The federal government is providing $1.5 billion in new support for Canadian industries affected by U.S. tariffs on steel, aluminum and copper.

The funding, announced Monday, includes a new $1-billion program through the Business Development Bank of Canada (BDC) offering financing on favourable terms to manufacturers and exporters that rely heavily on these metals and have been impacted by tariffs introduced by the United States on April 6. The program is intended to provide immediate liquidity while supporting longer-term transformation and competitiveness.

An additional $500 million will be delivered through the Regional Tariff Response Initiative (RTRI) via Canada’s regional development agencies to assist businesses across sectors, with a focus on small and medium-sized enterprises pursuing market diversification and productivity improvements.

“We are taking concrete action to strengthen Canada’s economy by standing behind our steel, aluminum and copper industries,” said Mélanie Joly. “The new measures announced today will protect workers and ensure companies have the tools and financing they need to keep operating, growing, and building Canada’s strength at home.”

The measures build on Ottawa’s broader response to what it describes as unfair tariffs, including retaliatory duties on U.S. imports, expanded financing tools, workforce supports and policies prioritising the use of Canadian steel and aluminum in public projects.

Housing and Infrastructure Minister Gregor Robertson said Prime Minister Mark Carney’s government is acting decisively to support the industries that underpin Canada’s economy. The new $1-billion program will give manufacturers and exporters the tools that they need to adapt, stay competitive and grow, strengthening Canada’s economic resilience and ensuring that its strategic industries are positioned to succeed in a changing global market.

“When markets turn unfair, Canada needs institutions that can step up and deliver fast,” said BDC President and CEO Elizabeth Hudon. “BDC is ready to get this money into the operations of steel and aluminum companies quickly, keeping their doors open and them producing.”

Ottawa is “standing shoulder-to-shoulder” with Canada’s steel and aluminium businesses, giving them the tools that they need to “cut through this tariff disruption,” she added.

Pictured: Volkswagen EV-batter manufacturing plant project in St. Mary’s, Ont., affected by tariffs.

Rendering: Volkswagen Canada