Ontario Small Business Support Grants for Tariffs

With international trade tensions intensifying and new U.S. tariffs taking effect, Canadian businesses, especially in Ontario, are facing growing uncertainty. Navigating the shifting tariff landscape requires timely support and clear guidance. 

Recognizing these challenges, both the federal and Ontario governments have launched targeted government funding programs designed to help small businesses weather the financial impact of tariffs. These initiatives aim to offset rising costs, support supply chain adaptations, and strengthen competitiveness in a volatile trade environment. 

This article outlines the current funding landscape for Ontario’s small businesses and offers guidance on how to access these resources to remain resilient. 

Understanding the Current Tariff Landscape 

In 2025, the United States introduced several rounds of tariffs on key Canadian exports. These included sweeping increases on aluminum, steel, and certain auto parts, with new 35% tariffs on additional goods scheduled to take effect on August 1. These developments have disrupted supply chains and raised input costs for many Ontario-based businesses. 

In response, the Canadian government has enacted counter-tariffs and introduced financial support to alleviate pressure on affected sectors. Ontario has similarly increased government funding support to help local businesses respond strategically. 

Federal and Provincial Government Funding Programs 

Federal Government Funding Programs 

The Canadian federal government has announced multiple initiatives to help businesses adapt to trade-related challenges: 

• EDC Trade Ready Program: Export Development Canada (EDC) offers advisory services and market-readiness tools to help exporters diversify into new markets and navigate changing trade conditions. The Trade Ready Program includes coaching, risk management solutions, and connections to international buyers. 

• Strategic Response Fund for Auto Sector: A proposed $2 billion initiative to support the Canadian automotive industry, this fund is designed to reinforce domestic supply chains and improve global competitiveness amid rising tariff pressures. 

• Trade Diversification Corridor Fund: This $5 billion infrastructure investment aims to reduce Canada’s reliance on U.S. markets by supporting new trade routes and export hubs. 

• Tariff Remission Framework: Eligible businesses can apply for relief on specific U.S. imports that are subject to tariffs, helping reduce the cost burden of sourcing critical goods. 

• Tax Relief Measures: The Canada Revenue Agency continues to provide flexibility through deferred GST/HST remittances and corporate tax payments for businesses impacted by tariffs. 

Provincial Government Funding Programs 

Ontario has also introduced several key funding programs, most notably: 

• Ontario Together Trade Fund (OTTF): Launched on April 23, 2025, the Ontario Together Trade Fund provides up to $5 million per project to help businesses offset costs related to tariff disruptions. It supports investments in re-shoring supply chains, adopting new technologies, and entering alternative markets. Projects that significantly improve trade resilience may be eligible for enhanced funding of up to 75% of costs. 

• Ontario Economic Resilience Package: Ontario has committed more than $11 billion through deferred tax payments, hiring incentives, and rebates to preserve jobs and ease cost pressures for small businesses during trade disruptions. 

Navigating the Application Process 

Accessing these funding programs effectively requires a focused approach: 

1. Assess Eligibility: Identify programs that align with your business needs and confirm your eligibility against each program’s criteria. 

2. Prepare Documentation: Gather detailed financial statements, proof of tariff-related impacts, and a clear business plan outlining how funding will be used to mitigate those impacts. 

3. Engage with Advisors: Funding consultants, such as the Ryan Canada Government Funding team, can help navigate complex application processes and strengthen the likelihood of success. 

As our team regularly advises clients, early preparation and a strong rationale are key to maximizing available government support. 

Turning Challenge Into Opportunity 

Ontario’s small businesses are navigating one of the most volatile trade environments in recent memory. While the financial impact of tariffs is real, a range of strategic funding options exists to help businesses remain competitive, adapt supply chains, and access new markets. 

By leveraging both federal and provincial funding programs, especially the Ontario Together Trade Fund and the EDC Trade Ready Program, Ontario businesses can position themselves to withstand ongoing disruptions and build long-term resilience. 

The funding landscape is shifting quickly. To determine your eligibility and secure the right support for your business, connect with our Ryan Canada Government Funding team. We’ll help you identify the best-fit programs, prepare a compelling application, and guide you from start to finish.