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.