Ottawa unveils counter-tariffs on $27.6B of U.S. goods and a $7.5B support package

Canada answered the latest U.S. tariffs on Tuesday with its own. Finance Minister François-Philippe Champagne announced surtaxes on about $27.6 billion of American imports, covering roughly 700 products, at rates of 15%, 25% or 50% matched to what Washington now charges on similar Canadian goods. The measures take effect at 12:01 a.m. on Sept. 8.

The government paired the countermeasures with a $7.5-billion support package for workers and businesses, including temporary changes to Employment Insurance. Champagne said the U.S. terms "were uneconomic, unfair, and ultimately unacceptable."

What is covered

The largest tier is 50%, which applies to steel and aluminum (up from 25%), furniture, clothing, perfumes and makeup, smartphones, milk products, tableware and kitchenware, plywood, paper products, cutlery and doors and windows, according to BNN Bloomberg's breakdown of the Finance Department list.

Energy-related countermeasures were excluded. Officials said the goal is to protect Canadian market share rather than raise revenue, and Industry Minister Mélanie Joly said some products were chosen to put pressure on specific U.S. states.

• 25%: various seafood, large kitchen appliances, cheese and curd, carpets and textiles
• 15%: products such as air conditioning machines

The support package

The $7.5 billion breaks down into several pieces:

Law firm Bennett Jones noted that existing remission relief for goods used in health care, public safety, manufacturing, food packaging and agriculture will apply until June 30, 2027.

• $3.5 billion for temporary EI changes, extending the waiver of the one-week waiting period and 20 extra weeks of benefits for long-tenured workers, plus a new measure for some workers who left a job voluntarily
• $2 billion for the Canada Strong Diversification Fund
• $1.5 billion more for the Regional Tariff Response Initiative, where the cap on non-repayable contributions rises to $3 million from $1 million
• $500 million for a new liquidity stream under BDC's Pivot to Grow program

The risks

Retaliation is a tax paid by Canadian importers, and some of it can reach shoppers. A Bank of Canada analysis of the 2025 counter-tariffs, cited by BNN Bloomberg, found retail prices on affected items rose about 6% relative to non-tariffed goods, before returning to pre-tariff levels roughly three months after those measures were dropped.

There is also the risk of escalation. President Donald Trump had already threatened to raise tariffs on Canadian vehicles, auto parts and steel to 50% on Jan. 1. Remission rules and the exclusion of energy are meant to limit the damage to Canadian manufacturers that rely on U.S. inputs.

What it means for you

If you were planning to buy a U.S.-made appliance, phone, furniture or cosmetics, prices on some items could rise after Sept. 8, depending on how retailers handle existing stock and whether they switch suppliers. Checking where a product is made, and comparing Canadian or non-U.S. alternatives, may help.

Workers in tariff-exposed industries should know that the EI changes are designed to make benefits faster and longer for those laid off. Keeping an emergency fund and reviewing a household budget remain the most practical buffers. This is general information, not personalized advice.

Related

• Emergency fund basics for Canadians
• How to beat inflation

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