Ontario is widening access to two provincial trade-support programs as new U.S. restrictions on Canadian alcohol, dairy products and motorcycles take effect, extending financial assistance to businesses facing mounting pressure from the Canada-U.S. trade dispute.
The province said on September 29 that affected companies will become eligible for support through the Protect Ontario Financing Program (POFP) and Ontario Together Trade Fund (OTTF). The move is intended to help businesses maintain employment, cover operating expenses, diversify exports and restructure supply chains. The latest U.S. restrictions took effect on September 29.
Ontario Widens Eligibility for $1 Billion Financing Program
The $1-billion POFP provides financing to Ontario companies affected by tariffs and other trade disruptions. Loans available through the program can be used to cover expenses including payroll, lease payments and utilities.
Eligibility will now extend to businesses affected by the latest U.S. import restrictions on Canadian alcohol, dairy products and motorcycles. The program continues to support businesses exposed to existing U.S. Section 232 tariffs affecting steel, aluminum, copper and automotive products, as well as goods affected by Section 338 measures.
“As the U.S. administration continues to threaten Ontario’s leading industries, our government remains steadfast in its commitment to protect the economy, defend our workers and lay the foundation for a strong and stable future,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “By broadening eligibility for our relief programs, we’re ensuring Ontario businesses are not only equipped to navigate the challenges of present day but can take the necessary steps to reduce long-term reliance on a single market and diversify their international exports.”
The expansion follows earlier provincial changes to trade-support programs after additional U.S. tariffs affected Canadian exports. Ontario says its objective is to provide companies with capital while encouraging them to develop alternative markets and reduce supply-chain dependence on the United States.
Ontario Together Trade Fund Expanded
The province is also expanding access to the $150-million Ontario Together Trade Fund. The program provides grants or loans to small and medium-sized Ontario businesses seeking to increase interprovincial trade or restructure supply chains away from the U.S.
“Our government is taking decisive action to protect Ontario workers, businesses and communities from ongoing U.S. trade actions that are taking direct aim at our economy,” said Peter Bethlenfalvy, Minister of Finance. “By diversifying exports, unlocking free trade within Canada and providing targeted supports for trade-impacted sectors, we are strengthening Ontario’s economic resilience and competitiveness. These measures are helping businesses adapt, attract investment and create good-paying jobs, while ensuring Ontario remains well-positioned to navigate global uncertainty and seize new opportunities for long-term growth.”
U.S. Restrictions Add Pressure on Canadian Exporters
The latest restrictions form part of a broader escalation in bilateral trade tensions. The United States announced the import bans earlier in September under Section 338 of the U.S. Tariff Act of 1930, with the measures taking effect September 29. U.S. officials have characterized the actions as a response to Canadian trade practices, while Canadian governments have challenged Washington’s approach.
Ontario has responded to the broader dispute with measures that include restrictions involving U.S. alcohol and government procurement, while also seeking to expand commerce between Canadian provinces and territories.
Earlier this year, Ontario and eight other provinces and territories reached an operating agreement enabling direct-to-consumer sales of alcoholic beverages between participating jurisdictions for personal use. The province views reducing internal trade barriers as one way to give Canadian businesses greater access to domestic customers.
Province Looks Beyond U.S. Market for Export Growth
Ontario is also increasing its focus on international export diversification through trade missions. The province led more than 60 targeted export missions in 2025 and expects to conduct nearly 70 additional missions by the end of 2026.
The strategy reflects a broader effort to reduce exposure to disruptions in Ontario’s largest international trading relationship while creating new opportunities for provincial exporters.
The province has made tariff relief and economic resilience a central part of its 2026 economic agenda, with measures aimed at businesses and workers in trade-sensitive industries.
With the newest U.S. restrictions now in force, Ontario’s expanded financing programs are intended to provide immediate liquidity to affected companies while encouraging longer-term changes in export markets and supply chains. The government says it will continue adjusting its trade-support measures as businesses contend with continuing uncertainty in the Canada-U.S. commercial relationship.