Overview
When tariff pressures first escalated, many businesses viewed them as a temporary setback. Today, supply chain shifts and trade disruptions have become permanent operating realities. In response, the Canadian federal government significantly expanded the Regional Tariff Response Initiative (RTRI)—a $3.5 billion non-repayable grant program designed to protect Canadian payrolls, build supply chain resilience, and accelerate business diversification into new markets.
In this webinar, Joshua McQuarrie breaks down how the RTRI program has evolved from its initial steel and automotive focus into a flexible, multi-sector initiative open to any Canadian business impacted by US or international tariff dynamics. Learn how to leverage up to $3M in non-repayable funding across liquidity support and strategic pivot projects.
What You’ll Learn
- How the RTRI Program Has Evolved: Key differences between the initial March 2025 loan model and the expanded September 2026 non-repayable grant structure.
- Dual Funding Streams: How to combine the Liquidity Assistance Stream (up to $2M) and the Pivot Projects Stream (up to $1M) for a total grant of up to $3M.
- Eligibility Mechanics: Simple rules to qualify—whether through the 25%+ US revenue rule or general tariff-related trade disruptions (lost sales, margin squeeze, increased input costs).
- Combining RTRI with SR&ED and Provincial Grants: How to stack government programs effectively without triggering clawbacks or double-dipping issues.
- Compliance Rules: Essential guidelines on proposal strategy, self-attestations, and strict rules prohibiting success-based consulting fees for RTRI applications.
Who is this webinar for?
✓ Canadian Business Leaders & Executives: CEOs, CFOs, and Operations Directors seeking non-dilutive federal funding to offset recent market disruptions.
✓ Manufacturers & Agri-Food Producers: Companies facing increased input costs, squeezed profit margins, or shifting export demands.
✓ Exporters & Tech Companies: Businesses looking to pivot away from reliance on the US market toward expansion in Canada, Europe, or Asia.
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✓ Financial & Tax Decision-Makers: Leaders evaluating how to optimize government incentives alongside existing tax credits like SR&ED.
Q&A
Below you will find the answers to the questions raised during the webinar, prepared by our expert Joshua McQuarrie.
Please note that these answers are provided for general information purposes only and do not constitute legal, tax, or financial advice.
If you have questions related to your specific situation or that of your organization, we encourage you to contact us directly.
We are currently shipping expanded polystyrene products such as grower seedling containers for growing trees to the U.S. with tariff code 3926.90 which is now being tariffed. Is there a separate code we can use for something of this nature
We recommend connecting with our customs and duties team, who specialize in tariff classifications and duty recovery. They can review whether an alternative classification is appropriate for your products. We can also assist with an RTRI funding application and explore potential duty recovery opportunities.
When applying, would they be looking at sales to the US % from previous years? Like you mentioned, we have lost some customers as a result of this tariff war. Just trying to get an idea of the timeframe
The program generally assesses U.S. sales exposure over the two most recently completed fiscal years. However, the impact of tariffs and trade disruptions can also be demonstrated through more recent changes in sales, customer losses, or other supporting financial information.
Is the RTRI funding taxable income?
Generally, yes. Government grants received by Canadian businesses are typically taxable, although funding for capital expenditures may instead reduce the tax cost of the assets acquired. The specific treatment depends on how the funding is used and the applicable tax rules.
If a pivot project is used for R&D, I assume that would need to be deducted on SRED claim for that R&D project?
Correct. Government assistance received for expenditures that also qualify under SR&ED generally reduces the eligible SR&ED expenditure base, subject to the applicable tax rules. However, R&D activities supported by RTRI are not necessarily identical to those eligible under SR&ED. RTRI may support a broader range of R&D and commercialization activities, so there may be opportunities to leverage both programs while avoiding duplicate funding of the same expenditures.
Is it bare payroll or are benefits included ie: medical/dental, EHT costs, WCB costs ?
For eligible pivot projects, salaries and associated employee benefits may be included where they are directly attributable to the project and permitted under the applicable program guidelines. For liquidity assistance, eligible payroll is generally more restrictive and focuses on salaries and wages. Employer-related costs such as EHT, WSIB/WCB, and medical or dental benefits should be confirmed with the relevant regional development agency before inclusion.
We have lost customers in the U.S, but our overall sales have remained relatively stable can we still qualify?
Potentially, yes. A decline in overall revenue is not necessarily required. The loss of U.S. customers may help demonstrate the negative impact of tariffs or trade disruptions, even where sales have remained stable through growth in other markets. Eligibility will depend on the program’s specific criteria and the supporting evidence provided.
We have entities in British Columbia and Ontario. Do we apply in the same application?
Generally, separate applications would be required for distinct legal entities and projects in different regions. British Columbia operations would fall under PacifiCan, while Ontario operations would fall under FedDev Ontario. We would assess the corporate structure and proposed expenditures to determine the appropriate application approach.
What about if you are still pushing sales in the US because you don’t want to lose your footprint in US but the margin got very thin.
You may still qualify for RTRI support. Reduced margins resulting from tariffs can help demonstrate trade-related impacts, even if you continue selling into the U.S. Pivot projects are not necessarily limited to entering non-U.S. markets; investments that improve productivity, competitiveness, or supply-chain resilience may also qualify. Liquidity assistance may also be available, subject to the applicable eligibility requirements.
Can you please link us the resources at the end? Would they also be knowledgeable on HTS classifications from the US side of things or just Canada?
Yes, our customs and duties team has expertise in cross-border tariff classifications, including U.S. Harmonized Tariff Schedule (HTS) classifications. We would be happy to connect you with the team to review your specific products and potential options.
We operate a bowling entertainment facility in Edmonton and were planning to upgrade our bowling lanes and software, with a total project cost of approximately $1.9 million. The cost has increased significantly due to tariffs. Would we be eligible to apply for any grants? If our application is not approved, would we still be required to pay your fees?
Potentially, yes. The RTRI program, administered by PrairiesCan in Alberta, supports businesses impacted by tariffs, including those experiencing increased equipment costs. Investments in new equipment and software that improve productivity and competitiveness may qualify. However, we would need to review your project and financial information to confirm eligibility, particularly how the upgrades align with the program’s objectives.
Fee structures associated with the success of an application can not be used for this program.