Canada to impose new tariffs on $27.6 billion in U.S. imports starting Sept. 8

Canada will impose new counter-tariffs on $27.6 billion worth of U.S. imports beginning Sept. 8, matching new American tariffs imposed on Canadian goods while announcing billions of dollars in additional support for workers and businesses affected by the trade dispute.

Finance Minister François-Philippe Champagne announced the measures Tuesday after the United States imposed a 50 per cent tariff on $27.6 billion in Canadian goods effective Aug. 22.

The federal government said Canada would respond with tariffs of 15, 25 and 50 per cent on selected U.S. products, with the Canadian rate matching the corresponding U.S. tariff. The new measures will target products affected by U.S. Section 338 and Section 232 tariffs.

The new tariffs will take effect at 12:01 a.m. Sept. 8 and will apply only to goods originating in the United States. U.S. goods already in transit to Canada when the measures take effect will not be subject to the new counter-tariffs.

The federal government said the measures would focus on sectors most affected by U.S. tariffs, including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.

Among the products facing 50 per cent Canadian counter-tariffs are certain steel and aluminum products, furniture, and clothing and apparel. Appliances, dairy products such as cheese, fish and seafood, and certain steel and aluminum derivative products will face 25 per cent tariffs.

The published tariff list also includes a wide range of seafood products, including fresh and frozen fish such as Atlantic salmon, cod, haddock, mackerel and other species.

The government said the counter-tariffs were intended to provide Canadian producers and manufacturers with a more competitive position against U.S. products in the Canadian market.

Alongside the tariffs, Ottawa announced a $7.5-billion package of new and enhanced measures for workers and businesses, building on nearly $25 billion in supports previously provided in response to U.S. tariffs.

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The package includes an additional $1.5 billion for the Regional Tariff Response Initiative, which provides support to small and medium-sized businesses, including help with liquidity pressures.

The Business Development Bank of Canada will receive a new $500-million liquidity stream through its Pivot to Grow program. Eligible companies will be able to access loans ranging from $250,000 to $5 million, while the minimum annual revenue requirement for direct tariff-related BDC programs will be lowered to $1 million.

Ottawa is also creating the $2-billion Canada Strong Diversification Fund to help tariff-affected businesses undertake projects aimed at maintaining capital and strengthening their operations.

A further $3.5 billion will be directed toward Rapid Response Supports for Workers and Employers.

The measures include extending temporary Employment Insurance provisions, including the waiver of the one-week waiting period and provisions allowing workers to receive EI without first using separation payments. The government will also extend by eight months a temporary measure providing an additional 20 weeks of EI regular benefits for long-tenured workers.

A new Worker Retention and Retraining Program will combine existing work-sharing measures and the Worker Retention Grant, while providing employers with additional funding for training and administrative costs.

Ottawa is also increasing flexibility under its $10-billion Large Enterprise Tariff Loan facility. The facility will be able to address up to 36 months of company liquidity needs, up from 24 months, while the maximum loan term will increase from 10 years to 15 years.

The federal government said the measures followed the suspension of trade negotiations with the United States after Ottawa determined that proposed U.S. terms were not in Canada's interests.

"Canada did not choose this trade conflict," the government said, adding that the countermeasures were intended to provide a level playing field for Canadian businesses.

Existing Canadian counter-tariffs, including those on automobiles, will remain in place.

The government said it would continue assessing programs and policies to support businesses affected by the tariffs, including potentially expanding existing measures to additional sectors.