The federal government is stepping in with nearly $64 million in support for Quebec manufacturers hit by tariffs, but questions remain whether the funding will reach the small businesses it’s meant to help. 

The funding is part of Ottawa’s broader tariff response that will support close to 100 businesses across Quebec to remain competitive. It’s granted under the Regional Tariff Response Initiative, a part of the government’s broader response plan to U.S. tariffs that includes over $6.5 billion in protecting Canadian businesses and workers. 

“In the face of unjustified and unjustifiable tariffs hitting Canadian businesses hard, our government is taking concrete action to support Quebec SMEs. By leveraging productivity, innovation and market diversification, we are giving them the means to strengthen their supply chains and remain competitive in an uncertain commercial climate,” said Industry Minister Melanie Joly on Tuesday.

The businesses will receive funds ranging from $105,000 to $1,170,000 in non-repayable contributions. The government also estimated that the funding will create 1,110 jobs across the province.

Businesses in Quebec have already reported reduced profits, rising costs and supply chain disruptions as a result of ongoing tariff pressures.

Regions like Saguenary-Lac-Saint-Jean, Côte-Nord and Abitibi-Témiscamingue the most exposed due to tariff-hit industries like steel and aluminum, according to a recent economic report from Desjardins.  

“These investments represent meaningful support for businesses,” said Julie White, CEO of Manufacturiers & Exportateurs du Quebec in a statement sent to iPolitics. 

White said while CME looks forward to future rounds of project calls, she said more action needs to be taken to support Canada’s steel sector. 

“Policies must be aligned with the actual production capacity of Canadian steel and processing times for remission requests should be significantly shortened to ensure timely relief,” White said.  

However, the Canadian Federation of Independent Business says programs like the RTRI isn’t true relief, but designed like a grant for business projects that requires detailed project proposals rather than offering direct relief to those impacted by tariffs.

“In the context of tariffs, we felt that it was not the right approach, it should have been there for business impacted not just for those who are in a position to present the project,” said Jasmin Guénette, Vice-President of National Affairs at CFIB.

Guénette pointed to the eligibility requirements, where companies must be in business for more than three years, have more than $2 million in revenue and a certain amount of employees.

“They claim that this is to help small business, but the criteria are, in fact, excluding a large number of SMEs,” he said.

Last month, CFIB surveyed small businesses and found that 72 per cent members of the group said they were negatively impacted by tariffs, and only about 11 per cent of business owners were aware of the federal government’s Regional Tariff Response Initiative. 

Instead, the group argues broader tax relief would be more effective in giving businesses flexibility to respond to tariff pressures. 

As the deadline for the CUSMA review looms ahead, Guénette said the association is hopeful that no major changes will come out of the talks, but will continue to advocate for the major industries hit by the sectoral tariffs.