Caisse de dépôt et placement du Québec (CDPQ) has launched a new program to help Quebec businesses combat the potential economic fallout from U.S. President Donald Trump’s threatened sweeping tariffs on imports from Canada.

The funding is supplemental to CDPQ’s existing programs.

The initiative aims to help companies boost productivity and explore new markets to mitigate the impact of these trade measures. Given that goal, it has widespread implications for the commercial real estate sector, particularly the industrial asset class.

CDPQ said the financial support will allow qualifying companies to “carry out, and finance, their investment projects without increasing debt or immediately diluting their capital.” In addition, recipients will be able to adapt their funding mechanism according to their respective needs to protect balance sheets and liquidity.

“We must take the current context as a call to action and use it to mobilize like never before,” said Charles Emond, CDPQ’s president and CEO. “Whether or not the tariffs materialize, it’s time to leverage all the know-how of our companies to drive Quebec forward.

“CDPQ will be there to finance productivity-boosting projects and help companies diversify their markets.”

Trump had threatened to impose 25% tariffs on all goods imported from Canada on his first day in office. He then delayed them a few days before pausing the action for at least a month.

CDPQ’s newly introduced program is built on three strategic pillars:

• Capital: CDPQ is offering flexible financing solutions that complement existing bank and financial market options. This funding will enable businesses to pursue productivity-enhancing initiatives without taking on additional debt or immediately diluting their capital, said the Montreal-based pension and insurance fund manager.
• Expertise: Through a partnership with Vooban, a Quebec leader in applied artificial intelligence (AI), CDPQ will support companies in adopting technology, including automation, robotics, digitalization, and AI applications, which are increasing being deployed in the commercial real estate sector. Businesses will be selected through an upcoming call for projects, with CDPQ providing financial assistance to the most promising initiatives.
• Network: CDPQ will offer enhanced support for companies seeking to diversify their customer base, suppliers, or operational footprint. With a portfolio of 5,000 partner companies in 70 countries, CDPQ aims to facilitate market expansion opportunities for Quebec businesses.

CDPQ ranks among Canada’s largest institutional investors, deploying capital extensively in Quebec, the rest of Canada and globally while investing in initiatives that drive long-term economic progress.

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Photo: CDPQ