U.S. Tariffs: What Financial Assistance Is Available to Quebec Manufacturers in 2026?

New U.S. tariffs are increasing pressure on Quebec manufacturing companies. Rising costs, declining orders, tighter margins and additional working capital requirements can quickly affect cash flow and delay important investments.

On August 21, 2026, the federal government stated that the United States intended to impose 50% tariffs on approximately $28 billion worth of Canadian products. Although these measures do not affect all Canadian exports, they significantly increase uncertainty for several industrial sectors. (Government of Canada)

To help businesses navigate this period and strengthen their competitiveness, the governments of Quebec and Canada currently offer several support programs. Among the most relevant options for Quebec manufacturers are:

• the FORCE program;
• PAUPME – Customs Tariffs;
• the Regional Tariff Response Initiative (RTRI).

However, these programs do not address the same needs. FORCE and PAUPME mainly provide loans to support liquidity, while the RTRI can directly reduce the cost of a major automation, productivity or market diversification project.

Three Programs for Three Different Types of Needs

Eligibility is not based solely on annual revenue. Each business must also demonstrate its exposure to the tariffs, their financial impact and, depending on the program, its ability to remain viable.

FORCE: Up to $50 Million to Support Liquidity

The Fonds offensif pour le renforcement des capacités économiques, better known by its acronym FORCE, is administered by Investissement Québec. The program is intended for Quebec businesses with solid prospects for profitability whose operations are affected by new U.S. tariffs of at least 25% that came into effect on or after March 4, 2025.

Main Eligibility Criteria

A business must generally:

• be registered and operating in Quebec for at least two years;
• have generated annual revenue of at least $2 million during its most recently completed fiscal year;
• have been profitable during at least one of its two most recently completed fiscal years;
• operate in manufacturing or a primary sector such as agriculture, mining or forestry;
• export products to the United States that are subject to a new U.S. tariff of at least 25%.

For applications of $10 million or less, at least 25% of the company’s annual revenue must have come from exports to the United States during one of its two most recently completed fiscal years.

Softwood lumber producers are not eligible for FORCE and should instead explore the assistance available through the FORET program.

What Financial Assistance Is Available?

FORCE provides loans of up to $50 million to cover a company’s liquidity requirements for a maximum period of one year.

The main announced terms include:

• no interest during the first year;
• a progressive interest rate beginning in the second year;
• a maximum term of seven years;
• a principal repayment deferral of up to 24 months.

For assistance of $10 million or less, eligible expenses are limited to a maximum of 50% of the revenue generated through U.S. exports during the most recently completed fiscal year.

Interested businesses should contact their Investissement Québec account manager or the organization’s information service. (Investissement Québec – FORCE Program)

PAUPME: Up to $150,000 for Businesses With Revenue Between $1 Million and $2 Million

The Programme d’aide d’urgence aux petites et moyennes entreprises – Tarifs douaniers is intended for smaller businesses experiencing financial difficulties because of U.S. tariffs.

Unlike FORCE, PAUPME may also be available to suppliers and subcontractors of affected exporting companies.

Main Eligibility Criteria

To qualify, a business must generally:

• have its head office in Quebec;
• have been registered with the Quebec Enterprise Register for at least two years;
• have generated annual revenue of at least $1 million and no more than $2 million during its most recently completed fiscal year;
• export tariff-affected products to the United States or supply an affected exporting company;
• have generated at least 25% of its 2024 revenue directly or indirectly from exports to the United States;
• demonstrate a decrease in revenue of at least 20% compared with 2024 or project a tariff-related decrease of at least 20% beginning in 2026;
• have been profitable during at least one of its two most recently completed fiscal years;
• demonstrate reasonable prospects of profitability over the medium term.

What Financial Assistance Is Available?

PAUPME provides loans of up to $150,000. The assistance may cover up to 75% of a company’s liquidity requirements for a 12-month period.

The terms include:

• a 0% interest rate during the first 12 months;
• a 12-month principal repayment deferral;
• the possibility of an additional deferral, depending on the applicable conditions;
• a maximum amortization period of 60 months, excluding repayment deferrals.

The company must also submit an adaptation plan or agree to submit one within 12 months of receiving the assistance. This plan may address productivity improvements, market diversification or product adaptation.

Applications are administered by Quebec’s regional county municipalities, municipalities or organizations responsible for managing local investment funds. The program’s current terms remain in effect until March 31, 2028. (Government of Quebec – PAUPME Customs Tariffs)

RTRI: Up to $1 Million in Non-Repayable Assistance for Major Projects

The Regional Tariff Response Initiative is administered in Quebec by Canada Economic Development for Quebec Regions.

While FORCE and PAUPME primarily address immediate liquidity requirements, the RTRI supports investments that help manufacturers become more productive, competitive and resilient to trade disruptions.

Eligible Businesses

To qualify, a business must generally:

• be a manufacturing SME with fewer than 500 employees;
• be located and operating in Quebec;
• have been operating for at least three years;
• have generated annual revenue of at least $2 million during its most recently completed fiscal year;
• demonstrate a negative impact from the tariff environment, such as lost revenue, increased costs or reduced profitability;
• have been viable before the tariffs were imposed, specifically before March 21, 2025;
• present a major project that improves competitiveness or supports market diversification.

What Financial Assistance Is Available?

The RTRI offers several forms of assistance:

• up to $1 million in non-repayable assistance for major projects combining productivity and market diversification;
• up to $300,000 in non-repayable assistance for projects focused exclusively on market diversification;
• repayable contributions of more than $1 million for certain major strategic investments.

The maximum assistance rate is 50% for projects receiving a non-repayable contribution. The minimum amount of assistance is $100,000.

Applications are processed on an ongoing basis until the program’s funding has been fully allocated. (Canada Economic Development – Regional Tariff Response Initiative)

Can a Robotics Project Qualify for the RTRI?

Yes. Automation, robotics, digital transformation and the acquisition of technologies designed to improve productivity are among the activities that may be supported.

An eligible project could involve:

• automating a manual operation that is difficult to staff;
• integrating a robotic welding, assembly, material handling or palletizing cell;
• adapting a production line to manufacture new products;
• significantly increasing productivity and reducing manufacturing costs;
• integrating a machine vision system or digital technology;
• reducing material waste, lead times or dependence on vulnerable inputs;
• developing new production capabilities to access additional markets.

However, the project must create a significant, lasting and measurable change in the company’s operations. Simply replacing a piece of equipment with a similar model or achieving a marginal increase in capacity may not be considered sufficiently transformative.

To strengthen its application, the company should be able to demonstrate expected results such as lower production costs, increased capacity, improved quality, shorter lead times, reduced dependence on labour or access to new markets.

Can These Programs Be Combined?

The programs may be complementary because they do not necessarily address the same financial requirements.

For example, a business could:

• use FORCE or PAUPME to address temporary liquidity pressures;
• submit a separate automation or diversification project under the RTRI.

However, government assistance stacking rules must be verified. The same expense cannot be funded twice, and businesses are generally required to disclose all government assistance they have requested or received.

Before signing a contract, ordering equipment or incurring expenses, the company should confirm the eligible project start date with the organization administering the program.

Documents to Prepare

Businesses affected by the tariffs should begin preparing their files as soon as possible. The following documents will generally be useful:

• financial statements for the past two or three fiscal years;
• interim financial results;
• sales data by customer, product and market;
• the proportion of revenue generated directly or indirectly from the United States;
• documentation showing that the affected products are subject to tariffs;
• a 12-month cash flow forecast;
• an adaptation plan;
• a technical project description;
• a detailed budget and supplier quotations;
• estimated productivity gains and expected results;
• a list of other government assistance requested or received.

Turning Tariff Pressure Into a Productivity Project

U.S. tariffs represent a significant challenge for Quebec manufacturers. However, the programs currently available may provide the financial flexibility required to maintain operations and invest in long-term competitiveness.

The first step is to distinguish between two different needs:

1. Does the company need additional liquidity to navigate a difficult period?
2. Does it need to invest in automation, productivity or diversification to reduce its vulnerability over the long term?

Revtech can help manufacturers define the technical scope of their robotics and automation projects, evaluate possible solutions and estimate productivity gains. A properly structured pre-engineering study can also facilitate the preparation of the budget, implementation schedule and measurable results required for a financial assistance application.

Program criteria, funding envelopes and availability can change quickly. The information in this article was verified on August 25, 2026. Before incurring expenses, contact the organization responsible for the program to confirm the eligibility of your business and project.