Montreal to make $36M accessible to small businesses to soften blow of U.S. tariffs

The City of Montreal recently announced measures to assist small and medium-sized businesses in dealing with the repercussions of U.S. President Donald Trump’s tariffs. This includes granting access to a $36 million fund to support businesses that will be impacted by the tariffs.

Luc Rabouin, the new leader of Projet Montréal and head of economic development on the city’s executive committee, addressed reporters on Wednesday afternoon to discuss the city’s plan. Rabouin expressed confidence in the city’s ability to navigate challenging situations, citing their success in overcoming the pandemic.

President Trump unveiled his tariff program, imposing retaliatory tariffs on imports from numerous countries. However, the White House assured that there would be no additional levies applied to Canada beyond what was previously announced. Despite this, a 25% tariff on all foreign-made automobiles was confirmed to take effect at midnight.

To aid affected businesses, the city’s business-support network, PME MTL, will allocate $36 million to eligible businesses that can prove they will be impacted by the tariffs. Additionally, businesses with loans from the network will be granted a six-month grace period on repayments to provide financial relief.

The announcement took place at Lambert & Fils, a Montreal-based company specializing in high-end lighting fixtures. Christine Charette, the director of human resources and administration at the company, anticipated a significant impact on sales due to their reliance on American clients. Charette emphasized the importance of financial assistance during this challenging period.

Rabouin emphasized the city’s commitment to supporting local businesses whenever possible. He also highlighted Quebec’s recent regulation allowing cities to impose penalties on U.S. companies bidding on municipal contracts as a protective measure for the local economy.

While Rabouin’s measures were intended to alleviate the impact of tariffs on businesses, they faced criticism from the opposition at city hall. Ensemble Montréal’s economic development spokesperson, Julien Hénault-Ratelle, dismissed the measures as recycled and lacking new funding. Rabouin responded by assuring that additional support would be provided if needed and urged entrepreneurs to reach out to PME MTL for assistance.

In conclusion, the City of Montreal is taking proactive steps to support businesses affected by tariffs and encourages consumers to prioritize local businesses. By fostering a collaborative effort between the government and businesses, Montreal aims to mitigate the economic challenges posed by external tariffs.