HVACR Businesses May Benefit From Federal, Provincial and Territorial Responses to US Tariffs

Many of Canada’s federal and provincial governments have announced new funding for programs or tax measures to support Canadian businesses experiencing challenges during the Canada-U.S. trade dispute. Overall, governments have chosen to reduce spending on US-based goods and services during this trade dispute, and many provinces have announced new funding for training, business investment, or for business loans.

The following table shows some of the higher-profile steps taken by federal and provincial governments to support Canadian businesses. Please review this list to see if your business could benefit from new programs available in your province or territory.

Jurisdiction

New measures - highlights

Canada
  • Temporary 6-month relief for goods imported from the U.S. that are used in Canadian manufacturing
  • Large Enterprise Tariff Loan Facility (LETL), to support eligible large businesses—including those that contribute to Canada’s food security, energy security, economic security and national security—that are facing difficulties in accessing traditional sources of market financing, by providing access to liquidity.

British Columbia

Rules reducing purchases from US-based companies by BC government

Alberta

Rules reducing purchases from US-based companies by Alberta government

Saskatchewan

Rules reducing purchases from US-based companies by Saskatchewan government

Manitoba
  • Rules reducing purchases from US-based companies by Saskatchewan government
  • Manitoba tax deferrals for businesses until June 20, 2025
  • $1.5 million in grant funding for Manitoba manufacturers
  • Additional funding for upskilling workers

Ontario
  • 6-month tax deferrals for some Ontario business taxes
  • $40 million Trade-Impacted Communities Program
  • $300 million expansion of Ontario Made Manufacturing Investment Tax Credit – supporting investments in building, machinery and equipment for manufacturing and processing
  • $600 million expansion of Invest Ontario Fund to attract investments in advanced manufacturing and technology

Quebec
  • $50 million loan and subsidy program for vulnerable export-dependent Quebec businesses
  • Rules reducing purchases from US-based companies by Quebec government

New Brunswick
  • Rules reducing purchases from US-based companies by New Brunswick government
  • New or enhanced training programs for workers and entrepreneurs

Nova Scotia
  • Rules reducing purchases from US-based companies by Nova Scotia government
  • Toll increase for US commercial vehicles

PEI
  • Rules reducing purchases from US-based companies by PEI  government
  • Export Enhancement and Diversification Fund - Provides non-repayable assistance covering up to 60% of eligible costs, to a maximum of $32,000. Eligible expenses include market research, advertising, trade shows (including travel), and market strategies.
  • Tariff Working Capital Program - Offers financial relief to businesses affected by tariffs. Loans range from 6 months to 6 years, with interest-only payments for the first 12 months, followed by structured principal payments over five years.

Newfoundland and Labrador
  • Rules reducing purchases from US-based companies by Newfoundland and Labrador government
  •  

Yukon
  • Rules reducing purchases from US-based companies by Yukon government
  • $1 million support program for local businesses

Northwest Territories
  • Rules reducing purchases from US-based companies by NWT government
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