The Prince Edward Island government has announced a $12.5 million financial assistance package for businesses impacted by recent U.S. tariffs. Premier Rob Lantz expressed concerns over the breakdown of trade talks between Canada and the U.S., leading to significant tariffs on Canadian exports. The province anticipates around $10 million in exports, including agricultural products like dairy, refrigeration equipment, and other goods, to be directly affected.
To help businesses cope with financial challenges, the government is relaunching the Tariff Working Capital Assistance Program. This program, managed by Finance P.E.I., will provide $10 million in working capital financing to eligible businesses. Minister Jenn Redmond highlighted updates to the program, including an extended repayment term and interest-only period, to offer more flexibility to businesses in need.
Additionally, the government is introducing the P.E.I. Tariff Impact Relief Fund, offering $2.5 million in non-repayable grants to eligible businesses, with grants of up to $50,000. These funds can be used for capital expenses, productivity enhancements, supply chain diversification, market intelligence, and trade activities. Redmond also mentioned support from the Atlantic Canada Opportunities Agency, which is providing $110 million to assist small and medium-sized businesses in the region.
To monitor the situation closely, the province has initiated a tariff impact survey for businesses. Redmond encouraged businesses to participate in the survey to ensure government programs can be adjusted effectively as conditions evolve. Minister Zack Bell emphasized support for workers through the Canada-P.E.I. Workforce Tariff Response fund, aimed at helping unemployed individuals gain new skills, assisting employers in retraining staff, and empowering workers in sectors affected by tariffs and global changes.
The government’s proactive measures aim to mitigate the impact of tariffs on businesses and workers in Prince Edward Island.