Series of measures to support local Montreal businesses amid U.S. tariffs

The City of Montreal is implementing a series of measures complementary to those of the Quebec government, aimed at protecting its local businesses facing unprecedented instability amid the threat of tariffs on Canadian products imposed by the United States, some of which could come into effect today.

This initiative particularly targets SMEs that are falling outside the reach of assistance programs from higher levels of government, the City said.

Measures To Support Businesses In Montreal:

• Easier access to over $36 million in financial assistance
• Six-month reprieve on capital repayment
• Direct support through the Montreal Business Line
• Monitoring measures implemented with Montreal’s economic ecosystem
• Penalties applied to American bidders

Measures are also being implemented to promote Canadian companies among the City of Montreal’s suppliers.

At a press conference Wednesday, Luc Rabouin, head of economic development and higher education on the executive committee of the City of Montreal, as well as Projet Montréal leader and mayoral candidate, said it was all about being ready to face this situation.

“We cannot now evaluate how big the impact will be, but we are ready — we are putting in place all the measures,” he said.

“Tariffs pose a threat not only to the Canadian economy, but also to the American economy,” said Montreal Mayor, Valérie Plante. “Creating inflation on both sides of the border and disruptions to supply and production chains.”

“Montreal’s economy is resilient, and we are determined to strengthen and protect it,” she added. “In collaboration with the governments of Canada and Quebec, as well as our partners like PME MTL and the metropolitan clusters, we are taking action today to support affected Montreal businesses in key sectors for the city. We must stand together to remain firm and united in the face of the tariff war.”

“The first thing we have to do is to make sure that the $36 millionthat is existing money is available for enterprises that are impacted by the measures decided by the United States,” said Rabouin. “The second thing is we give to enterprises a break to reimburse, so they can focus and keep the money in their pocket to focus to adapt the context.”

Easier access to over $36 million in financial assistance

Direct financial support for small and medium-sized businesses will be provided through Fonds PME MTL, with easier access to approximately $36 million.

“Faced with this exceptional situation, Montreal is refocusing its priorities to ensure it helps as many businesses as possible,” the City said in a press release on Wednesday.

Six-month suspension of principal repayments

Montreal announced an immediate six-month moratorium on principal and interest repayments for companies in the Fonds PME MTL portfolio directly or indirectly affected by the tariff measures.

For a business with a loan balance of $120,000, this moratorium could represent an additional $15,000 in liquidity over the next six months to help it weather the crisis.

“Exceptionally, loan amortization of up to 84 months will also be offered to eligible businesses that have been significantly impacted,” the City said.

Direct support through the Montréal Business Line

Montreal is also strengthening its Montréal Business Line (514-394-1793), which will serve as a single point of contact to guide affected businesses. T

“The City invites businesses to contact the Business Line to be directed to the appropriate programs, whether municipal, provincial, or federal,” they wrote in the press release. “This approach will aim to reduce the delays and procedures businesses may face in accessing the assistance they need during this period of instability.”

Monitoring of measures implemented with Montreal’s economic ecosystem

The City is also establishing a monitoring committee with its economic partners to support businesses.

“This committee will monitor the impact of the new tariffs on Montreal businesses,” they said. “And adapt the measures if necessary.”

“A second series of measures aimed at market diversification, increased productivity, supply chain resilience, and local purchasing are under consideration and will complement the measures announced today,” the City added.

Penalties applied to American bidders

The City of Montreal will apply penalties of 10 per cent to 25 per cent to American companies bidding on upcoming contracts, in coordination with the Quebec government’s initiative.

This measure will be implemented according to provincial guidelines, starting with specific sectors such as healthcare, manufacturing, and information technology.

“We always evaluate if there’s an alternative or not because sometimes there’s no alternative and we will absolutely need to continue to work with American companies,” Rabouin said.

“The lowest bidder rule will continue to apply,” the City explained. “But will take into account the penalty applied to American bidders on future contracts.”

Ensemble Montréal calls for more funds

Montreal’s Official Opposition critiqued the measures, calling it “rehashed rhetoric.”

In a press release, Julien Hénault-Ratelle, Ensemble Montréal spokesperson for economic development, said, “Whether it’s the ‘establishment’ of a committee of economic partners to support businesses, a hotline to help Montreal businesses, a measure that has existed since the pandemic, or the reorganization of existing funds, there’s nothing new under the sun. These are recycled envelopes, with no new money.”

Ensemble Montréal is calling on the Plante administration to deploy additional funds.