The Ford government has officially launched a $1 billion emergency tariff response program, offering companies in sectors hit by the U.S.-Canada trade war with loans of up to $40 million.
On Wednesday morning, Finance Minister Peter Bethlenfalvy and Vic Fedeli, the trade minister, unveiled the first major pillar of the government’s response to tariffs on steel, aluminum and autos from U.S. President Donald Trump.
“This new program will provide companies in the steel, aluminum and auto sectors – some of the hardest hit by U.S. tariffs — with up to $1 billion in funding support,” Bethlenfalvy explained.
“And will provide some much-needed relief for Ontario businesses who are facing working capital challenges as a result of tariffs, including payroll, lease and utility payments.”
The $1 billion confirmed Wednesday is part of a $5 billion pot announced by the Ford government during February’s snap election and confirmed in the budget that followed.
When it was announced, the government’s financial blueprint explained that the Protecting Ontario Account was designed to work together with tariff measures introduced by the federal government.
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It would include “up to $1 billion in immediate liquidity relief aimed at protecting Ontario businesses and workers facing significant tariff-related business disruptions,” the budget said.
Officials described it as “an emergency backstop for Ontario businesses that have exhausted available funding.”
Details of the remaining $4 billion have not yet been announced.
Despite announcing the fund as part of its budget in May, the $1 billion loan program is not officially up and running. Bethlenfalvy said it would be “days and weeks” rather than months before it is available to businesses.
Loans will be available ranging from $250,000 to $40 million and are only available to businesses in tariff-hit sectors like steel companies. The loans should be used to cover things like payroll, lease payments and utility bills for businesses struggling with tariffs.
“The tariffs levied by the U.S. government have left Ontario’s steel, aluminum, and auto sectors exposed to unprecedented challenges,” Fedeli said in a statement.
“Our government will provide $1 billion in critical relief to protect workers and businesses at the front lines of our economy, ensuring that critical supply chains are equipped to weather the uncertainty of today, while building resilience to seize the opportunities of tomorrow.”
The government has launched a website for businesses to work out if they’re eligible and set up a consultation.
United States President Donald Trump has had levies in place for some time on Canadian steel and aluminum, also adding 35 per cent tariffs on all goods not covered by a trade deal between the two countries at the beginning of August.
Opposition politicians previously said the Ford government was taking too long to stimulate the economy.
“Our economy is already taking a big hit with Trump’s most recent tariff hike on all Canadian goods to 35 per cent,” NDP MPP Catherine Fife said in a statement.
“Despite growing economic uncertainty and ongoing job losses, we still don’t have a plan from the Premier to protect workers and create good jobs. In order to weather this ‘Trump Storm,’ we must strategically invest in our auto sector and fight to keep these good, stable jobs in Ontario.”
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