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

Canada has suspended trade negotiations with the United States after the U.S. proposed terms the federal government says were not in Canada’s best interest. According to the release, the U.S. imposed a 50 per cent tariff on $27.6 billion in Canadian goods on August 22. Canada will match those tariffs “dollar for dollar, rate for rate” beginning September 8, applying 15, 25 and 50 per cent counter‑tariffs on affected products.

The measures target sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. The government says the objective is to protect Canadian workers and producers harmed by U.S. tariffs and improve their competitive position in the domestic market.

“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 finance minister François‑Philippe Champagne.

A $7.5 billion support package will also be introduced, adding to nearly $25 billion in previous tariff‑related supports. The new funding includes liquidity programs for small and medium‑sized businesses, expanded access to Business Development Bank of Canada programs, a $2 billion Canada Strong Diversification Fund for capital projects, and $3.5 billion in Rapid Response Supports for workers and employers.

Canada‑U.S. trade minister Dominic LeBlanc said Canadians expect their government to defend their interests, and with the United States imposing unjustified tariffs, Canada says it is concentrating on strengthening the economy at home and protecting its economic position.

“Today’s countermeasures will ensure workers, farmers, families, and businesses affected are supported throughout this period of uncertainty,” he said.

Industry minister Mélanie Joly said Canada will keep investing in its core strengths, including workers, businesses and the country’s ability to compete, even as global conditions become more uncertain.

“Today’s new measures will protect jobs, strengthen the industries that drive our economy, and secure the supply chains that underpin our prosperity. Canada will not simply respond to change, we will shape it, growing a stronger economy that delivers opportunity, security, and prosperity for Canadians,” she said.