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Canada Matches New US Tariffs, Unveils C$7.5 Billion Support Package for Businesses, Workers

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Canada said Tuesday it will match the latest US tariffs dollar-for-dollar and unveiled a C$7.5 billion package to support businesses and workers affected by the escalating trade dispute with its biggest trading partner.

The counter tariffs, effective Sept. 8, will range from 15% to 50% and cover C$27.6 billion of US imports, targeting sectors including steel, dairy, appliances, farm equipment, pulp and paper, and electronics, said Finance Minister Francois-Philippe Champagne at a press conference in Ottawa.

The targeted sectors mirror those hit by new US tariffs that took effect Saturday after trade talks between the two countries broke down.

The trade war with the US "is an unprecedented challenge imposed on Canada", Champagne said at the press conference, alongside Industry Minister Melanie Joly, Minister of Jobs and Families Patty Hajdu and Minister of Artificial Intelligence and Digital Innovation Evan Solomon.

Canada "must respond and we are" doing so with Tuesday's counter-tariffs, added Champagne.

The Canadian government also introduced a C$7.5 billion support package for companies and workers impacted by the US tariffs, through funds from regional development agencies, liquidity support via the Business Development Bank of Canada and the Canada Strong Diversification Fund.

Canada is in "a position of strength" to introduce the support measures, given its fiscal capacity to do so, added Minister Champagne at the event.

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