The Canadian federal government has formally unveiled a package of retaliatory tariffs on roughly 700 American products, covering a total of $27.6 billion in imports. The levies, set at 15, 25 and 50 per cent depending on the product, take effect on September 8. Finance Minister François-Philippe Champagne, Industry Minister Mélanie Joly and other cabinet members announced the measures in Ottawa alongside a $7.5 billion support program for Canadian businesses. As a new phase of the trade conflict begins, companies across the country are bracing for higher costs and disrupted supply chains.
Steel and aluminum tariffs will double from 25 to 50 per cent, while furniture and clothing face the same 50 per cent rate. The top tier also covers perfumes, cosmetics, smartphones, dairy products, tableware and kitchenware, plywood, paper products, honey, molasses, malt extract, doors, windows and frames, and cutlery. A 25 per cent tariff applies to various seafood items, large kitchen appliances, cheese and curd products, carpets and textiles. Air conditioning equipment is listed at 15 per cent. Energy-related countermeasures are absent from the list.
Champagne said the terms proposed by Washington were “uneconomic, unfair and ultimately unacceptable,” adding that the Canadian response is designed to protect domestic market share rather than generate revenue. Joly described the measures as strategically targeted, noting they are intended to exert political pressure on specific U.S. states.
Steve deWeerd, owner of Toronto-based Brentview Electronics, described the situation as “a horror show.” His company sells speakers and televisions and handles audiovisual installations for homes and condominiums. DeWeerd worries that if the cost of cables and other installation materials jumps by 50 per cent, overall project budgets will rise and consumers may postpone purchases. “Before, we could give customers a timeline and had a buffer if goods were coming from the States. Now we don’t know what will happen tomorrow. We could sell something to a client at a profit and by the time it arrives, we’re losing money,” he said.
The beauty sector is feeling similar strain. Stella Pham, who recently opened a nail salon in midtown Toronto, said shampoos, cosmetics and nail polish are all on the tariff list, which could force her to raise prices shortly after launching the business. Evan Light, a professor at the University of Toronto, pointed out that tariffs on fibre optic cables, network cables and building materials will affect housing construction, data centres and university projects. “This will significantly change how we evaluate expenses,” he said.
The $7.5 billion assistance package announced alongside the tariffs includes temporary changes to employment insurance eligibility that unlock $3.5 billion in funding, an additional $1.5 billion for the Regional Tariff Response Initiative, a new $500 million liquidity stream through the Business Development Bank of Canada’s Pivot to Grow program, expanded eligibility for the bank’s tariff-related programs, a $2 billion Canada Strong Diversification Fund, and adjustments to the Large Enterprise Tariff Loan facility. Under the regional initiative, the cap on non-repayable contributions rises from C$1 million to $3 million, while liquidity support increases to $2 million. Employment insurance measures include extending the waiver of the one-week waiting period and an extra 20 weeks of benefits for long-tenured workers, plus a new temporary rule allowing people who voluntarily left their jobs to access benefits under certain conditions.
Dan Kelly, president of the Canadian Federation of Independent Business, criticized the package as “the usual alphabet soup of complicated programs” that small business owners will struggle to understand, let alone use. Candace Laing, president of the Canadian Chamber of Commerce, said loans may be well intentioned but can become a burden when repayment comes due, warning that red tape could undermine the relief effort.
Conservative Leader Pierre Poilievre has called on Prime Minister Mark Carney to recall Parliament and release the text of the rejected trade agreement. Parliament is currently scheduled to return on September 21. Champagne did not directly say whether the sitting would be moved earlier, stating only that the government is focused on supporting industries and workers.
