Feds invest millions into local businesses through tariff response program
Posted Jul 24, 2026 10:16:13 AM.
Last Updated Jul 24, 2026 01:50:58 PM.
Some big cash was announced this week for Waterloo and Brant region businesses, businesses struggling as the U.S. threatens more tariffs on Canadian goods.
Cash to the tune of $40.5 million is coming from the Canadian Regional Tariff Response Initiative and the Regional Defence Investment Initiative for 23 businesses.
In Waterloo Region, 16 businesses will benefit, the majority of which are in Cambridge and Waterloo.
Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), Evan Solomon, was in Kitchener to make the announcement.
“The Government of Canada is making strategic investments to help businesses and organizations overcome tariff-related challenges, strengthen Canada’s economic foundation, build Canada’s defence industrial base and advance critical technologies that support our defence and security capabilities,” said Solomon.
“By supporting businesses and workers today, we are building a more resilient economy for tomorrow. I’m thrilled to support the 23 Waterloo and Brant region businesses that are driving growth, innovation, opportunity, and resilience in our communities.”
Of those businesses, XL Tool is based in Kitchener, where the Thursday announcement was held.
The group is taking on an over $4-million project to dive deeper into the defence and aerospace markets. The new cash from FedDev Ontario will support $ 1 million of that.
“This funding will help us enhance our manufacturing capabilities, create high-value jobs, and continue delivering world-class products while strengthening Canada’s industrial competitiveness,” said Vice President of Operations at XL Tool, Chris Hergott.
“We also believe that continued investment in education, apprenticeships, and skilled trades training is essential to preparing the next generation of workers and equipping them with the skills needed to support a sustainable, competitive, and prosperous future for Canada.”
The 23 businesses receiving funding are listed below:
Cambridge:
- Armour Alloys
- Ascension Automation Solutions
- Bock North America
- Cello Products
- Eclipse Automation
- Emtek Processed Alloys Inc
- MW Canada
- NV Piping Systems
Waterloo:
- Canadian Strategic Missions Corporation
- Navitas Vehicle Systems
- Qorsa Corporation
- Quantum Valley Ideas Laboratories
- VueReal
Kitchener:
- LabsCubed
- XLTool
Elmira:
- Trylon TSF
Brant Region:
- Walters Inc.
- SLACAN Industries
- Massilly North America
- Koolatron
- Fowler Metal Industries
- Cravo Equipment
- Canada Steel Corporation
The Canadian government’s Regional Tariff Response Initiative boasts $1.95 billion in support for businesses to increase competitiveness across all sectors.
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