Canada invests C$645,000 in Fonderie Lemoltech to counter US aluminium tariffs
What's the deal? The Canadian government is investing C$848,563 in non-repayable contributions to two small manufacturers in Quebec's Centre-du-Québec region hit by US tariffs on aluminium. The funding, announced by Carlos Leitão, parliamentary secretary to the minister of industry, goes to Fonderie LemoltechDealroom has a profile for this one. Try Dealroom → (C$645,000) and Protomach GML (C$203,563) under Canada's Regional Tariff Response Initiative (RTRI).
Fonderie Lemoltech, an aluminium die-casting firm in Princeville, will use the money to acquire equipment, boost production capacity, and diversify its markets. Protomach GML, which manufactures machinery and industrial equipment in Saint-Louis-de-Blandford, will invest in new technology to improve productivity.
The projects are expected to consolidate over 90 jobs in the region.
Why now? The funding responds directly to US tariff adjustments that took effect on April 6, 2026, targeting Canadian products containing steel, aluminium, and copper. On May 4, 2026, industry minister Mélanie Joly announced C$1.5 billion in new countermeasures — including an additional C$500 million through the RTRI and a C$1 billion financing programme via the Business Development Bank of Canada to help small and medium-sized enterprises (SMEs) manage urgent liquidity needs.
Quebec is home to over 1,700 aluminium processing businesses and 30,000 jobs in the sector, making it a critical part of the province's manufacturing ecosystem.
What could go wrong? Non-repayable grants help in the short term, but if US tariff pressures persist or escalate, small manufacturers may struggle to find enough new markets to offset lost American demand. Diversification strategies take time — and trade uncertainty can make long-term capital investment risky for firms with limited resources.
The signal: With Fonderie Lemoltech classified as a "breakout" stage company on Dealroom, this grant targets exactly the kind of growing SME most vulnerable to sudden trade shocks — firms large enough to depend on cross-border demand but too small to absorb tariff costs. Ottawa's pairing of non-repayable CED grants with the Business Development Bank of Canada's new C$1 billion liquidity programme suggests the federal government is building a layered defence for its aluminium supply chain, combining immediate relief with longer-term modernisation bets.
Read more: eawaz.com
