Durham Region businesses and workers affected by the escalating Canada-U.S. trade dispute could have access to new financing, employment and training supports under a $7.5-billion federal tariff-relief package announced this week.
The Durham tariff relief options are part of a national package unveiled by Ottawa on Aug. 25 after the United States imposed new 50 per cent tariffs on $27.6 billion worth of Canadian goods.
The federal government says the $7.5 billion builds on nearly $25 billion in tariff-related supports introduced over the previous 18 months.
$2 billion for business diversification
One of the largest business measures is a new $2-billion Canada Strong Diversification Fund.
The fund will be administered through the Strategic Response Fund and is intended to help tariff-affected companies advance ready-to-launch projects, maintain capital investment and reduce exposure to trade disruptions.
The federal government says the program will work with regional development agencies to assess projects and direct businesses toward appropriate support.
$1.5 billion added for regional businesses
Ottawa is also adding $1.5 billion to the Regional Tariff Response Initiative.
For businesses in Durham Region and elsewhere in southern Ontario, the program is delivered through FedDev Ontario.
Beginning in September, the maximum non-repayable contribution is set to increase from $1 million to $3 million. The program will also offer up to $2 million in liquidity support for eligible businesses facing tariff-related financial pressure.
Eligibility varies by project and company, so the announcement does not mean every Durham business automatically qualifies.
BDC adds $500 million financing stream
The Business Development Bank of Canada is receiving another $500 million for a new liquidity stream through its Pivot to Grow program.
BDC says eligible Canadian companies affected by the latest tariffs can access loans ranging from $250,000 to $5 million.
The minimum annual revenue requirement has been lowered to $1 million. The new liquidity loans offer zero per cent interest during the first 12 months and interest-only payments during the first 36 months.
BDC says applicants must meet specific conditions demonstrating exposure to U.S. trade and tariff pressures.
These financing options could be particularly relevant to Durham manufacturers, suppliers and exporters with significant U.S. business.
$3.5 billion for workers and employers
Another $3.5 billion is being directed toward Rapid Response Supports for Workers and Employers.
The package includes extensions and additional flexibility for Employment Insurance, workplace training initiatives, improvements to Job Bank and a new Worker Retention and Retraining Program designed to help employers keep workers during periods of trade disruption.
Existing temporary EI measures already include waiving the usual one-week waiting period, allowing qualifying workers to receive benefits without first exhausting some separation payments and providing eligible long-tenured workers with up to 20 additional weeks of regular benefits.
Larger businesses also get more flexibility
Ottawa is also modifying the existing Large Enterprise Tariff Loan facility for large Canadian companies affected by tariffs.
Unlike the four funding envelopes above, this change is not another separate amount within the $7.5-billion total. Instead, it expands flexibility under an existing loan program.
What this means for Durham
The Durham tariff relief package does not contain a dedicated allocation specifically for Oshawa, Whitby, Ajax, Pickering, Clarington or the region as a whole.
Its local significance comes from the ability of eligible Durham businesses and workers to access national and southern Ontario programs as the trade dispute affects manufacturing, exporting and other industries.
The Aug. 25 announcement also came with Canada’s decision to impose additional counter-tariffs on $27.6 billion in U.S. imports beginning Sept. 8, matching the new American tariffs rate for rate.
For Durham businesses considering financing or diversification assistance, eligibility requirements and application dates should be confirmed through FedDev Ontario, BDC or the relevant federal program before making financial decisions.
