Supply-Build Canada wanted to provide you with a comprehensive summary of the current events that have occurred over the past couple of days. We encourage you to reach out to us with any feedback on the announced funding supports (explained found below), and impacts that 338 tariffs and counter-tariffs will have on your business, so we can relay it to the federal government.

Feedback Requested

We have been approached by the Housing, Infrastructure and Communities Canada as part of the initial engagement on Buy Canada policies to seek updated perspectives on the recent U.S. tariff announcements, Canada’s counter-tariff measures; and any concerns, observations, or resulting adjustments to operations or business activities.

Breakdown in Trade Talks

On August 21st the government of Canada and the U.S. were unable to reach a trade agreement on certain trade irritants regarding lumber, autos, steel, aluminum, and dairy. Unfortunately, this is a lose-lose situation for the North American supply-chain and will increase building costs. Outlined below are the impacts to building materials; and the recently announced Federal government relief support for tariff impacted businesses.

338 Tariffs

As a result of the breakdown in trade talks the U.S. has decided to impose a 50% tariff on $27.6 billion of Canadian products.

These products include: cement, gypsum board, vinyl floor tiles, carpets, paints and varnishes, wood doors and frames, plywood, LVL products, wood mouldings, particle board, and fiberboard.

For a full list of impacted materials please click here.

Canada’s Counter-tariff Measures

On August 25th, in response to the 338 Tariffs, the Government of Canada has imposed a matching $27.6 billion in counter-tariffs on products imported from the U.S at 15%, 25%, and 50% rate. According to the government the products chosen to be tariffed have been strategically targeted where Canadian-made alternatives are available.

Counter-measures on building materials include:

A full list of products tariffed can be found here.

Government of Canada Tariff Relief Funding Supports (So Far)

The federal government announced a new $7.5 billion package of measures to support Canadian businesses and workers impacted by U.S. tariffs.

Support for SMEs

The government has added $1.5 billion to the Regional Tariff Response Initiative which is delivered through the Regional Development Agencies.

• The maximum non-repayable contribution will increase from $1 million to $3 million.
• Liquidity support will be available for up to $2 million.

The Business Development Bank of Canada has also introduced a $500 million liquidity stream through its Pivot to Grow program for SMEs experiencing cash-flow pressures because of U.S. tariffs.

• Businesses directly impacted by tariffs will be eligible regardless of sector.
• Loans will range from $250,000 to $5 million and interest-only payments available for 36 months.
• The minimum annual revenue requirement will also be reduced to $1 million.
• There will be targeted support programs for steel, aluminum, and forestry sectors.

Support for Employers and Employees

To support employees and employers the federal government has announced $3.5 billion in funds.

• An employer will be able to reduce an employee's work schedule from five days a week to two while allowing the employee to collect EI for the other three days at 70% of their income (instead of the usual 55%).
• Employers can receive up to $1,000 per employee to cover the training and administration costs of implementing EI work-sharing and retention programs.
• The federal government will establish a new Workforce Retention and Retraining Program, combining the EI Work-Sharing program and the Worker Retention Grant.

Support for Shovel Ready Projects through the Canada Strong Diversification Fund

The government is also investing $2 billion to create the Canada Strong Diversification Fund which will "support tariff-impacted companies with shovel-ready projects that support ongoing capital maintenance, including medium-sized firms."

• Canada Strong Diversification Fund will be a new stream in the Strategic Response Fund.

Large Enterprise Tariff Loan (LETL) Facility to Support for large employers

The government is expanding the flexibility of the $10 billion Large Enterprise Tariff Loan facility.

• Available liquidity support will increase from 24 to 36 months of company liquidity needs.
• The maximum loan term will increase from 10 to 15 years.

Supply-Build Canada is actively tracking the trade dispute and communicating with the federal government, and will update you with any other additional information.

Tariff Relief Programs - Manitoba

On Friday, August 28, the Government of Manitoba announced more than $100 million in supports for Manitoba workers, businesses and producers in response to the U.S.’s 338 tariffs. The funding package is designed to complement the $7.5 billion federal package.

The package is split into two main categories: Support for business impacted by tariffs, and funding for the Manitoba Agricultural Services Corporation to assist the agricultural sector.

The support for businesses impacted by tariffs include:

• $50 million for the Manitoba Trade Resilience Loan Program to provide repayable working capital financing at low interest rates;
• $500,000 increase in the Export Support Program
• $250,000 to enhance existing export advisory services to support export readiness and market development
• $500,000 to the Canadian Manufacturers and Exporters to expand the Made-in-Manitoba initiative
• $13.7 million to establish a Tariff Workforce Stabilization and Youth Employment Program to provide wage subsidy supports to employers
• Allowing businesses to defer provincially administered tax payments such as retail sales tax and payroll tax payments in respect of the period of Sept. 1 to Dec. 31, 2026.

Official details have not been fully released but the province has set up Manitoba tariff hotline: 204-945-8011 or 1-877-827-4330 (1-877-TARIFF-0) for further questions.

Tariff Relief Programs - Ontario

On August 24th, the Government of Ontario announced that it would expand its existing tariff relief program, which was limited to the steel, aluminum, and auto sectors, to ensure that businesses impacted by the 388 tariffs are eligible to apply for the $1 billion Protect Ontario Financing Program (POFP).

The POFP offers working-capital term loans (minimum $250,000, up to 6 years) for established Ontario businesses with $2M+ revenue and 10+ employees whose exports are hit by Section 338 or Section 232 tariffs, and who have attempted to apply for federal support.

Tariff Relief Programs - Quebec

On August 22nd the Government of Quebec announced two new tariff relief programs through loans aimed to help businesses keep operating. Both programs are open until March 31, 2028, and are meant to complement federal funding supports.

The two loan programs are:

1. The Emergency Assistance Program for SMEs (PAUPME): To help exporter businesses or businesses who supply exporters to the U.S. with revenue between $200,000 to $2 million by providing loans up to $150,000.
2. The Offensive fund for strengthening economic capacities (FORCE): To assist manufacturers and primary-sector businesses with revenue of $2 million or more by providing loans up to $50 million.

Tariff Relief Programs – Prince Edward Island

On August 28, the Government of PEI the province announced $12.5 million in supports for 338 tariff impacted businesses which are meant to complement the $7.5 billion in federal funding.

The supports include:

1. A Tariff Working Capital Assistance Program worth $10 million and provides loans up to $500,000.
2. A PEI Tariff Impact Relief Fund: Re-funded worth $2.5 million to support impacted businesses with non-repayable grants of up to $50,000 to explore new markets, develop new supply chains, enhance participation in trade activities, and increase productivity to help them navigate this new economic landscape.
3. A Canada-PEI Workforce Tariff Response worth $3.1 million over three years to delivery training and employment services through SkillsPEI.