What You Need to Know
The Government of Canada has negotiated intensively and in good faith with the United States toward a fair and comprehensive trade agreement that would protect Canadian workers and families, strengthen the economy, provide greater certainty for businesses, and respect Canada’s sovereignty.
Last week, however, the U.S. proposed new terms that were unfair, uneconomic, and not in Canada’s best interest. In short, they asked too much and offered too little. Rather than accepting a bad deal that would undermine Canadian workers, businesses, strategic sectors, and our national interest, Canada suspended negotiations.
Today, Ministers Champagne, Joly, Solomon, and Hajdu announced new measures to protect and support Canadian workers and businesses during this period of uncertainty.
In response to the United States’ decision to impose a 50% tariff on $27.6 billion of Canadian goods, Canada will match the new U.S. tariffs dollar for dollar, rate for rate, with additional Canadian tariffs on U.S. goods.
Effective September 8, Canada will impose counter-tariffs of 15%, 25%, and 50% on products drawn from those targeted by U.S. Section 338 and Section 232 tariffs, with the rate for each product matching the corresponding U.S. rate.
Canada’s counter-tariffs will apply to products covering $27.6 billion in imports from the U.S., focusing on sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, that are most impacted by American tariffs, helping protect Canadian businesses by keeping domestic product competitive and supporting Canadian jobs.
To support Canadian workers and businesses the government is also introducing a $7.5 billion package of new and enhanced measures that deliver fast, simple, and agile supports.
This package builds on the nearly $25 billion in supports the government has already provided since the implementation of unjustified U.S. tariffs.
The new support package includes additional funding through the Regional Tariff Response Initiative, new liquidity supports for businesses, a new Canada Strong Diversification Fund, rapid response supports for workers and employers, and new flexibilities for large enterprises impacted by tariffs.
Canada did not choose this trade conflict, but we will respond to protect Canadian workers, families, and businesses, defend our industries, and build a stronger, more resilient, and more diversified Canadian economy.
