What to know
- Starting Sept. 8, Canada will charge “dollar-for-dollar” counter-tariffs on more than $27 billion of American goods.
- The list of taxed items include dairy, household appliances, dairy, and toilet paper.
- The federal government also announced $7.5 billion of support for Canadian businesses through several agencies.
- This new round of counter-tariffs come after trade negotiations with the U.S. fell through over the weekend.
Canada will be implementing “dollar-for-dollar” and “rate-for-rate” counter-tariffs on over $27 billion of American imports, including dairy, electronics and appliances.
On Tuesday, Finance Minister François-Philippe Champagne and Industry Minister Mélanie Joly announced 25 and 50 per cent tariffs that will go into effect at 12:01 a.m. on Sept. 8 in an effort to “provide protection for Canadian industries affected by American tariffs.”
More than 700 American imported goods will be impacted by the reciprocal tariffs, inclusive of items shopped for often at stores, such as seafood, cheese, beauty products, toilet paper, kitchenware, and household appliances.
To encourage “a movement of resistance,” Minister Joly is encouraging Canadians to shop Canadian and pushing grocery stores to understand and clearly label Canadian products.
“Push grocers to understand what are Canadian products. When you choose a Canadian product, you’re not just putting pressure on the U.S., you’re protecting jobs. That’s how we can launch this movement of resistance.”
“Our greatest power is our purchasing power,” Champagne said in the announcement.
This new round of counter-tariffs comes after trade negotiations with the U.S. fell through over the weekend. According to the federal government, negotiators for President Trump tried to push through a deal that threatened Canada’s sovereignty and was “unfair, uneconomic, and called into question the reliability of any deal.”
On Saturday morning, Trump instated 50 per cent tariffs on approximately $28 billion of Canadian goods, impacting products such as hockey sticks, wine, dairy, alcohol, flowers, and animal byproducts.
Support for Canadian businesses
To provide protection for Canadian industries affected by American tariffs, the government is unveiling a $7.5 billion support package for workers and business through several agencies.
Small businesses will have access to $3 million of non-repayable loans — or grants — that will be available through regional development agencies.
The Bank for Canadian Entrepreneurs (BDC) will offer a second form of financial relief through $500 million dollars of loans. Small and medium businesses need to show their cashflow will be impacted by the tariffs and won’t need to pay back the capital for 36 months — until after the Trump administration has left the White House.
Medium and large businesses will be able to access $2 billion of funding through the Canada Strong Diversification Fund, which “support tariff-impacted companies with shovel-ready projects.”
