Canada invests $6.9M to help Prince Edward Island businesses respond to tariffs

Building Canadian strength at home and helping businesses compete around the world

October 1, 2026 · Central Bedeque, Prince Edward Island · Atlantic Canada Opportunities Agency (ACOA)

As global trade pressures persist, Canada’s new government is protecting Canadian workers and businesses, defending industries harmed by unjustified U.S. tariffs, and helping Canadian producers compete with U.S. products in the Canadian market.

Today, the Honourable Sean Fraser, Minister of Justice and Attorney General of Canada and

Minister responsible for the Atlantic Canada Opportunities Agency (ACOA), announced more than $6.9 million in federal investments to support 17 businesses and organizations across Prince Edward Island. These projects are part of investments being announced nationwide as Canada implements enhanced measures to deliver fast, simple and agile support to workers and businesses affected by U.S. tariffs.

Minister Fraser made the announcement at PEI Bag Co. in Central Bedeque, alongside Bobby Morrissey, Member of Parliament for Egmont. The company employs 65 Islanders and manufactures bags used to package everyday products like potatoes, flour, and sugar. It received more than $260,000 for new manufacturing equipment and digital technologies to help it make bags more efficiently and reach new customers. This investment will help support local jobs and keep more of the packaging that Canadian food producers depend on made here at home.

Today’s announcement includes investments for 16 additional businesses across Prince Edward Island. Delivered through the Regional Tariff Response Initiative (RTRI), these investments will help businesses address tariff-related pressures and pursue long-term growth opportunities by strengthening productivity, supply chains and market reach. For a full list of projects, please see the backgrounder.

Canada’s new government recently announced an additional $1.5 billion for the RTRI as part of a broader $7.5 billion package of new and enhanced measures for Canadian workers and businesses affected by the unjustified U.S. tariffs. This additional investment will allow more businesses across Atlantic Canada to quickly access the help they need to adapt, invest, and pursue new opportunities at home and abroad.

Need help responding to tariffs? Businesses in Atlantic Canada can access the RTRI through the Atlantic Canada Opportunities Agency (ACOA). The Agency will also work with businesses to understand their circumstances and connect them with other federal supports, ensuring there is no wrong door for businesses needing help.

Quotes

“We’re helping businesses here in Prince Edward Island adapt to unjustified U.S. tariffs. For PEI Bag Co., that means new equipment to produce bags for everyday products like potatoes, flour, and sugar more efficiently, compete for customers here at home, and reach new global markets. This investment will help support jobs for 65 Islanders and keep Canadian food packaging production in Canada. The $6.9 million in direct support we’re announcing today will help PEI Bag Co. and 16 other businesses and organizations across the Island, with more to come across Atlantic Canada. Our government will continue to act quickly so workers and businesses affected by these tariffs get the support they need.”
- The Honourable Sean Fraser, P.C., K.C., Member of Parliament for Central Nova, Minister of Justice and Attorney General of Canada and Minister responsible for the Atlantic Canada Opportunities Agency

“As global markets continue to evolve, Prince Edward Island businesses need the right mix of innovation and capacity to stay competitive and pursue new opportunities. Of the $6.9 million our federal government is investing across PEI, more than $260,000 is staying right here at PEI Bag Co. to keep operations and tools modern, boost efficiencies, and seek new market opportunities. This is the kind of immediate and intentional support Canada’s new government is delivering to help local businesses adapt to tariffs, grow and succeed in a changing global economy.”
- Bobby Morrissey, Member of Parliament for Egmont

“Support through the Regional Tariff Response Initiative will help us build on the significant growth and modernization efforts we have made in recent years. By investing in new equipment and digital technologies, the PEI Bag Co. can operate more efficiently, explore new market opportunities, and strengthen our ability to adapt to changing trade conditions while continuing to provide high-quality products to our customers.”
- Thane Smallwood, General Manager, PEI Bag Co.

Quick facts

• Through the Regional Tariff Response Initiative (RTRI), the Government of Canada is providing a total of $3.45 billion to help businesses boost productivity, lower costs, strengthen supply chain resilience, and open doors to new markets, enhancing overall competitiveness across all sectors, including steel, aluminum, copper, automotive, food security, and forestry.

• On August 25, 2026, the Government of Canada introduced a $7.5 billion package of new and enhanced measures that deliver fast, simple and agile supports to Canadian workers and businesses, building on the nearly $25 billion in supports the government has provided since the implementation of the U.S. unjustified tariffs.