Canadian businesses in sectors significantly affected by US tariffs (steel, aluminum, automotive, forest products and other industries)
Services
Canada Strong Diversification Fund
ISED fund for larger players facing US tariff impacts: Stream 1 funds projects pivoting operations to alternative markets, diversifying production and securing strategic investment (projects with over $20M eligible costs and federal requests of $10M or more); Stream 2 provides non-repayable capital-maintenance support of $5M-$30M for up to two years to firms hit by Section 338 tariffs.
Overview
ISED fund for larger players facing US tariff impacts: Stream 1 funds projects pivoting operations to alternative markets, diversifying production and securing strategic investment (projects with over $20M eligible costs and federal requests of $10M or more); Stream 2 provides non-repayable capital-maintenance support of $5M-$30M for up to two years to firms hit by Section 338 tariffs.
Key numbers
| Item | Value |
|---|---|
| Instrument | contribution |
| Level | federal |
| Region | Canada |
| Administrator | Innovation, Science and Economic Development Canada (ISED) |
| Min per project | $5,000,000 |
| Max per project | $30,000,000 |
| Intake status | Open (continuous intake on a first-come, first-served basis until funding is fully committed) |
| Non-US bias | Pivot to alternative markets and strengthen domestic self-reliance in response to US tariffs |
Eligibility
Stream 1
projects with eligible costs above $20M and federal contribution requests of $10M or more; priority for highly trade-exposed sectors, large-scale pivot projects, projects critical to industrial or skills capacity, and projects accelerating domestic demand and exports
Stream 2 (capital maintenance)
incorporated or registered in Canada (for-profit or not-for-profit), minimum 10 FTE employees, minimum $20M annual revenue, minimum $5M average annual CAPEX over the last three fiscal years, and demonstrated direct or indirect impact of US Section 338 tariffs
Stream 2 sectors include wood/paper, plastics, ICT manufacturing, machinery, electrical equipment, furniture, chemicals, food and beverage, textiles and apparel, and cement
Stream 2 funding requests must be for medium-term relief (up to 2 years) between $5M and $30M contributing to ongoing capital maintenance
What it covers
Stream 1
support to maintain and grow Canada's industrial capabilities, create new products and technologies for new market opportunities, and invest in productivity, materials and products for economic security; includes pre-development costs such as front-end engineering and design studies
Stream 2
non-repayable funding for capital maintenance - capitalized equipment costs, capitalized building costs and direct labour specifically supporting maintenance of capital assets
Projects that support domestic production, pivot to new markets, protect jobs and strengthen long-term competitiveness
Market and diversification rules
Funds projects responding to tariff impacts, such as adapting or pivoting existing operations or diversifying markets
Delivered under the Strategic Response Fund, which has supported steel, aluminum, automotive and forest products since September 2025
How to apply
Check your eligibility using ISED's Strategic Response Fund eligibility tool and consult ISED to determine whether your business and project qualify
Demonstrate how the project responds to tariff-related impacts and how it benefits Canada (jobs, domestic manufacturing capacity, long-term resilience)
For Stream 2, submit an expression of interest via the ISED form
Funding is allocated first-come, first-served, so apply early
Stacking notes
Contribution amounts are set in contribution agreements; applicants must be able to finance the balance of eligible costs
Priority is given to large-scale projects that both pivot toward alternative markets and include capital expenses
Notes
The CSDF focuses primarily on proposals with eligible project costs above $20 million and federal requests of $10 million or more
Stream 2 (capital maintenance) was added August 25, 2026 for industries newly impacted by tariffs, including those hit by Section 338 measures
Envelope size is not published on the eligibility page; examples of recent SRF investments include $100M to transform Canada's aluminum sector and $76.2M for Tenaris steel modernization
Relevant services
The services below are grant-eligible: CanExport and EDC reimburse up to 50% for incorporated Canadian exporters.
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Grant programs can reimburse up to 50% of eligible market-entry costs. In one free call we tell you honestly whether your product fits a non-US market.
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