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Regional Tariff Response Initiative (RTRI)
Frequently Asked Questions

Overview

1. What is the Regional Tariff Response Initiative (RTRI)?

The Regional Tariff Response Initiative (RTRI) is a federal program designed to help small- and medium-sized enterprises (SMEs) and not-for-profit organizations supporting businesses that are impacted by trade disruptions, including U.S. or Chinese tariffs, and Canadian countermeasures. It allows businesses to modernize, improve productivity, strengthen domestic supply chains, and reduce exposure to trade risks.

Originally announced in March 2025 with $450 million in funding, including $150 million specifically targeted to the steel sector, the RTRI has now been more than doubled to $1 billion over three years. This expansion allows SMEs in all impacted sectors to access non-repayable contributions of up to $1 million, enabling them to grow, diversify markets, adopt innovative technologies, and introduce new products and services.

The RTRI complements other federal tariff support programs, such as Sectoral Alliances, the Large Enterprise Tariff Loan Facility, the Business Development Bank of Canada’s Pivot to Grow initiative, and the Strategic Response Fund. Together, these measures strengthen Canada’s industrial base and support jobs.

2. What are tariffs and how do they affect my business?

A tariff, also called an import duty or customs duty, is a tax that a country imposes on products imported from other countries. Tariffs make imported products more expensive than similar domestic products and are typically collected at the border. They can increase costs for production materials, reduce sales, and create uncertainty for businesses that rely on trade.

3. Where can I find information about what the Government of Canada is doing about tariffs?

For U.S. Tariffs:

• Visit the Department of Finance website for Canada’s response to U.S. tariffs on Canadian goods.
• You may be eligible for a remission, which helps reduce or refund certain duties if you can show why you cannot source supplies from Canada or other countries.
• Programs like the Canada Border Services Agency Duties Relief Program and Duty Drawback Program may let you bring goods into Canada without paying tariffs, or get a refund later if the goods exported.

For Chinese Tariffs:

• Contact Agriculture and Agri-Food Canada for export information and support for Canadian companies exporting to China.
• Remission may be available for certain Chinese goods. Email remissions-remises@fin.gc.ca for details.
• Programs like Sustainable Canadian Agricultural Partnership, the AgriMarketing Program, AgriStability, and the AgriCompetitiveness Program can support business growth and market expansion.
• CBSA Duties Relief and Duty Drawback Programs may also apply.

4. Why have funds been set aside for the steel sector, but not other hard-hit industries?

The steel sector was targeted nationally because of the number of businesses affected and its economic impact. RTRI is flexible, however, and responsive to regional needs. ACOA has also received funding to support all affected sectors and continues to address trade-related challenges for all industries.

5. How much funding does ACOA have for the RTRI?

The total RTRI funding nationally has increased from $450 million to $1 billion, as announced on September 5, 2025. ACOA has received $80 million to ensure that Atlantic Canadian SMEs can mitigate the impacts of the tariffs and thrive.

6. How will ACOA ensure equitable distribution of funds across Atlantic regions?

Each application is evaluated according to RTRI criteria, ensuring a fair process while taking into account the unique circumstances of each region. ACOA leverages its experience with the Atlantic client base to support balanced and equitable funding decisions.

7. Where can I get help and information on the RTRI?

You can get help through:

• Your program officer, who can guide you on demonstrating tariff impacts, eligibility factors, and the application process.
• If you do not have a program officer, contact your local office at 1-888-576-4444 or through ACOA’s website, and you will be put in contact with an officer.

Eligible Recipients

8. Am I eligible for funding under the RTRI?

Under the RTRI, Canadian SMEs affected by the negative impacts of the tariffs and not-for-profit organizations that support SMEs that are affected (mostly industry or sector associations, board of trade, and the like), are eligible for the RTRI. I encourage you to speak with the ACOA office in your region to discuss the particularities of your project and determine eligibility.

9. Who can apply for RTRI funding?

Eligible applicants include businesses and not-for-profit organizations. You must demonstrate that you, or the businesses you support:

• Have been affected by trade disruptions, including newly imposed U.S. or Chinese tariffs, or Canadian counter-tariffs; and
• Were viable prior to March 21, 2025; and
• Meet one of the following criteria:
  • Have at least 25% of sales in markets affected by the tariffs; or
  • Are able to demonstrate a significant likelihood of being negatively affected by the tariffs or the uncertainty they may create, such as:
    • Increased costs for production materials or suppliers
    • Higher retail prices for finished products
    • Reduced purchase orders or sales
    • New import/export taxes or loss of market access
    • Other evidence of negative impact

10. Are Indigenous-owned businesses eligible for funding?

Yes. Indigenous entities can access funding.

11. Can my business receive RTRI non-repayable funding more than once?

No. A business may only access a non-repayable contribution from ACOA’s RTRI once during the initiative.

12. Is loan forgiveness a consideration?

No. Repayable contributions provided by ACOA cannot be forgiven. If you have received a repayable contribution, you are expected to fulfill the repayment terms. Please communicate with your program officer if you have questions or require further guidance.

13. How can I apply for funding?

If you are unsure whether the Regional Tariff Response Initiative is right for you, please speak with your local ACOA program officer, or contact the office nearest you. If you're ready to apply, send us your application through the Application for Financial Assistance page.

Activities and Costs

14. What types of activities are eligible for funding?

Eligible activities include those currently eligible under REGI and that align with the objectives of boosting productivity, catalyzing growth, and diversifying markets of SMEs and sectors impacted by tariffs and/or counter-tariffs. Examples include:

• Digitization, automation, or technology integration investments that enhance productivity and competitiveness.
• Market diagnostics, development, and expansion activities (e.g., trade missions, diversifying customer base).
• Establishing strategic alliances, optimizing supply chains, and ensuring compliance with standards to enhance domestic and global presence.
• Strengthening domestic supply chains and facilitating internal trade to improve market resilience.
• Business support, market development, and advisory services (e.g., sectoral intermediary guidance for SMEs).
• Reshoring or onshoring of production, R&D mandates, and/or recruitment of highly qualified personnel to the region.

15. What costs are eligible under RTRI?

Eligible costs must be reasonable and necessary for carrying out the project, consistent with the REGI program:

• Capital costs (e.g., machinery, equipment, and infrastructure)
• Material costs
• Labour costs (e.g., salaries, wages, and benefits)
• Consultancy fees (e.g., professional and technical services)
• Advisory expenses (e.g., planning, business information, counselling, coaching, mentoring, workshops, training, networking events, and conferences)
• Market expansion or maintenance costs

16. How will my project be assessed?

Projects are evaluated based on:

• Alignment with the objectives of the initiative: Helping businesses to undertake projects to raise productivity, enhance competitiveness and reduce costs, thereby mitigating tariff impacts.
• Enabling greater resilience among Canadian businesses through more robust domestic supply chains, enhanced internal trade, market diversification and future-proofing their operations.
• Regional economic benefits (employment, value-added, supply chain impact).
• Ability to demonstrate that the project will assist the client in mitigating any negative impact as a result of the U.S./China tariffs or Canada’s counter-tariffs.

Financial Assistance

17. Can all impacted sectors access non-repayable contributions of up to $1 million?

Possibly. Eligible SMEs impacted by the tariffs in all sectors may receive non-repayable contributions of up to $1 million if certain parameters are met. Details are still being finalized, and your program officer will be able to guide you through this process.

18. What are the stacking limits for total government funding?

• Commercial Projects: Up to 90% of eligible costs (100% for Indigenous clients)
• Non-commercial Projects: Up to 100% of eligible costs