Counter-tariffs
Following the U.S. decision to impose a 50 per cent tariff on $27.6 billion of Canadian goods effective August 22, Minister Champagne confirmed today that Canada will match the new U.S. tariffs dollar for dollar, rate for rate, with additional Canadian tariffs on U.S. goods. This focused response will protect Canadian workers, farmers, fishers, families, and businesses, defend industries harmed by unjustified U.S. tariffs, and help Canadian producers compete with U.S. products in the Canadian market.
Effective September 8, Canada will impose counter-tariffs of 15, 25 and 50 per cent on products drawn from those targeted by U.S. Section 338 and Section 232 tariffs, with the rate for each product matching the corresponding U.S. rate.
Canada’s counter tariffs will apply to products covering $27.6 billion in imports from the U.S. and will focus on sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, that are most impacted by U.S. tariffs.
Support for impacted workers and businesses (click here for more details)
In addition, to support Canadian workers and businesses impacted by U.S. tariffs, the government is also introducing 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.
This package includes:
- an additional $1.5 billion investment through the Regional Tariff Response Initiative, delivered by Canada’s regional development agencies (ie: FedNor), to help small and medium-sized enterprises, including liquidity supports to manage the pressures related to tariffs.
- a new $500 million liquidity stream under the Business Development Bank of Canada’s Pivot to Grow program to help businesses manage immediate cash-flow pressures in addition to targeted programs for the forestry, steel and aluminum sectors.
- broadened access to the Business Development Bank of Canada’s tariff related programs by lowering the minimum revenue requirement for applicants to $1 million.
- an additional $2 billion investment through the new Canada Strong Diversification Fund, to support tariff-affected businesses with shovel-ready projects that support ongoing capital maintenance. This new initiative will work closely with RDA programming for project intake and triage.
- a new suite of $3.5 billion Rapid Response Supports for Workers and Employers to help Canadians affected by tariffs. This will help workers access income support when they need it through extended and additional EI temporary flexibilities; and support their transition into new opportunities through new investments in training delivered in the workplace and enhancements to JobBank.gc.ca. This will also help employers keep their workforce through a difficult period with the help of the new Worker Retention and Retraining Program (WRRP).
- new flexibilities to the Large Enterprise Tariff Loan facility, administered by the Canada Enterprise Emergency Funding Corporation (CEEFC).