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. Companies must also have at least 10 employees and an annual revenue of at least $2 million.
The loans should be used to cover things like payroll, lease payments and utility bills for businesses struggling with tariffs.
The Canadian Federation of Independent Business said it was “concerned” by the announcement, which it worries will only help big businesses.
“While this program will help many larger businesses, criteria such as at least $2M in annual revenue, a minimum $250,000 loan requirement, and having to first explore all federal options will shut out most of our members in these sectors,” said the group, which represents roughly 39,000 businesses in the province.
“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.
Opposition politicians also voiced concerns, asking what measures were in place to protect workers on the ground and not just big business.
“There needs to be some iron-clad agreements that there are job guarantees or job certainties, so workers can keep their jobs,” NDP MPP Jessica Bell said.
“Looking at the fund, it seems like money is going to go out — but what do workers get in return? Where’s the certainty there? We’re not seeing it.”
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