The Regional Tariff Response Initiative, delivered through Pacific Economic Development Canada (PacifiCan), provides funding and advisory services to help SMEs boost productivity and reduce costs, build more resilient supply chains, and reach new markets.

Eligible activities focus on boosting productivity, driving growth, and diversifying markets for businesses and sectors affected by recent tariffs or countermeasures. Examples include:

• Investing in digitization, automation, and technology to enhance productivity and competitiveness
• Developing and expanding markets to help businesses find new customers
• Optimizing global supply chain logistics and ensuring compliance with standards to gain market access or enhance sales
• Strengthening domestic supply chains and facilitating internal trade to increase the resilience and competitiveness of businesses and the reliability of domestic markets
• Reshoring production, research and development operations, and recruiting highly qualified personnel and expertise

Businesses with commercial projects may be eligible to receive:

• $200,000 to $10 million per project in repayable contributions, or
• $200,000 to $1 million per project in non-repayable contributions.

Not-for-profits with non-commercial projects may be eligible to receive up to $10 million per project.

A closing date for applications will be announced at a later date, but applications received by October 15, 2025 will be prioritized for review.

Learn more about the Regional Tariff Response Initiative on PacifiCan’s website.

The Work-Sharing Program helps employers and employees avoid layoffs, when there is a temporary decrease in the normal level of business activity that is beyond the control of the employer.

Work-Sharing is an agreement between employers, employees and the Government of Canada (Service Canada). This program provides Employment Insurance benefits to eligible employees who:

• agree to reduce their normal working hours, and
• share the available work while their employer recovers

The Program allows employers to:

• retain qualified and experienced workers, and
• avoid recruiting and training new employees

The Program allows employees to:

• keep their jobs, and
• maintain their work skills.

Special measures for the Work-Sharing Program have been announced in response to tariffs. Learn more about the Work-Sharing Program on the Government of Canada’s website.

To support the Canadian agriculture and food industry as tariffs are implemented, Farm Credit Canada FCC is providing $1 billion in new lending to help alleviate financial challenges.

Support Details:

• Defer principal payments for up to 12 months on existing loans (current customers)    

• Receive access to an additional credit line of up to $500,000, secured by general security agreements

• Get additional support with a term loan 

Eligibility

• For customers and non-customers who meet the necessary lending criteria 

• Businesses must be financially viable prior to the impact of the tariff 

• FCC does not provide funds in the form of grants or other interest-free loans 

Minister of Finance François-Philippe Champagne has introduced new federal measures to help Canadian businesses navigate the ongoing tariff dispute with the United States.

Highlights:

1. Tariff Remission for Automakers:
   A performance-based framework will allow automakers that maintain production and investment in Canada to import a limited number of U.S.-assembled, CUSMA-compliant vehicles without paying countermeasure tariffs.

2. Temporary Relief for Essential Inputs:
   For six months, certain U.S. goods used in Canadian manufacturing, food and beverage packaging, health care, and public safety will be eligible for tariff relief—giving businesses time to adjust supply chains or source domestically.

3. New Loan Facility for Large Enterprises:
   The Large Enterprise Tariff Loan Facility (LETL) is now open for applications. It offers liquidity to large businesses critical to Canada’s food, energy, and economic security that are struggling to access traditional financing.

Notable Dates:

• On March 4, the U.S. imposed tariffs on Canadian goods under the International Emergency Economic Powers Act. Canada responded with 25% tariffs on $30B in U.S. goods.

• On April 3, 25% U.S. tariffs on Canadian automobiles came into effect. Canada followed with reciprocal tariffs on April 9.

📄 Read the full Government of Canada press release [here].

March 7, 2025 – Ottawa, Ontario – Department of Finance Canada

Earlier this week, the United States administration imposed unjustified tariffs on Canada, disrupting a successful trading partnership and raising costs for Americans and Canadians alike. As the federal government, we will use every tool at our disposal so Canadian businesses and workers can weather this storm. We will defend Canadian jobs.

The Minister of Finance and Intergovernmental Affairs, Dominic LeBlanc, the Minister of Employment, Workforce Development and Labour, Steven MacKinnon, the Minister of Export Promotion, International Trade and Economic Development, Mary Ng, the Minister of Small Business, Rechie Valdez, and the Minister of Agriculture and Agri-Food, Lawrence MacAulay, today announced the first steps of new measures to protect Canadian businesses and workers.

To support our businesses and ensure they have the liquidity they need through this turbulent time, we will be:

• Launching the Trade Impact Program through Export Development Canada. The program will deploy $5 billion over two years, starting this year, to help exporters reach new markets for Canadian products and help companies navigate the economic challenges imposed by the tariffs, including losses from non-payment, currency fluctuations, lack of access to cash flows, and barriers to expansion.
• Making $500 million in favourably priced loans available through the Business Development Bank of Canadato support impacted businesses in sectors directly targeted by tariffs, as well as companies in their supply chains. Businesses will also benefit from advisory services in areas such as financial management and market diversification.
• Providing $1 billion in new financing through Farm Credit Canada to reduce financial barriers for the Canadian agriculture and food industry. This lending offer will help address cash flow challenges so that businesses can adjust to a new operating environment and continue to supply the high-quality agricultural and food products that Canadians rely on.

To protect our Canadian businesses from harmful takeover, the federal government also updated the Investment Canada Act Guidelines to protect Canadian companies at a time when our economy is facing unprecedented challenges. While we welcome foreign investments through an open and predictable investment climate, we must refuse foreign investments that would be harmful to our economic security.

Along with supporting businesses, we are also introducing temporary flexibilities to the EI Work-Sharing Program to increase access and maximum agreement duration. The Work-Sharing Program provides EI benefits to employees who agree with their employer to work reduced hours due to a decrease in business activity beyond their employer’s control. This helps employers retain experienced workers and avoid layoffs and helps workers maintain their employment and skills while supplementing the reduced wages with EI benefits.

In the weeks and months ahead, additional measures will be brought forward to support businesses and workers as needed. The federal government will continue to work closely with provinces and territories to ensure complementary supports are in place across all jurisdictions.

Export Development Canada has shared information on what Canadian exporters need to know about the impact of potential U.S. tariffs. Existing customers are encouraged to contact their account manager to discuss their specific situation. You can also send questions to their Export Help Hub. Export Development Canada works closely with government partners, including the Business Development Bank of Canada, Farm Credit Canada, Global Affairs Canada, and Canada’s Trade Commissioner Service to prepare for all potential scenarios that could impact Canadian companies.

This BC Government Tariffs and Trade Supports page provides information on tariffs, trade agreements, and government support programs to help businesses navigate international trade. It includes resources on how tariffs impact BC businesses, guidance on preferential trade agreements, and links to financial and advisory support for exporters. Businesses can also access information on dispute resolution mechanisms and trade-related government services to ensure compliance and competitiveness in global markets.

Premier David Eby has announced new tariff-response measures with the intention of bringing forward legislation that will defend British Columbians, workers and businesses from U.S. President Donald J. Trump’s tariffs on Canadian goods and energy.

“The White House started a trade war we didn’t want, and we must answer with strength,” Premier Eby said. “We are responding to this unprecedented attack with several targeted measures and in the coming weeks we will arm ourselves with even more tools as next steps to fend off a sustained economic aggression.”

The B.C. government intends to introduce tariff-response legislation in the coming days that will give the Province new tools to defend B.C. jobs and businesses and respond swiftly and nimbly to emerging challenges brought on by Trump’s trade war. This would enable a range of responses, including the ability to remove interprovincial trade barriers, mandating that low-carbon fuels added to gasoline and diesel be produced in Canada, and allowing B.C. to apply tolls/fees to U.S. commercial vehicles using B.C. infrastructure to travel to Alaska.

“The tariffs imposed by Trump are a profound mistake and are hurting families on both sides of the border,” Premier Eby said. “My team will continue to work hard every day to defend British Columbians through this and come out stronger on the other side. Every option is on the table.”

The Province’s initial response to tariffs includes directing the BC Liquor Distribution Branch to immediately stop buying American liquor from “red” states and remove red-state brands from the shelves of public liquor stores. The B.C. government and Crown corporations have also been directed to buy Canadian goods and services first.

The counter-measures are a first step and part of a Team Canada approach that includes 25% tariffs on $155 billion worth of imported U.S. products imposed by the federal government, as well as additional measures from other provinces and territories.

First ministers have also agreed to take meaningful action to reduce barriers to internal trade and labour mobility by June 1, 2025. The B.C. government’s plan to fight back against the tariffs and defend British Columbians includes:

1. responding to U.S. tariffs with tough counter-actions and outreach to American decision-makers;
2. strengthening B.C.’s economy by expediting projects and supporting industry and workers; and
3. diversifying trade markets for B.C. products so British Columbia is less reliant on U.S. markets and customers, including by breaking down domestic trade barriers.

As part of this approach, B.C. is moving full steam ahead on new actions to seize economic opportunities and find new trade markets to reduce B.C.’s reliance on the U.S.

The Province is accelerating approvals and permits on major projects that are ready to move forward to create good jobs and support B.C.’s economy in the face of tariffs. The initial list of projects is valued at $20 billion in investment and is expected to create 8,000 family-supporting jobs, especially in rural and remote communities.

To support B.C.’s strong tariff response and ensure actions are swift, responsive and co-ordinated, Premier Eby has established a trade and economic security task force to bring together business, labour and Indigenous leadership. A new task force on agriculture and the food economy will help ensure B.C.’s food supply and food economy continue to grow in the face of tariffs, a B.C. softwood advisory council is developing a diplomatic and trade strategy to fight for B.C.’s interests in the ongoing softwood lumber dispute, and a new cabinet committee is co-ordinating the whole-of-government approach the Province is taking.

Quick Facts:

• Estimates indicate 25% tariffs on Canadian mineral exports will cost American companies more than US$11 billion and have a profound effect on the U.S. defence industry, energy production and manufacturing.
• The share of B.C.’s goods exports to the U.S. dropped to 52.8% in 2024, compared to 65.8% in 2000. At the same time, B.C. has expanded its trade relationships with key Asian markets, including China and South Korea.
• In comparison, approximately 88% of Alberta’s goods exports and an average of 76.1% of Ontario and Quebec’s goods exports went to the U.S. in 2024. This places B.C. in a relatively better position than other provinces when it comes to mitigating the impacts of U.S. tariffs. However, the impact would still be significant.
• Some sectors are more reliant on the U.S. for exports. For example, in 2024, B.C. exported approximately half of its natural gas and electricity and 74.8% of its softwood lumber to the U.S.
• For goods coming into B.C., U.S. imports make up 34.5% of total incoming trade, including machinery and equipment, agriculture and food, as well as energy products

Learn More:

To learn more about B.C.’s response to unjustified U.S. tariffs, visit: https://www2.gov.bc.ca/gov/content/employment-business/tariffs

With American travellers making up a significant share of international visitors to Vancouver Island, shifts in Canada-U.S. trade relations are more than just background noise, they can directly shape tourism patterns and business operations across the region.

Tariffs on imported goods and the threat of escalating trade disputes can impact everything from cross-border travel to the costs of running a tourism business. Whether it’s a winery sourcing bottles and labels, a lodge importing furniture, or a bike rental shop ordering gear, rising costs ripple through the industry. For small and medium-sized tourism businesses in Cowichan, these pressures add up, especially in peak seasons when demand is high and profit margins are tight.

Cross-border tensions can also influence visitor behaviour. Political uncertainty, changes in currency, or a perceived lack of welcome can all discourage travel, even when border policies remain unchanged. As noted by Destination BC, the U.S. remains one of our top markets, and any disruptions to that flow impact communities that rely on visitor spending.

In Cowichan, where tourism is built on unique experiences, from winery tours and artisanal food to hiking, paddling, and cultural events, those impacts can be deeply felt. The good news? Our communities are nimble and collaborative. The upcoming Nanaimo Infusion event is just one example of how local innovators are coming together to reimagine tourism and build economic resilience. 

To support local tourism operations through these shifting dynamics, we are here to connect you to:

• Destination BC for industry insights and international market updates
• Tourism Cowichan for local marketing tools and funding opportunities
• Tourism Industry Association of BC’s Voice of Tourism Newsletter
• Walt Judas (TIABC) Interview– What Impact Will the Tariffs Have on BC’s Tourism Industry

As trade dynamics continue to evolve, Vancouver Island’s tourism sector remains a vital, adaptable force in the provincial economy.

In response to growing trade tensions, the Economic Stabilization (Tariff Response) Act has been introduced to provide B.C. with the flexibility and tools needed to address the evolving tariff landscape. This legislation is designed to protect B.C. businesses and workers from economic disruptions caused by ongoing U.S. trade policies.

Key Features of the Tariff Response Act:

If passed, this new law will provide targeted tools to:

• Protect B.C. Businesses: Allowing the government to modify provincial laws and regulations temporarily to respond to U.S. tariff challenges and safeguard B.C.’s economy.
• Strengthen Interprovincial Trade: Reduces barriers within Canada, making it easier for businesses to trade across provinces.
• Public Infrastructure Tolls & Fees: Enables the introduction of tolls or fees on specific vehicles using provincial highways.
• Procurement Protection: Allows directives to limit public-sector purchases from the U.S. and prioritize trade with non-hostile jurisdictions.
• Time-Limited Authority: The legislation includes a sunset clause, expiring on May 28, 2027, unless repealed earlier.

Government Actions in Response to Tariffs

In addition to this new legislation, B.C. has already taken steps to counter U.S. economic pressure, including:

• Removing U.S. liquor from BCLIQUOR stores (Read More)
• Increasing Canadian biofuel content in transportation fuels (Read More)

The Economic Stabilization (Tariff Response) Act is time-limited and will be automatically repealed by May 28, 2027, unless repealed earlier. It does not override First Nations consultation or environmental regulations.

📖 Learn More About the Legislation Here

• This toolkit provides actionable advice for small and medium-sized businesses, including how to adapt supply chains and explore new markets.

As Canada continues to adapt to shifting economic conditions, the latest BDC Monthly Economic Letter offers valuable insights for entrepreneurs looking to navigate uncertainty and position their businesses for success. With trade tensions, fluctuating interest rates, and a resilient housing market shaping the economic landscape, understanding these factors is crucial for making informed business decisions.

Canada’s Economy

Despite ongoing challenges, Canada’s economy grew at an annualized rate of 2.4% in the fourth quarter of 2024, exceeding expectations. For the full year, GDP growth reached 1.5%, driven largely by consumer spending and a strong rebound in residential investments. This growth has been fueled by the Bank of Canada’s monetary easing, with interest rates dropping from 5.0% in May 2024 to 3.25% by December. However, business investments remain sluggish due to economic uncertainties.

Housing Market Recovery in Motion

One of the standout trends from the report is the recovery of the housing market. Residential investments jumped by 16.7% in Q4, supported by declining mortgage rates. This has led to a resurgence in home sales and renewed confidence in the sector. That said, entrepreneurs should be mindful of potential headwinds, including shifting immigration targets and potential new tariffs that could impact demand in the housing sector.

Employment Trends: A Mixed Picture

While job growth has slowed compared to the beginning of the year, employment remains relatively stable. After a strong start in January 2025 with 76,000 new jobs, only 1,100 positions were added in February, keeping the unemployment rate steady at 6.6%. Wage growth, however, remains positive at 3.8% year-over-year. For business owners, this signals an ongoing need to invest in workforce retention and strategic hiring practices.

Canadian Dollar Performance and Trade Considerations

The Canadian dollar has weakened slightly, trading between US$0.68 and US$0.70 in early 2025. While this makes Canadian exports more competitive globally, it also increases import costs. Entrepreneurs who rely on imported materials should plan accordingly and explore ways to mitigate cost fluctuations.

What This Means for Entrepreneurs

Given these economic conditions, here are some key strategies for business owners:

• Stay Agile: Keep a close eye on trade policies, economic shifts, and industry trends to adjust your strategy as needed.
• Financial Preparedness: Ensure your business has a solid financial plan in place, considering potential credit tightening and changes in financing conditions.
• Workforce Planning: Focus on employee retention and recruitment strategies to stay competitive in a shifting labor market.
• Customer Engagement: With an increasing preference for locally produced goods and services, businesses should consider highlighting their local impact and value proposition.

By proactively responding to these economic insights, entrepreneurs can better position themselves to thrive in an evolving market. Keeping informed and adaptable will be key to turning uncertainty into opportunity.

For a deeper dive into Canada’s economic outlook, check out the full BDC Monthly Economic Letter here.

BDC also provides financial support and strategic guidance for businesses affected by tariff-related challenges.

We are writing to share information on Canada’s Tariff  Remissions Process and Consultation on Potential Countermeasures. 

1. Federal Remissions Process:
The Government of Canada has established a framework for requesting remission of tariffs under specific circumstances. Remission allows for relief from the payment of tariffs, or the refund of tariffs already paid. The federal government will consider remission requests in instances where goods used as inputs cannot be sourced domestically or reasonably from non-U.S. sources, or in other exceptional circumstances that could have severe adverse impacts on the Canadian economy.  Requests for remission are assessed by the Department of Finance, in consultation with other relevant federal departments, and recommendations are made to the Minister of Finance.  

For more information on this, please visit: Further details on the remission framework, including the application process and eligibility criteria for relief.

2. Federal Consultation on Countermeasures:
The Government of Canada announced that it is seeking Canadians’ views on further retaliatory actions and specific feedback on a list of goods to which future retaliatory tariffs may apply. That list can be found in Table 1 of the Notice of Intent to Impose Countermeasures in Response to United States Tariffs on Canadian Goods – Canada.ca. 

The purpose of publishing this list is to be ready, if needed, to impose additional retaliatory tariffs, and to pro-actively identify any potential significant impacts to specific BC business interests related to possible future tariffs on specific U.S. goods, before they are imposed, as tariffs on those products would increase the cost of those goods imported from the U.S.
We encourage you to provide input directly to the federal government in order to amplify any B.C.-specific issues: Consultations on Canada’s Response to United States Tariffs on Canadian Goods: Comment Submission Form.

The BC Provincial Government has created a list of supports available to BC businesses impacted by tariffs, at: https://www.britishcolumbia.ca/for-bc-businesses/us-tariffs-bc/.

If you have specific information you wish to share with the Province’s Trade and Investment team, please reach out here.

B.C. Trade and Economic Security Taskforce Secretariat
Trade Policy, Analytics and Marketing Branch | Trade, Investment & Corporate Initiatives
Ministry of Jobs, Economic Development and Innovation
Email: bctestsecretariat@gov.bc.ca

• The Canada-U.S. Trade Tracker by the Business Data Lab provides real-time insights into the evolving trade relationship between Canada and the United States. This interactive tool offers up-to-date data on key trade indicators, including export trends, tariff impacts, and industry-specific developments. Designed to help businesses, policymakers, and economic analysts navigate shifting trade conditions, the tracker presents visualized data and expert analysis to highlight emerging opportunities and challenges. By monitoring trade flow changes and sector-specific trends, businesses can make informed decisions to mitigate risks and explore new market strategies.

• CFIB advocates for small businesses and offers resources to help them navigate changing trade policies.

The Greater Vancouver Board of Trade is providing key information and resources for businesses affected by tarrifs. It includes explanations of key tarrif-related issues, links to government resources, and tools to help businesses navigate trade regulations. The page is designed as a practical hub for businesses lookin to understand and mitigate the impact of tariffs on their operations.

The World Trade Centre Vancouver is also hosting a free webinar series designed to help businesses navigate U.S. tariffs, trade strategies, and market opportunities. These sessions will provide expert insights on mitigating risks, expanding to new markets, and strengthening business resilience in an evolving trade landscape. Each webinar will feature interactive discussions, live Q&A sessions, and practical strategies to help businesses successfully navigate cross-border trade. This series will cover key topics such as U.S. tariffs, global market diversification, and interprovincial trade to help your business stay competitive and resilient in these changing times.

Domestic Trade & Interprovincial Expansion

• Date:Thursday, March 27, 2025
• Time:11:00 AM – 12:30 PM PST
• Overview:For businesses looking to reduce reliance on U.S. trade, this session explores interprovincial trade opportunities, overcoming regulatory barriers, and expanding within Canada.
• Registration Link:Domestic Trade & Interprovincial Expansion

Don’t miss this opportunity to gain actionable insights and connect with trade experts. Register today for free access.

• BCEDA has taken a proactive approach to this news by issuing a Team BC press release. They have also launched a Trade Resource Hub on their website to provide businesses with resources to help them explore new markets and stay informed on the latest tariffs-related developments.

Canada and the U.S. have built a thriving economic, military and security partnership that has created vast opportunities and longstanding prosperity for both countries.

The Government of Canada is providing resources and solutions to help you manage the potential effects of the evolving Canada-United States relationship.

Tuesday, July 22, 2025

British Columbia shoppers will have more choice, while workers and professionals will have greater freedom to move between provinces after the signing of three internal trade agreements at the Council of the Federation.

Premier David Eby signed separate agreements with Ontario Premier Doug Ford, Manitoba Premier Wab Kinew and Yukon Premier Mike Pemberton. All have agreed to continue working to remove trade barriers between provinces and territories.

“At a time when we’re facing an unprecedented attack on our economy, it’s more important than ever that we work together to remove trade barriers between provinces,” Premier Eby said. “With these trade agreements, we’re making it easier to buy and sell our great Canadian products to our fellow Canadian neighbours. This is another important step towards building a stronger economy here at home — one that’s less reliant on the U.S and works better for people.”

The agreement with Ontario makes it easier for people in regulated trades and professions to work in either province. The two provinces also agreed to work on a framework for a direct-to-consumer system for alcoholic beverages, so producers will have easier access to markets, while consumers will get more choice.

The Manitoba agreement includes measures to increase the mobility of regulated workers and professionals. B.C. will also endeavour to allow alcoholic beverages from Manitoba to be sold directly to B.C. consumers. Manitoba already permits this for B.C.’s alcoholic beverages.

B.C. and Yukon agreed to collaborate on removing barriers to trade. Both will also align standards for regulated occupations and registration processes. In May, both governments signed a memorandum of understanding to collaborate on the potential of connecting electrical grids.

The agreements were signed during a gathering of all 13 provincial and territorial premiers at the Council of the Federation meeting in Huntsville, Ont.

Topics discussed at the council’s summer meeting, which was hosted by Premier Ford, included health, public safety, energy security, labour mobility, immigration, Canada-U.S. relations, sovereignty and national security, emergency management, and energy security, as well as international and internal trade.

When signing the agreements, Premier Eby presented B.C.-themed gifts to his fellow premiers, including a signed B.C. Lions football jersey for Premier Kinew.

Quotes:

Doug Ford, Premier of Ontario –

“With President Trump’s ongoing threats to our economy, there’s never been a more important time to boost internal trade to build a more competitive, resilient and self-reliant economy. By signing these MOUs and working together, we’re helping Canada unlock up to $200 billion in economic potential and standing shoulder to shoulder to protect Canadian workers across the country.”

Wab Kinew, Premier of Manitoba –

“These agreements reflect Manitoba’s ongoing efforts to build a stronger, more unified Canadian economy, one where goods, services and workers can move more freely between provinces, while maintaining the highest standards for health and safety. By working with partners across the nation, we are unlocking opportunities for people and businesses and building up this country we all love so much.”

Mike Pemberton, Premier of Yukon –

“The Yukon and British Columbia already have a strong track record of working together from exploring the potential to connect our electrical grids to aligning standards across key sectors. This new internal trade agreement reinforces that collaboration and sets the stage for reducing barriers for regulated workers and professionals, so it’s easier for people to live, work, and do business across both jurisdictions.”