Yukon businesses hit by U.S. tariffs eligible for grants under new 'trade resilience program'

The Yukon government is launching a fund to help businesses affected by tariffs.

The new "trade resilience program" has three funding streams: for businesses, for business associations and for government-commissioned projects. The total fund is $1 million. 

Eligible businesses must prove tariffs have injured them, and submit a strategy for pivoting away from reliance on the U.S. economy. Businesses are eligible to receive a maximum of $50,000.

The funding was announced Thursday. Applications are open now, and expressions of interest are due in the fall.

The government is rolling out this strategy with potential increased tariffs on the horizon. The U.S. recently threatened to raise tariffs on Canadian goods to 35 per cent on Aug. 1. 

Ranj Pillai, minister of economic development, says the territory wants to be prepared for the future.

"We still don't know what's going to happen …. Every two or three weeks, you see some strong language coming from south of the border," Pillai said. 

"We'll future-proof our economy. And if there's something more dramatic that happens, we'll be ready for it."

According to Pillai, manufacturing companies in the Yukon have been hardest hit by tariffs. Companies that import goods from the U.S. might want to take advantage of the fund to source materials from elsewhere, he said. 

The fund was shaped by consultation with the Yukon's chambers of commerce, according to Pillai.

Andrei Samson, the Whitehorse Chamber of Commerce's executive director, said in a statement that the new program is a "timely and strategic step."

"Targeted support and flexibility are critical to strengthening Yukon's economic resilience and building a more self-reliant future," Samson said.