B.C. Southern Interior Businesses Share $13M in Federal Tariff Funding

Published: March 3, 2026

In a significant move aimed at bolstering economic resilience, Canada’s Minister of Housing and Infrastructure, Gregor Robertson, announced an infusion of more than $13 million in funding for ten projects under the Regional Tariff Response Initiative. The announcement came during his visit to Castlegar on March 2, where he highlighted the critical importance of adapting to the new economic realities induced by tariffs.

Understanding the Regional Tariff Response Initiative

The Regional Tariff Response Initiative is part of a larger $1 billion national program designed to help businesses across Canada adjust to the challenges posed by tariffs. With the ongoing fluctuations in trade policies and economic landscapes, this initiative seeks to enhance local production capabilities, strengthen supply chains, and facilitate access to new markets. Robertson commented, “Tariffs are having a real impact on communities across B.C. That is why we are stepping up with these investments."

Investment Highlights

The funding announced is expected to be pivotal, particularly for businesses in the forestry and manufacturing sectors, which are struggling with the repercussions of tariffs. The investments not only provide immediate financial relief but also equip these sectors with the necessary tools to adapt and thrive.

Highlights of the funding distribution include:

• Kalesnikoff Lumber in Castlegar received the largest share, $5.5 million, as an interest-free loan. This prominent company, known for its innovative mass timber production facility, will utilize the funding to acquire new equipment aimed at increasing the manufacturing capacity of prefabricated components essential for a range of construction projects from housing to commercial buildings.

• Command Industries, a Kelowna-based metal manufacturer, will receive $730,000 to invest in advanced laser cutting and machining equipment for custom steel products, crucial for mass timber production and wastewater remediation.

• Heartland Economics, owned by the Westbank First Nation, will get $644,000 to enhance its capacity to produce custom-cut wood products, further diversifying its offerings.

• Rapid-Span, located in Armstrong, specializes in prefabricated bridge components and will utilize $828,000 to procure advanced equipment, including robotics, to streamline its production processes.

• Simolo Customs also in Armstrong, is set to receive $1.56 million to modernize its low-speed electric vehicle production operations, bringing battery production in-house to cut costs and enhance efficiency.

Other notable mentions include SKYTRAC in Kelowna, receiving $762,000 for advanced manufacturing technologies in satellite communication and avionics, and Axis Forestry in Kamloops, which will benefit from $590,000 to adapt its large timber harvesters for greater efficiency.

Supporting Non-Profit Initiatives

In addition to funding for for-profit businesses, the initiative also extends its reach to non-profit organizations. The Independent Lumber Manufacturers Association based in Castlegar will receive $862,000 to implement an AI and digital modernization program for its member mills, enabling them to leverage data for improved productivity. Similarly, the Forest Product Association of Canada will gain $974,000 for the development of a digital intelligence platform aimed at enhancing supply chain reliability and reducing transportation delays.

Prospective Impact on Communities

The ripple effects of this funding extend far beyond the immediate financial benefits. By strengthening local businesses and fostering innovation, the initiative aims to protect jobs and stimulate economic growth in critical sectors of the province. As Minister Robertson stated, the focus on modern construction methods is pivotal in achieving housing that is both affordable and readily available.

This concerted effort underscores the Canadian government’s commitment to equipping its regions with the tools needed to navigate an evolving economic landscape. As businesses in B.C.’s Southern Interior leverage these investments, they are well-positioned to adapt and thrive amidst the challenges posed by tariffs and global market fluctuations. The collaboration of industry leaders, supported by a proactive governmental approach, heralds a new chapter of resilience and ingenuity for the region’s economy.