Ottawa invests $64M in Quebec steel businesses impacted by U.S. tariffs

The Canadian government has announced it will invest $63.9 million in 99 Quebec businesses in the steel sector that have been negatively impacted by tariffs from the United States.

The funding is aimed at helping the small- and medium-sized businesses overcome challenges to commercialization and remain competitive in the long run.

The announcement was made Tuesday by Industry Minister Mélanie Joly in Repentigny.

“All of these businesses will be able to help continue to grow and to pivot, notwithstanding the fact that they’re victims of unjustified and illegal tariffs by President Trump,” said Joly, who is also the minister responsible for Canada Economic Development for Quebec Regions.

In Quebec, a 50 per cent tariff on aluminum and steel has had a significant impact on a number of companies.

The businesses are receiving anywhere from $105,000 to $1,170,000 in non-repayable contributions granted under the federal government’s regional tariff response initiative (RTRI) – with 24 of them receiving at least one million dollars.

Fourteen of the recipient businesses are based in Montreal, with several others located in Laval, Montérégie, the Laurentians and Chaudière-Appalaches.

Among them is CSF International in Repentigny, which Joly toured on Tuesday. The company, which makes steel products for store refrigerators and freezers, is receiving $1 million to acquire equipment to strengthen their competitiveness and to support their growth in international markets.

“It’s going to allow us to pretty much invest,” said the company’s president Mathieu Grenier. “We had a project of investment to grow our capacity, to grow our efficiency by acquiring new equipment that’s going to help us diversify a geographical market.

“We’re going to be able to expand to different areas. We’re going to be competitive with emerging markets, which (are) Europe, Mexico, Brazil.”

Ottawa estimates the funding will lead to the creation of 1,100 jobs across Quebec.

While acknowledging the funding is “helpful,” the Canadian Federation of Independent Business (CFIB) says the way it’s being delivered to small businesses is “not optimal.”

“We surveyed our members about the Regional Tariff Response Initiative, and awareness of the program is shockingly low. Seventy-seven per cent don’t even know the program exists, and only one per cent have applied. That tells us support isn’t reaching the businesses that need it the most,” said Vincent Pâquet, a CFIB senior policy analyst for Quebec.

Joly suggests more financial relief is on the way for businesses impacted by U.S. tariffs, notably those in the aluminum sector.

“Today we’re concentrating on steel, but there will be also another announcement for aluminum, because the program was for the steel sector and steel companies, and there’s another one also for aluminum-related companies,” she said.