Industry Minister Mélanie Joly and Southern Ontario economic development minister Evan Solomon announced the plan in Vars, Ontario. Joly said the goal is to protect jobs and give companies the financial support they need to keep operating and growing.
The program will be run through the Business Development Bank of Canada. It will offer loans ranging from $2 million to $50 million. Businesses won’t have to pay interest in the first year, and no repayments will be required during the three-year loan period. Lower interest rates will apply after the first year.
Joly said the program responds to U.S. tariffs on steel, aluminum and copper, which include duties of up to 50 per cent on some products. Canada has already introduced its own tariffs on certain U.S. and Chinese metal imports to protect its industries.
When asked how long the U.S. tariffs might last, Joly said she does not know but stressed that Canada is taking action instead of waiting.
Some critics say the loan program is only a temporary fix and argue the government should focus on reaching a trade deal.
The government also announced an extra $500 million to help small and medium-sized businesses dealing with tariffs. Officials say there will be oversight to make sure the funding is used properly.
