OTTAWA, Ont. — The federal government has formally announced Canada’s countermeasures against the latest U.S. tariffs, as well as a comprehensive support package valued at $7.5 billion.
According to the government, Canada will match the new U.S. tariffs dollar for dollar, rate for rate, with additional Canadian tariffs on U.S. goods. Effective Sept. 8, according to its news release, 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.
The federal government says the counter-tariffs will apply to products covering $27.6 billion in imports from the U.S. and focus on sectors including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics — those hardest hit by the latest U.S. tariffs.
The government also announced a $7.5-billion package of new and enhanced measures that it says will “deliver fast, simple and agile supports to Canadian workers and businesses” and build on nearly $25 billion in supports introduced since the U.S. brought in tariffs.
According to its news release, the federal government says this package will include:
- An additional $1.5-billion investment through the Regional Tariff Response Initiative, delivered by Canada’s regional development agencies to help small and medium-sized enterprises, including liquidity supports to manage 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.
- Lowering the minimum revenue requirement for applicants to the Business Development Bank of Canada’s tariff-related programs 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.
- A new $3.5-billion suite of Rapid Response Supports for Workers and Employers to 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. The measures also aim to help employers retain their workforce through the new Worker Retention and Retraining Program.
- New flexibilities to the Large Enterprise Tariff Loan facility, administered by the Canada Enterprise Emergency Funding Corporation.
The announcement was made Tuesday by federal ministers, including François-Philippe Champagne, minister of Finance and National Revenue; Mélanie Joly, minister of Industry; Evan Solomon, minister of Artificial Intelligence and Digital Innovation and minister responsible for the Federal Economic Development Agency for Southern Ontario; and Patty Hajdu, minister of Jobs and Families and minister responsible for the Federal Economic Development Agency for Northern Ontario.
“When the United States asked too much and offered too little, we chose to stand up for Canadians,” Champagne said in a statement. “Our dollar-for-dollar, rate for rate counter-tariffs as well as a multibillion-dollar support package will protect workers, farmers, families, and businesses as we build a stronger, more resilient, and more diversified Canadian economy.”
The measures have gotten a thumbs up from the country's unions. The Canadian Labour Congress voiced support for extending Employment Insurance measures for workers affected by U.S. tariffs while also calling on the Feds to do more.
“Canada was right to walk away from a bad deal. We continue to stand with the government in refusing to sacrifice Canadian jobs and industries just to get Donald Trump to sign a deal he could tear up tomorrow,” said Bea Bruske, President of the Canadian Labour Congress, in a statement. “Today’s measures will help workers and keep people on the job. But as the trade war escalates, support for workers needs to keep pace.”
Response from Premier Moe
In a statement released soon after the announcement, Premier Scott Moe voiced his support for the federal measures.
“The federal government has taken a focused and targeted approach in its counter tariffs on US imports announced today. Saskatchewan supports this approach.
“The new counter-tariffs cover about $1.5 billion, or 11.3 per cent, of SK’s annual imports from the US.
“We are analyzing the counter-tariff list closely and working with affected industries to determine its potential impact on jobs and consumer prices, while also reviewing the federal government’s support measures to ensure they work for Saskatchewan businesses and workers.
“While this is the appropriate response to the latest round of US tariffs, we can never lose sight of the fact that all tariffs hurt businesses, jobs, consumers and families on both sides of the border, and our ultimate goal must be to get back to a free and fair trade relationship with the US, as we have enjoyed for many years.”
More Trump activity on social media
The announcement of a new package of countermeasures and tariff relief measures comes as President Donald Trump stepped up his rhetoric toward Canada on social media Tuesday.
On the Truth Social platform, Trump took particular aim at Ontario. He posted that the “United States is giving serious consideration to changing the name of Lake Ontario to Lake America in that we don’t expect to do much business with Ontario any longer. Thank you for your attention to this matter!”
Trump also countered reports that a deal was scuttled by U.S. negotiators over the French-language packaging issue. Trump posted: “I would never interfere with Canadians speaking French! In fact, I have never even thought of doing such a stupid thing. This lie was made up by a weak and ineffective Prime Minister in an attempt to gain political support, which he has totally lost, from the people of Quebec. I love French Canadians!”
