In the face of escalating global trade tensions, the Government of Canada, through Pacific Economic Development Canada (PacifiCan), unveiled an expanded Regional Tariff Response Initiative (RTRI) for British Columbia.
As described on the Government of Canada’s website, the Regional Tariff Response Initiative (RTRI) is delivered by Canada’s regional development agencies (RDAs).
It is part of the Government of Canada’s strategy to protect Canadian jobs, industries and supply chains in light of Donald Trump’s tariffs.
“British Columbians have the determination, talent and ambition to thrive at home and in markets around the world. With this investment, PacifiCan is empowering local businesses to find new pathways for growth and contribute to one Canadian economy – building prosperity here in B.C. and across the country.” —Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for PacifiCan.
The newly announced plan more than doubles the national investment in RTRI from $450 million to $1 billion over three years—a lifeline for small and medium-sized enterprises (SMEs) across B.C. grappling with increasingly volatile trade winds.
What RTRI Offers
Funding flexibility: Support includes both grants and repayable contributions, helping SMEs adapt to or capitalize on shifting market conditions.
Targeted support for key sectors: Up to $150 million is earmarked for SMEs in the steel sector to help stabilize operations and promote resilience.
Empowered SMEs: Applicants must show they’ve been affected by trade disruptions or that 25% of their sales are to the U.S. or China; those in steel and auto sectors can qualify for non-repayable funding.
Accessible application periods: The B.C. rollout, managed by PacifiCan, launches on September 15, 2025, with online details and application tools to follow.
Criticisms of RTRI
Application complexity: While the funding is generous, SMEs may find the application requirements challenging.
Proving export percentages or trade impacts can be especially burdensome for smaller businesses. Sectors beyond steel or auto may feel less assured of meaningful support.
Unclear upper funding limits: Apart from specific caps for steel-based projects, funding ceilings for other industries remain vague, potentially leading to uncertainty.
Speed of disbursement: With applications opening mid-September, businesses facing immediate cash flow challenges (due to tariffs) may experience a timing gap.
Competition across regions: Since RTRI is national, B.C. SMEs will be vying alongside businesses elsewhere in Canada, possibly diluting regional focus.
National & Provincial context
The RTRI is part of a broader federal strategy to cushion trade-exposed sectors.
Complementary Measures: RTRI joins the Large Enterprise Tariff Loan Facility, BDC’s Pivot to Grow program, the Strategic Response Fund, and targeted support like the $150 million steel sector investment
Provincial Backdrop: Meanwhile, B.C. passed the Economic Stabilization (Tariff Response) Act on May 29, 2025. This has enabled swift provincial action such as prioritizing Canadian suppliers and imposing fees on U.S. commercial vehicles.
Earlier, Premier David Eby criticized the “unfair” trade landscape and pledged to “defend British Columbians” by deploying emergency legislative tools.
This includes everything from internal trade barrier removal to focusing on low-carbon fuel production and supporting major investments worth billions.
Passing the test of time
The Regional Tariff Response Initiative underscores a firm federal commitment—particularly to B.C.—to shore up SMEs through direct funding and support.
It comes at a critical time, addressing both immediate trade disruption and helping businesses pivot to more stable, diversified futures.
While its strengths are clear, generous financing, targeted sectoral strategies, and regional delivery, its effectiveness will hinge on clarity of eligibility, speed of execution, and equity across sectors.
With close attention to these operational details, RTRI could become a powerful force in reinforcing British Columbia’s economic resilience. Time will tell and surely revisions will be made along the way.
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