Canada Announces $1.5 Billion Emergency Support Package to Counter New U.S. Tariffs

On May 4, 2026, the Government of Canada announced a $1.5 billion support package to help Canadian businesses mitigate the impact of increased U.S. tariffs on steel, aluminum, and copper.  

Core Components of the Announcement

• New $1 Billion BDC Loan Program: * The Business Development Bank of Canada (BDC) will offer three-year, low-interest loans ranging from $2 million to $50 million.  

  
  

  • Terms: These loans feature 0% interest in the first year, followed by low rates. No repayment is required for the duration of the three-year term.  

    
    

  • Target: Specifically for manufacturers and exporters whose products heavily rely on steel, aluminum, or copper.  

    
    

• $500 Million Top-up for Regional Support:

  • Additional funding for the Regional Tariff Response Initiative (RTRI), delivered through Canada’s regional development agencies.  

    
    

  • Target: Small and medium-sized enterprises (SMEs) across all sectors.  

    
    

  • Goal: To help businesses "pivot" by diversifying markets, improving productivity, and strengthening supply chains.  

    
    

Context and Objectives

The measures were introduced following the U.S. administration's April 2026 decision to expand Section 232 tariffs, which imposed duties on products containing these metals.  

Industry Minister Mélanie Joly and Minister Evan Solomon characterized the situation as a "trade war," stating that the primary goal is to provide rapid liquidity to protect Canadian jobs and ensure the industrial economy remains resilient and competitive in a changing global market.