Nine Hamilton Businesses Receive $12.5 Million to Address Tariff Pressures

Nine businesses in the Hamilton area will receive more than $12.5 million in federal funding to manage tariff-related pressures, reinforce domestic supply chains and protect Canadian jobs.

The investment, delivered through the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), targets companies operating in industries central to Hamilton’s economy, including advanced manufacturing, automation, steel production, packaging and specialized industrial equipment.

Federal Funding Supports Hamilton’s Manufacturing Sector

Hamilton and the surrounding region remain an important hub for Ontario’s manufacturing economy. Local industries support thousands of workers, attract investment and contribute to supply chains serving customers across Canada and international markets.

The federal government said the funding will help the nine businesses improve productivity, adopt new technologies and pursue growth opportunities amid continuing trade uncertainty.

Niko Apparel Systems Modernizes Production

Among the recipients is Niko Apparel Systems, a Canadian-owned manufacturer specializing in technical apparel and protective equipment. The company is undertaking a $400,000 project at its Hamilton facility.

“Anybody who exports knows it’s been very difficult. It’s getting worse I would say,” says Joe Camillo, the founder of Niko Apparel.

Approximately 20 per cent of the sports equipment and jerseys manufactured at the company’s Hempstead Drive facility are exported to the United States. Niko Apparel is now seeking to expand sales in Canada and Europe to reduce its exposure to the U.S. market.

The company also sells hockey neck guards south of the border, although those products are not manufactured at its Hamilton location.

“For example, our neck guards, which we sell a lot of down there, and we sell to the largest hockey retailer in the US, we have to absorb all tariffs and duties and all brokerage fees, and we’re losing a lot of money there,” says Camillo.

FedDev Ontario is contributing $200,000 toward the project. The funding will support equipment upgrades, production infrastructure improvements and workforce training, allowing the business to increase its capacity to deliver made-in-Canada performance apparel and protective gear.

Regional Tariff Response Initiative Expanded

The investment is being made through the Regional Tariff Response Initiative, or RTRI, which is administered by Canada’s regional development agencies.

“Through the Regional Tariff Response Initiative (RTRI), we are taking action to help businesses confront tariff-related pressures, secure their place in critical supply chains, protect jobs and unlock new opportunities for growth and investment,” said Evan Solomon, minister of AI and digital innovation.

“Today’s investment for these nine companies in the Hamilton area will support growth and innovation, helping ensure the region remains a key centre for manufacturing and economic activity while contributing to a stronger Canadian economy.”

The Government of Canada recently announced a $7.5-billion package of new and enhanced measures intended to provide faster and more flexible assistance to Canadian workers and businesses. The measures build on nearly $25 billion in support introduced since the implementation of U.S. tariffs.

Effective in September, Ottawa is investing an additional $1.5 billion in the RTRI to help businesses respond to tariff pressures.

Higher Contribution and Liquidity Limits

Under the expanded program, the maximum non-repayable contribution will rise from $1 million to $3 million. Assistance will also cover demonstrated liquidity needs, alongside existing support for business pivots and capital investment plans.

Eligible businesses will be able to access up to $2 million in liquidity support.

The expanded funding is intended to help Canadian companies absorb short-term trade-related costs while investing in equipment, workforce development and new markets.

Funding Expected to Protect Hamilton Jobs

Hamilton Centre MP Aslam Rana said the investment recognizes the importance of local employers and skilled workers to the regional economy.

“Hamilton’s success is built on the strength of its businesses and workers. Today’s investment in these nine businesses will strengthen our local economy, protect jobs, and seize new opportunities, creating lasting economic benefits for our community,” said Rana.

The federal funding is expected to help Hamilton manufacturers manage immediate tariff costs while building more resilient operations. For companies such as Niko Apparel, the support could also make it easier to diversify export markets and strengthen domestic production over the longer term.