Canada announces targeted countermeasures and substantive support for workers and businesses in response to U.S. tariffs

LONDON, ON, Aug. 28, 2026 /CNW/ -- The Government of Canada has negotiated intensively and in good faith with the United States (U.S.) toward a fair and comprehensive trade agreement that would protect Canadian workers and their families, strengthen the economy, provide greater certainty for businesses, and respect Canada's sovereignty.

In recent days, however, the U.S. proposed new terms that were not in Canada's best interest, basically, asking too much of Canada, and offering too little in return. Canada therefore suspended negotiations rather than accepting a bad deal that would undermine Canadian workers, businesses, strategic sectors, and our national interest. Canada did not choose this trade conflict, but we need to respond to provide a level playing field to our businesses.

Today, while visiting Attica Manufacturing in London, Ontario, the Honourable John Zerucelli, Secretary of State (Labour), highlighted new support for workers and businesses most impacted by tariffs and trade disruptions, announced measures to protect and support Canadian workers and businesses during this period of uncertainty and volatility.

Following the U.S. decision to impose a 50 per cent tariff on $27.6 billion of Canadian goods effective August 22, Minister Champagne confirmed earlier this week that Canada will match the new U.S. tariffs dollar for dollar, rate for rate, with additional Canadian tariffs on U.S. goods. This focused response will protect Canadian workers, farmers, fishers, families, and businesses, defend industries harmed by unjustified U.S. tariffs, and help Canadian producers compete with U.S. products in the Canadian market.

Effective September 8, Canada will impose counter-tariffs of 15, 25 and 50 per cent on products drawn from those targeted by U.S. Section 338 and Section 232 tariffs, with the rate for each product matching the corresponding U.S. rate.

Canada's counter tariffs will apply to products covering $27.6 billion in imports from the U.S. and will focus on sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, that are most impacted by U.S. tariffs. 

In addition, to support Canadian workers and businesses impacted by U.S. tariffs, the government is also introducing a $7.5 billion package of new and enhanced measures that deliver fast, simple and agile supports to Canadian workers and businesses, building on the nearly $25 billion in supports the government has provided since the implementation of the U.S. unjustified tariffs.

 This package includes:

• an additional $1.5 billion investment through the Regional Tariff Response Initiative, delivered by Canada's regional development agencies (RDAs), to help small and medium-sized enterprises, including liquidity supports to manage the pressures related to tariffs.
• a new $500 million liquidity stream under the Business Development Bank of Canada's Pivot to Grow program to help businesses manage immediate cash-flow pressures in addition to targeted programs for the forestry, steel and aluminum sectors.
• broadened access to the Business Development Bank of Canada's tariff related programs by lowering the minimum revenue requirement for applicants to $1 million.
• an additional $2 billion investment through the new Canada Strong Diversification Fund, to support tariff-affected businesses with shovel-ready projects that support ongoing capital maintenance. This new initiative will work closely with RDA programming for project intake and triage.
• a new suite of $3.5 billion Rapid Response Supports for Workers and Employers to help Canadians affected by tariffs. This will help workers access income support when they need it through extended and additional EI temporary flexibilities; and support their transition into new opportunities through new investments in training delivered in the workplace and enhancements to JobBank.gc.ca. This will also help employers keep their workforce through a difficult period with the help of the new Workforce Retention and Retraining Program (WRRP).
• new flexibilities to the Large Enterprise Tariff Loan facility, administered by the Canada Enterprise Emergency Funding Corporation (CEEFC).

The government will continue to assess programs and policies to support businesses who continue to be impacted by tariffs, including expanding the availability of existing measures to newly impacted sectors.

Quotes

"When the United States asked too much and offered too little, we chose to stand up for Canadians. Our dollar-for-dollar, rate for rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, and businesses as we build a stronger, more resilient, and more diversified Canadian economy."

- The Honourable François-Philippe Champagne, Minister of Finance and National Revenue

"In a more uncertain world, Canada will continue to invest in our greatest strengths: our workers, our businesses, and our capacity to compete. Today's new measures will protect jobs, strengthen the industries that drive our economy, and secure the supply chains that underpin our prosperity. Canada will not simply respond to change, we will shape it, growing a stronger economy that delivers opportunity, security, and prosperity for Canadians."

– The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions  

"Canada has what the world wants, and we will not allow any nation to determine our future. We will always stand up for Canadian workers and businesses. We are strong because we take of each other and that is why we will always be masters of our own destiny."

– The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario 

"Canadians expect their government to stand up for them and their interests. As the United States impose unjustified tariffs, Canada's government is focused on building our strength at home and protecting our economy. Today's countermeasures will ensure workers, farmers, families, and businesses affected are supported throughout this period of uncertainty. Together, we will weather this storm--united and resilient." 

- The Honourable Dominic LeBlanc, President of the King's Privy Council for Canada and Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs, Internal Trade and One Canadian Economy 

"Our new government is focused on what we can control - building a stronger, more resilient economy here at home. That means investing in Canadian workers and businesses, strengthening our supply chains and expanding our trade relationships to create good jobs and long-term growth."

- The Honourable John Zerucelli, Secretary of State (Labour)

"Southwestern Ontario is among the regions facing the greatest pressure from unjustified U.S. tariffs, and as the federal voice for this region, I am ensuring that reality is understood in Ottawa. Our government is taking action to protect jobs and keep businesses operating and growing across Southwestern Ontario. We are committed to ensuring workers and businesses in this region have the support they need to weather uncertainty and emerge stronger."

– The Honourable Arielle Kayabaga, Member of Parliament for London West

"Through dollar-for-dollar, rate-for-rate counter-tariffs and a multi-billion-dollar support package, our new government is prioritizing Canadian businesses and workers while reducing our reliance on a single trading partner. Together, we will overcome these challenges and build a stronger, more resilient economy."

-Peter Fragiskatos, Parliamentary Secretary to the Minister of Immigration, Refugees and Citizenship and Member of Parliament for London Centre

"Government support during this period of trade uncertainty has made a tangible difference for Canadian manufacturers like Attica. These investments are about much more than new equipment--they are investments in our people, our technology, our productivity and our ability to compete on the world stage. We're proud to manufacture in London, Ontario, and we're committed to continuing to invest in our skilled workforce and the future of Canadian manufacturing."

-Andy Mavrokefalos, President, Attica Manufacturing

Quick facts

• The primary objective of the counter-tariffs is to protect Canadian workers, producers and manufacturers harmed by U.S. tariffs by putting them on a better competitive standing against U.S. products in the Canadian market. 
• Goods subject to 50 per cent counter tariffs include steel and aluminum products that were previously only subject to a 25 per cent counter tariff, furniture, and clothing and apparel.
• Goods subject to 25 per cent tariffs include appliances, dairy products, such as cheese, fish and seafood, and certain steel and aluminum derivative products.
• 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. 
• The Canada Strong Diversification Fund will be administered through the Strategic Response Fund, helping firms adapt and thrive in the face of trade disruptions.

Associated links

• List of products subject to new counter tariffs effective September 8, 2026
• Canada Strong
• Support for Canadian workers and businesses affected by U.S. tariffs

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SOURCE Employment and Social Development Canada

Contacts: For media enquiries, please contact: Ty Willness, Press Secretary, Secretary of State (Labour), [email protected], [phone], Media Relations Office, Employment and Social Development Canada, 819-994-5559, [email protected]