Government support and relief measures for businesses facing tariff challenges

Canadian businesses are experiencing financial pressures as the tariff landscape continues to evolve. In response, the Canadian government has rolled out several support measures designed to assist businesses and key industries in navigating these challenges.

KPMG teams are helping businesses leverage these new opportunities, as well as existing programs, to manage tariff impacts while fostering growth, enhancing productivity, and driving innovation.

Canada’s $6.5 billion federal aid package for businesses affected by tariffs

In March 2025, the Canadian government announced a federal aid package consisting of:

Export Development Canada’s (EDC) Trade Impact Program: A $5 billion initiative over two years aimed at supporting exporters and their suppliers to reach new markets and navigate challenges. Products include trade credit insurance, foreign exchange facility guarantees, and working capital access.
Business Development Bank of Canada (BDC): $500 million in lower-cost loans for businesses directly impacted by tariffs and advisory services for financial management and market diversification.
Farm Credit Canada (FCC): $1 billion in financing focused on the agriculture and food sector, plus options for loan deferment.

Changes to employment insurance (EI)

The federal government also introduced enhancements to EI, including temporarily waiving the one-week waiting period, expanding the Work Sharing program to support jobs amidst fluctuations in business activity, and allowing ease of access to benefits without exhausting severance pay.

Federal tax and financing measures

The federal government announced further measures including deferring corporate income tax payments and GST/HST remittances, establishing new financing facilities, and proposing a First Mile Fund to expedite critical infrastructure project construction. A streamlined approval process for large-scale national interest infrastructure is also in effect.

Tariff relief for the auto sector

In April 2025, the federal government announced 100% Canadian tariff relief on finished Canada-United States-Mexico Agreement (CUSMA) qualifying U.S. vehicles imported into Canada. This initiative aims to support domestic automakers by incentivizing continued investment and production in Canada. Additionally, a wide range of Canadian manufacturers will be eligible for six-month tariff relief, enabling them to lower costs and remain competitive.

Automotive Remission Framework: The remission framework, which was established to encourage ongoing production in Canada’s auto sector, provides a performance-based remission process that allows automakers to import a specific number of U.S.-assembled, CUSMA-compliant vehicles tariff-free, contingent on maintaining their production levels in Canada. This structured approach is intended to help ensure that tariffs do not dissuade investment while safeguarding production within the country.
Temporary tariff relief for manufacturers: This measure includes a temporary six-month tariff relief for goods imported from the U.S. and utilized in Canadian manufacturing processes, including food and beverage packaging. The exemption also applies to goods supporting essential public services such as health care and national security.
Large Enterprise Tariff Loan facility: This facility provides loans to larger businesses, particularly those that have faced difficulties in accessing traditional financing sources. With an emphasis on contributing to Canada's food, energy, and economic security, businesses eligible for these loans are required to make efforts to maintain jobs and uphold operations within Canada.

Innovate and expand with existing federal relief programs

In addition to these new relief measures intended to combat the heightened pressures from tariffs, the federal government also has some existing opportunities that can help support growth and innovation.

CanExport SMEs program: This program offers financial assistance to Small and Medium Enterprises (SMEs) focused on international market penetration. Eligible businesses can receive up to $50,000 to cover 50% of costs related to market expansion.
FedDev Business Scale-up program: This program fosters the development, commercialization, and production of innovative products by enhancing productivity and opening new market opportunities.
Industrial Research Assistance Program (IRAP): Designed to bolster innovation, IRAP provides tools and resources for businesses to develop and bring innovative products to market.

Explore opportunities to facilitate growth

With the Canadian government actively rolling out measures to mitigate the impact of tariffs, businesses have several avenues of support to enhance their operations and maintain competitiveness. By leveraging these resources, companies can adapt to the current economic landscape, facilitating growth, innovation, and long-term sustainability.

KPMG’s Tax Incentives Practice across Canada has supported in navigating the complexities of obtaining federal and provincial government funding, especially in a rapidly changing economic environment.

Connect with our professionals to help secure opportunities for your business.