Canada

Canada

Creates new fund to support strategic industries

05 Sep 2025

On 5 September 2025, the Government of Canada established a C$5 billion (approximately $3.7 billion) Strategic Response Fund to support large-scale investment projects in trade-exposed sectors affected by tariffs and market disruptions. The fund prioritizes pre-development and capital expenditure projects aimed at diversifying products and markets, enhancing competitiveness, maintaining critical industrial capacity and expanding domestic and export production. It may support activities at the preliminary front-end engineering design (Pre-FEED) and front-end engineering design (FEED) stages, as well as demonstration activities and favours projects with matching provincial or territorial funding. The Strategic Response Fund replaces the Strategic Innovation Fund while continuing to support innovation-oriented projects.

The fund supports large-scale investment projects in trade-exposed and strategic sectors, including forest products, steel, aluminium, automotive, artificial intelligence, advanced technologies, critical minerals, aerospace, clean technologies, biomanufacturing and life sciences.

Nature of measure:
  • Incentives
Type:
  • Promotion and facilitation (Investment incentives)
Industry:
  • Primary (Agriculture, forestry and fishing, Mining and quarrying)
  • Manufacturing (Manufacture of wood and paper products, Manufacture of basic pharmaceutical products and pharmaceutical preparations, Manufacture of basic metals, Manufacture of fabricated metal products, except machinery and equipment, Manufacture of computer, electronic and optical products, and electrical equipment, Manufacture of machinery and equipment n.e.c., Manufacture of transport equipment)
  • Services (Electricity, gas, steam and air conditioning supply, Computer programming, consultancy and related activities, Scientific research and development, Other professional, scientific and technical activities)
Inward FDI:
Yes
Outward FDI:
No
Sources: