In 2018, the US began imposing tariffs of 25 per cent and 10 per cent on Canadian imports of steel and aluminum. Canada followed shortly after with reciprocal tariffs, and Canadian businesses reliant on either imports or exports of these metals were hit hard. In response, the Government of Canada introduced exemptions on tariffs paid by companies relying on US imports late last year.
The federal government has now announced the launch of the Regional Economic Growth through Innovation (REGI) Steel and Aluminum Initiative. Through this initiative, $100 million in funding will go to small and mid-sized businesses in the steel and aluminum industries.
This fund is intended to help enhance competitiveness and productivity among small and mid-sized businesses operating within the steel and aluminum supply chains. It will support projects for adopting and developing new innovative technologies, scaling up and expanding into new markets.
It is expected that the $100 million will be distributed among approximately 300 businesses and help maintain 5,000 jobs. Individual businesses will receive between $150,000 to $1 million to cover up to 45 per cent of project costs. To be eligible, a minimum of 20 per cent of input costs must include either steel or aluminum.
The fund will be distributed by Canada's Regional Development Agencies to businesses with between 10 and 499 full-time employees.
For more information on eligibility requirements and the application process, please visit https://www.wd-deo.gc.ca/eng/19828.asp.
Please contact a CapriCMW Risk Advisor with regards to insurance and risk management in the manufacturing industry.