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Tariff Support Focus: Regional Tariff Response Initiative for BC

Tariff Support Focus: Regional Tariff Response Initiative for BC

Tariff Support Focus: Regional Tariff Response Initiative for BC

The Government of Canada's Regional Tariff Response Initiative (RTRI) helps businesses respond to trade disruptions, including U.S. and Chinese tariffs and related Canadian countermeasures. In British Columbia, it is delivered by PacifiCan.

The program is aimed at businesses that were viable before the recent tariff disruptions and now need to adapt, invest, and find new paths to growth. In August 2026, the federal government announced a significant expansion of the initiative.

Businesses looking for financing rather than project funding should also look at BDC's Pivot to Grow Program.

What the program is meant to do

RTRI is project funding. It supports practical investments that improve competitiveness and resilience, including projects that help businesses:

    · boost productivity and reduce costs;

    · build more resilient supply chains;

    · find new customers or expand into new markets;

    · reduce reliance on tariff-affected markets;

    · increase domestic and interprovincial trade;

    · bring production, research, or technical capacity back into Canada.

In plain language: a business needs to show how tariffs or trade disruptions are affecting it, and how a specific investment will help it adapt.

What is changing in September 2026

On August 26, 2026, the federal government announced $1.5 billion in additional funding for RTRI nationally, along with two changes that take effect in September 2026:

    · the maximum non-repayable contribution increases from $1 million to $3 million;

    · liquidity support of up to $2 million becomes available, alongside the existing support for pivot plans and capital investments.

PacifiCan has confirmed the expansion and will publish implementation details shortly. Until those details are released, the terms below remain in effect. Businesses considering a larger project should watch for the updated guidance before finalizing an application.

Who may be eligible

Businesses may be eligible if they are:

    · incorporated;

    · staffed in British Columbia;

    · able to provide at least two complete years of externally prepared or reviewed financial statements;

    · viable before the recent U.S. and China tariff disruptions;

    · affected, or likely to be affected, by tariffs, trade disruptions, or Canadian countermeasures.

Businesses may qualify if at least 25% of sales are to the U.S. or China, or if they can otherwise demonstrate that ongoing trade disruptions are affecting, or are likely to affect, their operations.

Funding available

There are two funding options for business projects, and a project cannot combine them. A business applying for more than one project must submit a separate application for each, with distinct objectives.

Repayable funding. Interest-free repayable contributions of up to $10 million per project, covering up to 75% of eligible costs. Repayment normally begins one year after the project is completed, in equal monthly payments over five years. No collateral is required and there is no penalty for early repayment. At least 25% of eligible costs must come from non-PacifiCan sources, and at least 10% from non-government sources.

Non-repayable funding. Non-repayable contributions of up to $1 million, rising to $3 million in September 2026, covering up to 50% of eligible costs. This is generally intended for projects that generate benefits for a local economy or region and support the local supply chain. A business can receive non-repayable funding for only one project over the lifetime of RTRI. At least 50% of eligible costs must come from non-PacifiCan sources, and at least 10% from non-government sources.

Combined government assistance from all levels cannot exceed 90% of total eligible costs. Applications with stronger non-government funding may be viewed more favourably.

Examples of projects that could fit

Every application is assessed individually, but projects that may fit RTRI include:

    · a manufacturer investing in automation, robotics, or new production equipment to reduce costs;

    · a metal fabricator buying machinery or software to improve productivity or increase capacity for Canadian customers;

    · a food processor adding equipment or packaging capacity to serve more domestic or interprovincial markets;

    · an agriculture or seafood business investing in value-added processing or market development;

    · a business investing in digitization, inventory systems, or supply-chain planning to manage trade disruption;

    · a company pursuing certifications or compliance work needed to access new markets;

    · a business bringing production or technical capacity back to Canada;

    · an exporter developing new markets to reduce dependence on the U.S. or China.

Eligible and ineligible costs

Eligible costs may include labour, materials, machinery and equipment, infrastructure, professional and consulting fees, and costs related to expanding or maintaining markets. Costs may be retroactive up to 12 months before applying, but cannot predate March 21, 2025. Projects must be completed no later than March 31, 2028.

Ineligible costs include land and buildings, early-stage research and development, debt refinancing, lobbying, donations and membership fees, entertainment, bonuses and dividends, depreciation, and recoverable GST. Businesses should review the applicant guide carefully before preparing an application.

Preparing a strong application

RTRI is not a simple relief grant. Applicants need to make a business case that explains how tariffs are affecting the business, what the project is, how it will improve productivity or diversify markets or strengthen supply chains, what economic benefit it will produce, and how results will be measured.

Applicants should be ready to provide financial statements, interim financial information, forecasts, a project budget, proof of confirmed funding, and a business plan or pitch deck. Note that a commitment to obtain future bank financing does not count as confirmed funding.

PacifiCan may also ask applicants to identify expected outcomes such as revenue growth, export sales growth, jobs created, private investment attracted, and new technologies or processes that reduce production costs.

Sectors that may be prioritized

PacifiCan's applicant guide identifies forestry, metal, machinery and equipment, and agriculture and seafood as sectors that may be prioritized for non-repayable funding.

What this means for Langley businesses

RTRI is worth exploring for tariff-affected businesses planning a significant project to adapt their operations. It is likely to be most relevant to manufacturers, processors, exporters, agriculture and food businesses, machinery and equipment firms, and businesses in supply chains affected by U.S. or China trade disruptions.

The program suits businesses that have a defined project, confirmed or realistic matching funding, and a clear plan to become more competitive, productive, or resilient.

Current status

RTRI is accepting applications in British Columbia. The closing date will be set later based on demand and available funds, with at least 20 business days' notice before intake closes.

Recommended next steps:

    1. Review the RTRI program page on the PacifiCan website.

    2. Read the applicant guide for small and medium-sized businesses.

    3. Confirm whether your business and project may be eligible.

    4. Prepare your business case, project budget, financial information, and proof of funding.

    5. Apply directly through PacifiCan.

The Chamber encourages tariff-affected Langley businesses to review this program and consider whether it could support a planned investment in productivity, market diversification, supply-chain resilience, or domestic growth.

This information is provided for general guidance only and is not financial or legal advice. Program terms, eligibility and availability are set by PacifiCan and may change without notice.