Canada launches C$1bn financing support for tariff-hit exporters

Canada has launched a new financing programme to support steel, aluminium and copper producers hit by rising tariff pressure.

The Business Development Bank of Canada will provide up to C$1bn in favourably priced loans for companies affected by escalating tariffs. The programme is aimed at businesses that were financially viable before becoming exposed to higher trade costs, with loans ranging from C$2mn to C$50mn over three years.

The move follows US tariffs of up to 50% on finished steel, aluminium and copper imports, alongside Canada’s own levies on US steel and aluminium products worth C$15.6bn. Additional support is also being made available through regional development agencies, while Export Development Canada has already deployed C$2.1bn under its Trade Impact Programme.

The story matters because tariff pressure is quickly becoming a working capital problem. Exporters can remain operationally strong but still face squeezed margins, delayed market pivots and strained cashflow when tariffs suddenly alter trade economics.

This is a clear example of public finance being used to stabilise exporters during trade policy disruption. It also adds to the wider trend of governments stepping in to support strategic industries as global trade becomes more fragmented.