The federal government has announced a new $7.5-billion package of measures designed to support Canadian businesses and workers affected by the latest round of U.S. tariffs.
The announcement comes after the U.S. imposed a 50 per cent tariff on $27.6 billion of Canadian goods under its Section 338 and Section 232 tariff measures, the former of which took effect on August 22nd, 2026. In response, Canada has announced new counter-tariffs on selected U.S. imports, along with additional financial and employment supports for Canadian businesses and workers.
For businesses navigating the increasingly complex Canada-U.S. trade environment, the new measures include funding for liquidity, business diversification, capital projects, workforce retention and retraining.
New Canadian counter-tariffs
Beginning September 8th, 2026, Canada will impose counter-tariffs of 15 per cent, 25 per cent and 50 per cent on select U.S. products. The rate applied to each product will correspond to the U.S. tariff rate affecting comparable Canadian products.
The new measures will cover approximately $27.6 billion of U.S. imports, with the counter-tariffs concentrated in industries significantly affected by U.S. tariffs. These include steel, dairy, appliances, agricultural equipment, pulp and paper, electronics and other products.
Some steel and aluminum products that were previously subject to a 25 per cent Canadian counter-tariff will move to a 50 per cent rate. The 50 per cent rate will also apply to certain furniture, clothing and apparel products. Appliances, dairy products such as cheese, and certain steel and aluminum derivative products will be subject to a 25 per cent tariff.
As noted in the government announcement, “Other existing counter-tariffs against the U.S., including autos, remain in place and Canada’s tariff remission framework also remains available to assess requests for exceptional relief.” This latest round of relief measures include:
$1.5 billion for small and medium-sized businesses
The government is providing an additional $1.5 billion through the Regional Tariff Response Initiative. The program is intended to provide support to businesses facing tariff-related pressures, including liquidity assistance for small- to medium-sized businesses. The additional funding increases the resources available to businesses dealing with disruptions to cash flow and operations resulting from the current trade environment.
Broader access to BDC tariff programs
Access to tariff-related programs offered through the Business Development Bank of Canada (BDC) is also being expanded. The minimum annual revenue requirement for businesses applying for these programs is being reduced to $1 million. The change is intended to make tariff-related financing available to a broader range of Canadian businesses, including smaller companies that may previously have fallen below the eligibility threshold.
The government is also providing $500 million in additional liquidity through BDC’s Pivot to Grow program. This funding is designed to help businesses address immediate cash-flow requirements, alongside targeted support available to businesses in sectors including forestry, steel and aluminum.
Canada Strong Diversification Fund
A further $2 billion is being allocated to a new Canada Strong Diversification Fund. The program will support tariff-affected businesses undertaking projects that are ready to proceed and that contribute to ongoing capital maintenance. The initiative will be administered through the Strategic Response Fund and coordinated with regional development agencies.
Support for workers and employers
The federal package also includes $3.5 billion in new Rapid Response Supports for Workers and Employers. These measures are designed to assist employees affected by tariff-related disruptions through a temporarily expanded Employment Insurance program, income support and expanded opportunities for workplace training. The government will also enhance Job Bank services to help workers transition to new employment opportunities.
For employers, the new Worker Retention and Retraining Program (WRRP) is intended to help companies retain employees while providing opportunities for workers to develop new skills during periods of reduced business activity.
Greater flexibility for large businesses
The government is also introducing additional flexibility into the Large Enterprise Tariff Loan facility, administered by the Canada Enterprise Emergency Funding Corporation. This measure is intended to provide greater financing flexibility for larger businesses dealing with the financial effects of tariffs and trade disruptions.
Ongoing review of tariff supports
The federal government has indicated that it will continue monitoring the effectiveness of its tariff-related programs and policies. Existing measures may be expanded to cover additional sectors if businesses continue to experience significant impacts.
For Canadian businesses, the new measures represent another layer of federal support in an evolving trade environment. Companies affected by U.S. tariffs should review the eligibility requirements for the programs available to them, assess their potential cash-flow and financing needs, and consider how changes to tariffs may affect their costs, supply chains and markets.
As the Canada-U.S. trade situation continues to develop, businesses should also monitor further announcements from the federal government and review their financial plans regularly to ensure they’re responding to changes in tariff exposure and available government support. Our team will provide regular tariff- and support measure-related updates as they become available.
The Adams + Miles team
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