Province, feds fund $5M program to connect Ontario businesses to European markets amid tariff threats

Province, feds fund $5M program to connect Ontario businesses to European markets amid tariff threats

Up to 70 companies facing tariff-related challenges will receive support to expand market reach

Some Ontario products will soon be making their way overseas to Europe, all thanks to the latest collaboration and funding announcement between the federal and provincial governments.

The news comes as Canada looks to diversify its exports in response to tariffs levied by U.S. President Donald Trump. Last week, he imposed a 50 per cent tariff on various Canadian goods to take effect on Aug. 19.

The new program, dubbed GoEU, will help up to 70 Ontario companies diversify their market reach and explore export opportunities in Europe, said Minister Evan Solomon, who is responsible for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

Solomon said the Toronto Business Development Centre (TBDC) is taking on the $5 million project — half of which is being funded through FedDev Ontario and the remaining half by Ontario. TBDC is a non-profit established by the City of Toronto that helps Ontario and European businesses expand.

"Being an entrepreneur is non-stop," Solomon said at a news conference Thursday. "If you're not solving problems during the day, you're up at night worrying about finances. It's competitive out there, the world is changing."

You add that to the normal difficulties of building, he said, and then there's a trade war.

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According to a federal news release, TBDC will prioritize firms' export diversification due to tariff-related pressures, such as those in the automotive and steel industries. It will also utilize in-market support to share on-the-ground insights and connections.

Vic Fedeli, provincial minister of economic development, said business relationships in the U.S. have been undercut by tariffs, with many taking "direct aim at the strategic industries that anchor" Ontario.

He said the province and country are working to be "nimble" to adjust to challenges. Fedeli noted that Ontario's non-U.S. exports have increased by 75 per cent since 2018.

"These tariffs are putting a chill on our businesses," he said. "They have reinforced the urgent need for us to accelerate our trade diversification efforts."

"This is an opportunity to really turn this around. I can't wait for the success stories that come out of this."

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Last week a senior U.S. administration official said the latest tariffs are in response to several trade irritants, such as Canada's closed dairy market and provincial bans on U.S. alcohol.

It also comes as Canada alone marked the long-awaited opening of the Gordie Howe International Bridge in Windsor, Ont. last week. The bridge was lauded for its economic potential with the U.S.

TBDC will support business' expansion in EU: chairman

Vikram Khurana, chairman of the TBDC, said the organization will help "de-risk" the journey Ontario companies take when venturing out of their comfort zones outside North America.

He said the program will first study each business, how they compare to the market and what they can do next, before taking a trip to meet with customers and investors in Europe.

If anyone wants to buy products from a company, Khurana said TBDC will help determine what it will take to fulfill that order.

"We want this to be within $10,000. We don't want people to break the bank trying to explore a market and meet a few customers," he said.

"The company has always been about the little guys. And the little guys, they become big guys."

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Solomon said it's critical for Canada to have an innovation centre to help businesses push through to explore new markets and opportunities.

"The government is setting an ambitious goal to double Canada's exports outside of the U.S. within the next decade," he said.

"We need to build this country together. It's not going to be easy. But I'll tell you what it's going to be the singularly most rewarding thing of our lives."

Arrthy Thayaparan is a writer at CBC Toronto with interests in health, climate, education and community stories. You can contact her at arrthy.thayaparan@cbc.ca.