Canada announces counter‑tariffs and $7.5 billion support package in response to U.S. measures

Canada has suspended trade negotiations with the United States after the U.S. proposed terms officials said were not in Canada’s best interest, according to the report. The Department of Finance said the U.S. move to impose a 50 per cent tariff on $27.6 billion in Canadian goods prompted a matching response and a new round of supports for affected industries.

Canada will impose 15, 25 and 50 per cent counter‑tariffs starting September 8 on a range of U.S. products, with rates aligned to those applied under U.S. Section 338 and Section 232. The measures target sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. Goods such as steel and aluminum products, furniture, clothing and apparel will now face 50 per cent tariffs.

A $7.5 billion support package will provide liquidity, training, and project funding for businesses and workers affected by the tariffs. This includes $1.5 billion through the Regional Tariff Response Initiative, a new $500 million liquidity stream under the Business Development Bank of Canada’s Pivot to Grow program, broadened access to BDC tariff programs, $2 billion through the new Canada Strong Diversification Fund, and $3.5 billion in rapid supports for workers and employers. According to the report, the government will also expand flexibilities under the Large Enterprise Tariff Loan facility.

Minister François‑Philippe Champagne said Canada’s decision to suspend negotiations and impose counter‑tariffs was driven by the need to protect Canadian workers and industries.

“When the United States asked too much and offered too little, we chose to stand up for Canadians. Our dollar‑for‑dollar, rate for rate counter‑tariffs as well as a multi‑billion dollar support package will protect workers, farmers, families, and businesses as we build a stronger, more resilient, and more diversified Canadian economy,” said Champagne.

Industry Minister Mélanie Joly said the measures are intended to stabilize key sectors and strengthen Canada’s competitive position.

“In a more uncertain world, Canada will continue to invest in our greatest strengths: our workers, our businesses, and our capacity to compete. Today’s new measures will protect jobs, strengthen the industries that drive our economy, and secure the supply chains that underpin our prosperity,” said Joly.

Minister Patty Hajdu said Canada will continue to defend its economic interests.

“Canada has what the world wants, and we will not allow any nation to determine our future. We will always stand up for Canadian workers and businesses,” said Hajdu.

Minister Dominic LeBlanc said the government’s focus is on protecting Canadians during a period of volatility.

“As the United States impose unjustified tariffs, Canada’s government is focused on building our strength at home and protecting our economy. Today’s countermeasures will ensure workers, farmers, families, and businesses affected are supported throughout this period of uncertainty,” said LeBlanc.