Prince Edward Island Tariff Impact Relief Fund

The Prince Edward Island Tariff Impact Relief Fund is designed to help Island businesses respond to the impacts of U.S. tariffs, Canadian counter tariffs and related trade disruptions. The Fund supports projects that strengthen business competitiveness, improve resilience, and help companies adapt to changing market conditions. 

Through conditionally non-repayable contributions, the temporary Fund will help eligible businesses diversify markets, increase productivity and automation, optimize supply chains, and reduce the impacts of ongoing trade uncertainty. 

The Prince Edward Island Tariff Impact Relief Fund is a temporary program and is expected to remain open until March 31, 2027, subject to available funding. Projects must be completed within six months of the program closing date (September 30, 2027).

Who is eligible for the PEI Tariff Impact Relief Fund?

To be an eligible applicant, a business must:  

• be registered to do business and actively operating in Prince Edward Island;
• demonstrate that they have experienced significant economic impacts resulting from U.S. tariffs, Canadian counter-tariffs or related trade disruptions; and,
• undertake a project that aligns with the objectives of the Fund. 

Priority will be given to businesses directly affected by the U.S. Section 338 tariffs and Canada's related counter-tariff measures. Applications from businesses experiencing indirect impacts resulting from broader trade disruptions may also be considered where a clear and significant economic impact can be demonstrated.

Non-eligible applicants include:

A business that has a defaulted outstanding debt obligation on file in the province’s Central Default Registry is not eligible for Innovation PEI assistance.

New project submissions from an applicant in default on any reporting, project completion or financial obligation to Innovation PEI will not be reviewed until a resolution to the default is reached.

What activities and costs are supported?

Eligible costs must be incurred within the project period and be a direct cost of an eligible activity, and may include:

• equipment and technology costs;
• market entry and exploration costs for new markets;
• certification and product modification costs for new market entry; and,
• advisory and consultancy costs.

Eligible activities may include:

Market Diversification and Intelligence

• entering new export markets;
• developing new customers and supply chains; 
• participating in market research and business development initiatives; and,
• assessing tariff impacts and market opportunities.

Interprovincial Trade Development

• identifying and pursuing opportunities within Canadian markets;
• developing new supplier and customer relationships across Canada; and,
• adjusting business operations to support increased interprovincial trade.

Productivity and Competitiveness

• completing process improvement and operational efficiency projects;
• implementing technology adoption and automation initiatives, including digitization and AI; and,
• integrating productivity-enhancing equipment and systems.

This list is representative, not exhaustive. Specific costs will be assessed during application evaluation and will be subject to Fund guidelines and Innovation PEI policies.  

What level of assistance is available?

Eligible applicants may receive a conditionally non-repayable grant of up to 50% of eligible project costs, up to maximum of $50,000.

An eligible business may access support for eligible costs on or after August 22, 2026, related to activities completed by September 30, 2027.

The combined funding from all non-repayable government sources cannot exceed 90 per cent of eligible costs per project.   

Funding is subject to program availability and project approval.

What criteria are used to evaluate funding applications? 

Eligible businesses that submit complete applications will be reviewed on a first-come, first-served basis. An application is considered to be complete and received when all required information has been submitted to Innovation PEI. 

Innovation PEI will assess applications based on:

• applicant and project eligibility, 
• alignment with Fund objectives, 
• measurable impact of tariff actions,
• project feasibility, 
• anticipated outcomes, 
• demonstrated need,
• availability of program funds, and
• level of assistance from other government support offered or available.

Not all projects meeting the minimum criteria may receive funding. 

Innovation PEI reserves the right to deny a grant application or request for payment if it suspects or detects fraudulent intent. 

Performance Monitoring 

If an application is approved, Innovation PEI will require the business to adhere to the terms and conditions of the Fund, as agreed to at the time of application and which will constitute a contract between Innovation PEI and the applicant.  

How do I apply?  

Innovation PEI encourages potential applicants to consult with Innovation PEI for guidance on the suitability of their project or event. If the project is not a good candidate for the PEI Tariff Impact Relief Fund, Innovation PEI may recommend alternative funding programs that may be more suitable.  

An application must be submitted before any financial or legal commitment is made on the project.  

What do I need to apply? 

To complete the application, be prepared to provide detailed business information and supporting documents including: 

• detailed description of the business's products or services;  
• description of the proposed project; 
• detailed project budget and implementation timeline; 
• information demonstrating the measurable impact of tariff actions and tariff-related trade disruptions on the business;
• relevant HS (Harmonized System) codes for tariff-impacted traded products;
• annual sales and export sales, including what percentage of sales are to the United States;
• start and end dates of the project;
• supporting documents which may include plans, quotes, or cost outlines; 
• supporting documents that demonstrate the impact of tariffs, counter-tariffs or related trade disruptions on the business; and
• the most recent comparative financial statements for the business.