**Prince Edward Island Launches Loan and Grant Programs for Businesses Affected by New U.S. Tariffs**
*Charlottetown, PEI – August 28, 2026* – The provincial government announced the relaunch of a loan program and the creation of a new grant initiative aimed at businesses that could be impacted by recently imposed United States tariffs on Canadian goods.
At a news conference in Charlottetown, Premier Rob Lantz said preliminary trade data indicates the tariffs, which took effect last weekend, could affect roughly **$10 million** in PEI exports. The tariffs were introduced by the Trump administration after the collapse of U.S.–Canadian trade negotiations on **August 21, 2026**. Lantz cautioned that the $10 million estimate may change as the full impact becomes clearer.
**Sectors and Companies Affected**
Lantz identified several PEI‑produced export categories already experiencing tariff pressures, including:
* Dairy products
* Cut flowers
* Refrigeration equipment
* Floating buoys
He cited local firms such as ADL and Vanco as examples of businesses feeling the effects. “Trade data can tell us what’s being exported and where it’s going, but it cannot tell us the full impact on a business, on its workers, or on the community that depends on it,” Lantz said.
The government urged affected companies to complete surveys on the Innovation PEI website to help tailor future responses.
**Loan Program**
The “Tariff Working Capital Assistance Program,” originally launched in spring 2025, has been relaunched with the following terms:
* Loans up to **$500,000**
* Seven‑year repayment period
* Interest rate of **4 %**, with interest‑only payments for the first two years
The province has allocated **$10 million** for this program, noting that many businesses are seeking immediate working‑capital support to manage higher costs, delayed payments, and payroll obligations.
**Grant Program**
The “Tariff Impact Relief Fund” mirrors last year’s Export Enhancement and Diversification Fund. It will provide grants of up to **$50,000** to cover up to **50 %** of eligible project costs related to:
* Marketing or researching new Canadian or international markets
* Enhancing competitiveness through technology initiatives such as digitization and artificial intelligence
A total of **$2.5 million** has been set aside for the grant program.
**Workforce Support**
Workforce Minister Zack Bell referenced a separate **$3 million** “Canada‑PEI Workforce Tariff Response Program,” announced earlier in the spring and delivered through SkillsPEI. The program offers skills training for both unemployed and employed workers.
**Export Diversification Efforts**
Trade Minister Jenn Redmond said the province is working to diversify its export markets beyond the United States and increase trade with other Canadian provinces. She warned that the latest tariff round could pose greater challenges than previous measures, which had relatively limited impact on PEI’s economy compared with provinces such as Ontario.
**Broader Context**
An analysis by University of Calgary economist Trevor Tombe projected that the U.S. tariffs could lead to **90,000** job losses across Canada, with an estimated **300** job losses for PEI. Canada announced counter‑tariffs on **$27.6 billion** worth of U.S. goods, slated to take effect on **September 8, 2026**. Initial counter‑tariffs on U.S. seafood imports were withdrawn on **August 26, 2026** after advocacy from the Atlantic seafood sector. Premier Lantz said the reversal addressed concerns raised by PEI producers and processors.
**Requests for Further Information**
The Guardian has requested a detailed breakdown of the $10 million figure related to tariff impacts; as of the deadline, the province had not provided those details. The $10 million figure represents less than **1 %** of PEI’s total export value to the United States in 2025.
**Contact**
Political reporter Stu Neatby (The Guardian, Prince Edward Island) can be reached at sneatby@postmedia.com.
Article and image source: saltwire.com
