Supporting Canadian Manufacturers Facing Trade and Tariff Pressures
Administered by: Innovation, Science and Economic Development Canada (ISED)
Funding envelope: $5 billion (program expansion following SIF)
Typical project size: Projects generally exceed $20 million in total costs
Typical federal contribution: $10 million or more
Program overview
The Strategic Response Fund (SRF) is a federal program delivered by ISED that funds large-scale projects to strengthen Canada’s industrial competitiveness, resilience and long-term economic capacity. The SRF builds on the Strategic Innovation Fund (SIF) and expands its scope to address market gaps and support firms significantly affected by tariffs and trade pressures, while continuing to support innovation, commercialization and AI compute capacity.
Who can apply
Eligible applicants include:
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For-profit businesses incorporated in Canada
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Not-for-profit organizations incorporated in Canada
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Collaborative projects and partnerships carrying out business in Canada
There is no provincial restriction, applicants must be incorporated and operate in Canada.
What projects are eligible
The SRF targets large, high-impact projects that will materially strengthen Canada’s industrial base. Eligible project types include (but are not limited to):
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R&D, commercialization and technology adoption across TRLs 1–9
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Large-scale capital investments to modernize or expand production capacity (typically TRL 8–9)
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Market diversification and pivoting projects that reduce exposure to tariff/market shocks and accelerate exports
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Pre-development work (e.g., front-end engineering and design) to enable retooling or major capital projects
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AI compute and domestic data-centre development to build secure, affordable compute capacity and protect data sovereignty
Priority consideration is given to projects in trade-exposed sectors (for example: steel, aluminum, automotive supply chains) or projects that face significant revenue loss, job risk or competitiveness challenges due to tariffs.
What costs can be supported
SRF provides reimbursement of a portion of eligible project costs. Examples of supported costs include:
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Capital expenditures (equipment, new or upgraded facilities, technology)
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Direct labour, materials and other direct project costs
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Certain overhead costs (subject to program limits)
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Subcontracts and consultant costs required to deliver project outcomes
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Pre-development and design studies tied to retooling or market diversification activities
Relationship to SIF
All active SIF projects will continue under the SRF framework according to their original terms and agreements. New proposals that were being considered under SIF will now be assessed within the SRF program.
How to apply
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Early consultation with ISED program officials is recommended to confirm eligibility and alignment with SRF objectives.
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Organizations with eligible proposals may submit a funding request for review. Projects should clearly demonstrate industrial impact, job protection/creation, and how federal support will enable a large-scale transformation or market pivot.
Why this matters
The SRF is designed to de-risk major industrial investments and help Canada respond to global trade pressures while investing in future-facing capacity (including AI infrastructure). It prioritizes projects that deliver measurable economic and industrial benefits and that help safeguard Canadian supply chains and skilled jobs.
How GrantMatch can help
GrantMatch specializes in high-value federal funding opportunities. We offer:
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Rapid eligibility assessments based on SRF criteria
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Project positioning and application strategy focused on the SRF’s priorities (market diversification, tariff mitigation, large-scale impact)
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Proposal development, financial modelling support and submission management
Ready to explore SRF for your project? Contact GrantMatch and we’ll run a targeted eligibility review and next-steps plan.
