Tariff talks took a turbulent turn this week and U.S. President Donald Trump declared he was renaming Lake Ontario to Lake America. Prime Minister Mark Carney made his own waves when he fired back, explaining that the name — derived from the Wendat word Ontari’io for “beautiful lake” — predates the foundation of both countries.

Following the U.S. decision to impose a 50 per cent tariff on $27.6 billion of Canadian goods effective August 22, the Government of Canada confirmed on August 25 that Canada will match the new U.S. tariffs dollar-for-dollar, rate-for-rate, with additional Canadian tariffs on U.S. goods. This focused response is intended to protect Canadian workers and businesses, defend industries harmed by unjustified U.S. tariffs, and help Canadian producers compete with U.S. products in the Canadian market.

“When the United States asked too much and offered too little, we chose to stand up for Canadians,” said François-Philippe Champagne, Canada’s Minister of Finance and National Revenue. “Our dollar-for-dollar, rate for rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, and businesses as we build a stronger, more resilient, and more diversified Canadian economy.”

Effective September 8, Canada will impose counter-tariffs of 15, 25 and 50 per cent 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. and will focus on sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, that are most impacted by U.S. tariffs.

In addition, to support Canadian workers and businesses impacted by U.S. tariffs, the feds are also introducing a $7.5 billion package of new and enhanced measures that deliver  supports to Canadian workers and businesses, building on the nearly $25 billion in supports the government has provided since the implementation of the U.S. tariffs.

 The federal support package includes:

an additional $1.5 billion investment through the Regional Tariff Response Initiative, delivered by Canada’s regional development agencies (RDAs);a new $500 million liquidity stream under the Business Development Bank of Canada’s Pivot to Grow program to help businesses manage immediate cash-flow pressures in addition to targeted programs for the forestry, steel and aluminum sectors;broadened access to the Business Development Bank of Canada’s tariff related programs by lowering the minimum revenue requirement for applicants to $1 million;an additional $2 billion investment through the new Canada Strong Diversification Fund, to support tariff-affected businesses with shovel-ready projects that support ongoing capital maintenance;a new suite of $3.5 billion Rapid Response Supports for Workers and Employers to help Canadians affected by tariffs;new flexibilities to the Large Enterprise Tariff Loan facility, administered by the Canada Enterprise Emergency Funding Corporation (CEEFC).

The government will continue to assess programs and policies to support businesses who continue to be impacted by tariffs, including expanding the availability of existing measures to newly impacted sectors.

The Federation of Canadian Municipalities (FCM), the national voice of almost 2,000 municipalities, represents more than 90 per cent of all Canadians from coast to coast to coast.

FCM welcomes the new federal package announced in response to U.S. tariffs. “Specifically, FCM supports modernizing and optimizing small business support going forward and efforts to pivot, diversify and find new markets, as this will be key to retaining local jobs across communities,” says Tim Tierney, President of FCM.

“Canadian communities are already meeting this challenge, and additional federal investment in local infrastructure, such as in roads, water and sewer infrastructure, would help ensure economic growth and support businesses in moving more products from coast-to-coast-coast.”

For further information:

Previous coverage:

Elbows Up, Again: Impacts of U.S.-Canada trade war on the environmental industry

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