Are Your Products, Suppliers Or Customers Caught In The Trade War?

Toronto, ON – September 12, 2026

The Canada–U.S. trade dispute is entering a new and potentially more disruptive phase.

Until recently, businesses mainly watched tariff rates. Now the issue is broader: U.S. import bans, restrictions on Canadian access to U.S. government contracts, threats against individual Canadian companies, higher Canadian counter-tariffs, and the possibility of further U.S. action against Canada’s automotive and manufacturing sectors.

For Canadian businesses, the question is no longer simply:

“Is my product on the tariff list?”

You also need to ask: Where do my inputs come from? Are my suppliers affected? Are my U.S. customers at risk? Will my costs increase? Could I lose access to the U.S. market—and what government assistance is available?

The Latest Back-And-Forth

Canada’s retaliatory tariffs are now in force on approximately $27.6 billion of U.S. goods, with duties ranging from 15% to 50% and affecting hundreds of products, including steel, aluminum, dairy, appliances, agricultural equipment, pulp and paper, electronics, furniture and clothing.

Washington has responded by moving beyond tariffs.

Beginning September 29, the Trump administration plans to prohibit imports of certain Canadian goods, including many alcoholic beverages, certain dairy and whey products, molasses, non-alcoholic beer and certain motorcycles and mopeds.

The U.S. is also imposing additional 50% tariffs on Canadian product categories including various cheeses, paper, aluminum products, furniture, mattresses, golf carts, motorboats and certain steel products.

It Is No Longer Only About Commodities

President Trump has threatened to prevent Bombardier aircraft from being sold in the United States unless manufacturing is moved south of the border.

The administration has also moved to exclude Canadian-origin products from major U.S. federal government procurement schedules.

And one of the biggest threats remains unresolved: the possibility of 50% U.S. tariffs on Canadian cars, trucks and automotive parts beginning January 1, 2027.

This means manufacturers, exporters, and their suppliers need to look beyond today’s tariff list and plan for what may come next.

You Can Be Affected Without Exporting A Single Product

A Canadian company can be affected because it:

• imports American machinery, components or raw materials;
• buys steel, aluminum, plastics, electronics or packaging containing U.S. inputs;
• supplies a Canadian company that exports to the United States;
• depends on U.S. customers;
• competes with tariff-affected imports;
• participates in U.S. procurement; or
• has customers delaying purchases or investments because of uncertainty.

Higher input costs can move through an entire supply chain, affecting prices, margins, investment, hiring and competitiveness.

Billions Are Available — What Government Support Should Your Business Be Looking At?

The federal government has announced a new $7.5-billion package for tariff-affected workers and businesses, on top of almost $25 billion in previously announced supports.

Depending on the size of your company, industry, location and the impact tariffs are having on your operations, programs worth examining include:

Regional Tariff Response Initiative (RTRI) — An additional $1.5 billion is being delivered through Canada’s regional development agencies to help tariff-affected small and medium-sized businesses, including liquidity assistance, productivity improvements and market diversification.

BDC Pivot to Grow — The federal government has added a $500-million liquidity stream to help businesses experiencing immediate cash-flow pressures. Access to BDC tariff programs has also been broadened by reducing the minimum applicant revenue threshold to $1 million.

Canada Strong Diversification Fund — An additional $2 billion is being provided to help tariff-affected companies undertake shovel-ready projects, capital maintenance and investments that improve resilience and reduce dependence on vulnerable markets.

Strategic Response Fund — Federal support is available to help important Canadian industries respond to U.S. tariffs, maintain operations, modernize capital investments, diversify and strengthen their competitiveness.

Large Enterprise Tariff Loan (LETL) — Large Canadian businesses significantly affected by tariffs and countermeasures can access federal liquidity financing, with new flexibilities introduced as part of Ottawa’s response.

Worker Retention and Retraining Program — Part of $3.5 billion in Rapid Response Supports for Workers and Employers, this initiative is designed to help employers retain workers during difficult periods. Employers may receive up to $1,000 per participating employee for training, subject to program requirements.

Work-Sharing Program — Businesses experiencing a temporary reduction in normal business activity may be able to reduce employees’ working hours while EI provides eligible workers with partial income support.

EDC Working Capital Guarantees and Export Support — Export Development Canada has financing and market-diversification tools available to businesses adjusting their export strategies.

Duties Relief Program — Businesses importing goods that will subsequently be exported may be able to avoid paying certain duties upfront.

Duty Drawback Program — Companies may be able to recover duties already paid on qualifying imported goods that are subsequently exported.

Tariff Remission — Businesses facing exceptional circumstances, particularly where critical inputs cannot reasonably be sourced domestically or outside the United States, should determine whether they qualify for tariff remission.

Ontario Businesses Have Additional Options

Ontario companies should also review provincial programs that run alongside federal assistance.

Protect Ontario Financing Program — Provides working-capital loans to eligible tariff-affected Ontario companies for expenses such as payroll, leases and utilities. Eligible companies generally require at least $2 million in annual revenue, 10 full-time Ontario employees and three years of operations, among other requirements.

Ontario Together Trade Fund — Helps Ontario businesses respond to U.S. trade disruption by diversifying markets, expanding manufacturing capacity, investing in technology, reshoring supply chains and creating or retaining jobs. For most eligible companies, assistance generally ranges from 10% to 20% of eligible project costs, up to $5 million, with potentially greater support for exceptional projects.

Trade-Impacted Communities Program — Ontario’s $40-million program supports projects designed to strengthen communities and industries affected by trade disruption, including economic resilience, exports, investment and strategic supply chains.

Canada–Ontario Workforce Tariff Response — Approximately $228.8 million over three years is being directed toward training and employment assistance for up to 27,000 Ontario workers affected by tariffs and global trade disruptions.

These are not necessarily programs for every company. Eligibility, eligible costs, financing terms and application requirements vary significantly. Businesses should determine which programs fit their particular circumstances before making major expenditures or restructuring decisions.

Canada Is Also Trying To Create New Opportunities

Ottawa is increasingly encouraging Canadian companies to diversify away from excessive dependence on the U.S., strengthen domestic supply chains, increase Canadian production and pursue customers in Europe, Asia and other international markets.

For some businesses, the tariff dispute may therefore create opportunities alongside the challenges—particularly for companies capable of replacing U.S. suppliers, manufacturing products domestically, expanding interprovincially or entering new export markets.

Public Support Remains Strong

Despite the economic risks, polling continues to indicate substantial Canadian support for pushing back against the United States.

That is important for businesses because it suggests this dispute may not disappear simply because the economic costs begin to increase.

Companies should be preparing for a potentially prolonged period of trade uncertainty.

How GTA Strategies Can Assist

GTA Strategies can review how the changing Canada–U.S. trade environment may affect your company, identify federal and provincial programs for which your business may qualify, assist with funding and government applications, explore tariff-relief and market-diversification opportunities, and engage appropriate government decision-makers where your company or sector is being adversely affected. Contact us and we will review your circumstances and help determine the appropriate next steps.

Don’t wait until the next tariff, ban or restriction identifies your company or product by name. The time to determine your exposure—and what government assistance may be available—is now.