U.S.-Canada Tariff Update: What Your Business Needs to Know
Following the U.S. decision to impose a 50% tariff on $27.6 billion of Canadian goods (effective August 22), the Government of Canada announced today it will respond with matching countermeasures — plus significant new support for affected businesses and workers.
What's changing:
Starting September 8, Canada will apply counter-tariffs of 15%, 25%, and 50% on U.S. goods, matching the U.S. rates dollar-for-dollar. These target sectors including steel, aluminum, dairy, appliances, furniture, clothing, agricultural equipment, pulp and paper, and electronics.
Why this matters to you:
- If you import from the U.S., expect cost increases on affected goods starting September 8. Now is the time to review suppliers and contracts.
- If you export to the U.S., you may already be feeling the impact of the U.S. tariffs on your pricing and competitiveness.
- Even businesses without direct cross-border trade may see ripple effects through supply chains and pricing.
New federal support available ($7.5 billion package):
- Regional Tariff Response Initiative – $1.5B in liquidity support for small and medium businesses
- BDC Pivot to Grow – $500M in cash-flow support; eligibility now open to businesses with as little as $1M in revenue (down from previous threshold)
- Canada Strong Diversification Fund – $2B for capital projects at tariff-affected businesses
- Rapid Response Supports for Workers – $3.5B including EI flexibilities, training, and a new Worker Retention and Retraining Program to help employers avoid layoffs
- Large Enterprise Tariff Loan – expanded flexibility for larger businesses
Next steps:
We're monitoring this closely and will share details on eligibility and how to apply as they become available. If your business is directly affected by these tariffs — either as an importer or exporter — please reach out to the Chamber so we can support you and represent your concerns.
The Canadian Chamber of Commerce is mobilizing their Chamber Network to support Canadian businesses as they face the new 50% U.S. tariffs.
If you haven’t already, please complete this short survey and share concrete examples of how the new 50% tariffs will affect businesses in your community. We also encourage you to share the survey with your members.
Whether it’s lost orders, rising costs, delayed investments, supply chain disruptions or employment impacts, these real-world examples will help us demonstrate the consequences for Canadian businesses and strengthen the case we bring to government.
New Federal Tariff Support Measures
The federal government has also announced a new $7.5 billion package of measures to support Canadian businesses and workers impacted by U.S. tariffs. Here’s a quick overview:
Support for SMEs and liquidity — beginning in September
- An additional $1.5 billion for SMEs through the Regional Tariff Response Initiative, with non-repayable contributions of up to $3 million, including up to $2 million for demonstrated liquidity needs.
- A second $500 million BDC liquidity stream through its Pivot to Grow program for businesses directly impacted by tariffs, with loans ranging from $250,000 to $5 million and interest-only payments available for 36 months.
Canada Strong Diversification Fund — effective immediately
- A new $2 billion fund for tariff-impacted businesses with shovel-ready projects, including expanded eligibility for medium-sized businesses and a planned fast-track review and approval process.
Support for workers and employers
- $3.5 billion in Rapid Response Supports for Workers and Employers, including extensions to temporary EI measures and a new Workforce Retention and Retraining Program to help employers retain and retrain workers.
Support for large employers
- Expanded flexibility under the $10 billion Large Enterprise Tariff Loan facility, with liquidity support increasing from 24 to 36 months and maximum loan terms increasing from 10 to 15 years.
As these programs roll out, and particularly as the remission process gets underway, please continue to keep us informed about what you and your members are experiencing. Specific examples will be especially valuable as we continue engaging with government on where additional support, flexibility or relief may be needed.
Support for Canadian workers and businesses affected by U.S. tariffs
The government is introducing a $7.5 billion package of new and enhanced measures to protect Canadian workers and businesses, building on the nearly $25 billion in supports the government has implemented over the past 18 months. This targeted and proportionate package focuses on workers and businesses, particularly small and medium-sized enterprises, in sectors most affected by the new tariffs announced by the United States.
Regional Tariff Response Initiative
Effective September 2026, the government will bolster the Regional Tariff Response Initiative delivered by Canada's seven Regional Development Agencies by $1.5 billion. This will help small and medium-sized enterprises respond to tariff pressures.
- The cap on non-repayable contributions will be increased from $1 million to $3 million, which will now include support for demonstrated liquidity needs in addition to existing support for pivot or capital investment plans.
- Liquidity support available will be up to $2 million.
Loans and advice to help you navigate tariffs
Pivot to Grow
Get up to $5M to help you counter the effects of U.S. tariffs on your business.
Limit the impact of tariffs on your business. Get financing and advice to help your business manage tariff costs, strengthen cash flow and stabilize operations.
Contact Us with your concerns
Please email us at your earliest convenience or contact our Executive Director personally at shelly@stalbertchamber.com
