Windsor-Essex manufacturers say federal tariff relief loans fall short

Windsor-Essex is questioning a tariff loan program from the federal government, wondering if it’s the help that’s needed right now. Chris Campbell has more.

Manufacturers and local leaders in Windsor-Essex say a newly announced federal loan program aimed at helping steel and aluminum businesses hit by U.S. tariffs is a step forward — but not the solution they were hoping for.

The federal government announced up to $1 billion in loans Monday to support companies impacted by tariffs tied to policies under Donald Trump, offering interest-only payments for three years before repayment begins.

But industry voices in a region heavily reliant on tool and mould manufacturing say taking on more debt may only delay financial strain.

“There’s two angles to what I saw today,” said Jonathon Azzopardi, president of Laval International and past chair of the Canadian Association of Mould Makers.

“Today was exciting because the government typically doesn’t react this quickly… but we’re not that excited about loans.”

Azzopardi said while the program could provide some short-term stability, it ultimately “does fall short.”

“These loans will be used to try and keep these companies open while they try and navigate through what’s going on,” he said.

“So, it’s not bad news, but I’m not going to say that it gets it over the finish line either.”

He described the current situation as a “wait and see” moment for many in the industry, with companies already feeling the effects of tariffs.

“Some companies are feeling that orders have basically dropped off… that should be very concerning,” Azzopardi said, adding firms are weighing whether to cut costs, delay investment or absorb losses.

The federal announcement follows a weekend event in Windsor-Essex where local industry leaders and Conservative MPs called for urgent action from Ottawa, warning the sector could only sustain operations for a limited time without relief.

Chris Lewis, MP for Essex who attended that event, said Monday the loan program does little to address the underlying issue.

“At the end of the day, this is a loan… a very short-term potential band-aid,” Lewis said.

“At its very best, it doesn’t solve anything long term.”

Lewis said manufacturers have been asking for direct relief, such as tariff coverage, rather than financing that must eventually be repaid.

“All they need is certainty,” he said.

“And they haven’t been asking for loans.”

Windsor Mayor Drew Dilkens echoed those concerns, questioning whether the program would improve competitiveness for local companies.

“If a project is uncompetitive today, having a company take on a loan… doesn’t make the project any more competitive,” Dilkens said.

“All it does is push the pressure on to them three years from now.”

Dilkens said the program could be more effective if loans are ultimately forgivable, acting as a bridge while trade negotiations continue.

“If it’s truly a repayable loan… it does very little to help support the local industry,” he said, adding companies could face deeper financial challenges down the road.

Both industry and political leaders say the focus must remain on resolving the trade dispute and restoring stability.

“We need to get back to the table,” Azzopardi told CTV News, while encouraging Prime Minister Mark Carney to visit the region.

“Let’s work together… Let’s brainstorm how we can support an industry through this.”