributions are interest-free. Pivot projects must be completed no later than March 31, 2029.

An eligible business may apply for liquidity assistance, pivot project funding or both. The combined non-repayable contribution can reach $3 million. When repayable assistance is included, total RTRI funding can reach $20 million, subject to the assessment of the application.

Who is eligible in Quebec?

To qualify, a business must generally:

• be an incorporated, for-profit business located and operating in Quebec;

• have generated at least $1 million in annual revenue in one or both of its last two fiscal years;

• have been viable before March 21, 2025;

• demonstrate direct or indirect exposure to tariff-related trade disruptions.

A business may demonstrate that exposure through its sector, its role in an affected exporter’s supply chain, the share of its revenue tied to goods ultimately exported to the United States or China, significant increases in input costs, supply chain disruptions, or lost revenue or customers.

The initiative is open to businesses in all tariff-impacted sectors; it is not limited to manufacturing. Quebec not-for-profit organizations whose primary purpose is to support businesses may also qualify for project funding, but not for liquidity assistance for their own operating expenses.

What kinds of projects can receive funding?

Pivot projects should produce measurable results and help a business adapt to trade pressures. Eligible activities may include:

• improving productivity and modernizing processes;

• purchasing equipment or adopting technology, including automation and digitization;

• developing exports and diversifying markets;

• making supply chains more resilient;

• reducing trade-related risks and strengthening competitiveness.

For pivot projects, eligible expenses must be new, additional and directly related to the proposed activities. Costs such as refinancing existing debt or purchasing land and buildings are generally ineligible.

How are applications assessed?

CED reviews each application against program criteria, the demonstrated impact of tariffs, the business’s needs and the proposed response. A strong application should explain how trade disruptions have affected the business and show how the requested support will help maintain operations or produce measurable improvements.

For liquidity assistance, the business must demonstrate a quantified cash flow need, generally through forecasts, and commit to maintaining operations and employment in Canada. Applicants should also be prepared to provide financial statements, evidence of tariff impacts and information about other government assistance received or requested.

Get support with your funding application

Is your business facing higher costs, lost sales or cash flow pressures because of tariffs? Mallette’s government funding advisors can help you assess your eligibility, document the impact on your business and prepare your application. Contact our team to discuss your project.