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

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(Updates with details in 6th and 9th paragraphs, adds Champagne comment in 7th paragraph.)

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 government didn't introduce any measures impacting the energy sector, a key export industry for the US market.

Minister Champagne didn't address a reporter's question regarding whether it was a future possibility to hit the energy sector, saying Tuesday's measures were "strategic" and aimed at sectors hit by US tariffs to level the playing field for Canadian companies.

The Canadian government's C$7.5-billion support package for companies and workers impacted by the US tariffs will come from funds from regional development agencies, liquidity support via the Business Development Bank of Canada and the Canada Strong Diversification Fund.

The measures also included more generous benefits to employment insurance.

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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