Canada announced retaliatory tariffs on USD 20 billion of annual US imports effective 8 September 2026, with rates ranging from 15% to 50% across roughly 700 US products. The federal government committed USD 7.5 billion to assist affected workers and businesses.
Following the US imposition of a 50% tariff on USD 27.6 billion of Canadian goods effective 22 August, Canada has announced retaliatory tariffs on around USD 20 billion worth of annual US imports on 25 August 2025 alongside support measures for affected businesses and workers, matching Washington’s latest duties dollar-for-dollar, effective 8 September 2026.
Canada will impose counter-tariffs of 15%, 25% and 50% on roughly 700 US products from 8 September, targeting goods subject to US Section 338 and Section 232 tariffs. The retaliatory measures cover 27.6 billion in imports from the US, focusing on sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.
The Department of Finance also released backgrounders outlining the products from the US that will be subject to counter-tariffs, as well as the support measures available to Canadian workers and businesses affected by US tariffs.
Support package for affected sectors
Canada’s federal government announced a USD 7.5 billion support package designed to assist workers and businesses experiencing tariff-related disruption. This new funding builds on approximately USD 25 billion in assistance measures previously deployed since US tariffs began taking effect.
Business liquidity and capital support
The government committed CAD 1.5 billion through its Regional Tariff Response Initiative, channelled via regional development agencies to reach small and medium-sized enterprises. The funding aims to address immediate cash constraints caused by tariff impacts.
The Business Development Bank of Canada introduced a CAD 500 million liquidity stream through its Pivot to Grow programme, targeting businesses experiencing short-term cash-flow disruptions.
To broaden access, the government lowered the minimum revenue threshold for applicants to CAD 1 million, expanding eligibility beyond previously qualified firms. Additional flexibilities were added to the Large Enterprise Tariff Loan facility, administered through the Canada Enterprise Emergency Funding Corporation.
A new USD 2 billion Canada Strong Diversification Fund targets shovel-ready capital projects, prioritising maintenance and infrastructure that supports long-term operational resilience. Regional development agencies will handle project intake and coordination with this initiative.
Worker transition and retention
The government allocated USD 3.5 billion toward rapid response support for both workers and employers. This includes expanded Employment Insurance flexibilities to provide income support for affected workers, alongside new workplace-based training programs and upgrades to JobBank.gc.ca to facilitate workforce transitions. A new Worker Retention and Retraining Programme enables employers to retain staff during this period by offsetting the costs of maintaining employment and upskilling initiatives.
The latest escalation follows Canada’s suspension of US trade negotiations on 21 August 2026 after rejecting last-minute US trade terms as unfair. The US subsequently imposed 50% tariffs on around USD 20 billion of Canadian goods, prompting Canada to announce retaliatory measures. The Trump administration has further escalated the dispute by planning 50% tariffs on Canadian vehicles, trucks and automotive parts from 1 January 2027.
