Kelowna 
Canada is responding to the latest round of U.S. tariffs with its own countermeasures, while setting aside billions of dollars for workers and businesses caught in the middle.
The federal government says negotiations with the United States were suspended after Washington proposed terms Canada considered unacceptable. Finance Minister François-Philippe Champagne, along with ministers Mélanie Joly, Evan Solomon and Patty Hajdu, announced the response as businesses prepare for another period of trade uncertainty.
The central message is straightforward: Canada plans to match the latest U.S. tariffs while expanding financial help at home.
Canada’s new tariffs
- Matching the U.S. dollar for dollar: After the United States imposed a 50 per cent tariff on $27.6 billion of Canadian goods effective August 22, Canada announced it would match the U.S. Section 338 tariffs dollar for dollar, targeting an equivalent value of American imports.
- New tariffs start September 8: Beginning at 12:01 a.m. on September 8, 2026, Canada will impose counter-tariffs of 15, 25 and 50 per cent on selected products drawn from those targeted under U.S. Section 338 and Section 232 measures. Each product’s Canadian rate will match the corresponding U.S. tariff rate.
- $27.6 billion in U.S. imports affected: Canada’s new countermeasures will cover $27.6 billion worth of imports from the United States, concentrating on sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.
- Goods facing 50 per cent tariffs: Products moving to the highest rate include steel and aluminum goods previously subject to a 25 per cent counter-tariff, along with furniture, clothing and apparel. These products will face a 50 per cent Canadian tariff once the new measures take effect.
- Goods facing 25 per cent tariffs: The 25 per cent category includes appliances, dairy products such as cheese, fish and seafood, along with certain steel and aluminum derivative products. Other listed goods will face either 15 or 50 per cent rates depending on the matching U.S. tariff.
- Only U.S.-origin goods are covered: The new tariffs apply only to goods originating in the United States. For this purpose, eligible goods are determined according to Canada’s country-of-origin marking rules for CUSMA countries.
- Goods already travelling to Canada are exempt: U.S. goods that are already in transit to Canada when the countermeasures come into force will not be subject to the new tariffs. Additional administrative details will be provided by the Canada Border Services Agency.
- Existing counter-tariffs continue: Canada’s other countermeasures against U.S. goods, including tariffs affecting automobiles, remain in place. The federal tariff remission framework also continues, allowing requests for exceptional relief to be assessed separately.
The government says it suspended negotiations rather than accept terms that would harm Canadian workers, businesses and strategic sectors.
New support for workers and businesses
Canada is also introducing a $7.5 billion package, on top of nearly $25 billion in support already provided since U.S. tariffs were introduced.
- Regional Tariff Response Initiative: An additional $1.5 billion will flow through Canada’s regional development agencies. If you run a small or medium-sized business facing tariff-related pressure, the program is intended to provide assistance, including liquidity support to help manage immediate financial strain.
- BDC liquidity support: The Business Development Bank of Canada will receive a new $500 million liquidity stream through its Pivot to Grow program. The money is aimed at helping businesses handle short-term cash-flow pressures, alongside targeted programs already directed toward the forestry, steel and aluminum sectors.
- More businesses can qualify: Access to BDC tariff-related programs will be broadened by lowering the minimum annual revenue requirement to $1 million. That change means smaller businesses that previously fell below the threshold may now be able to apply for support.
- Canada Strong Diversification Fund: Ottawa is adding $2 billion through this new fund for tariff-affected businesses with shovel-ready projects. The focus is on ongoing capital maintenance, with regional development agencies helping handle applications and determine how projects move through the program.
- Worker and employer assistance: A further $3.5 billion will fund Rapid Response Supports for Workers and Employers. Measures include temporary Employment Insurance flexibilities, workplace training, improvements to JobBank.gc.ca, and the new Worker Retention and Retraining Program to help employers keep staff during difficult periods.
- Large enterprise loans: The government is also introducing new flexibilities to the Large Enterprise Tariff Loan facility, administered by the Canada Enterprise Emergency Funding Corporation. Ottawa says it will continue reviewing existing programs and may extend support as newly affected industries emerge.
The government says the measures are meant to provide a “level playing field” for Canadian businesses while negotiations remain suspended.
List of products from the United States subject to counter-tariffs effective September 8, 2026
