Canada’s federal government unveiled its plan for retaliatory tariffs against the U.S. alongside new tariff relief measures yesterday — here’s the lowdown.
What happened: As promised, the new tariffs affect the same imports the U.S. has targeted with its own levies, which came into effect on Saturday, and will be set at the same rates (either 15%, 25%, or 50% depending on the good). Over 700 distinct items are being tariffed — everything from frozen oysters to swivel seats — covering $27.6 billion worth of imports.
Notably, the raft includes 50% levies on things like steel, clothing, milk products, and smartphones. Barring divine trade intervention, they will take effect on September 8.
As for relief plans, the feds announced new measures and extensions of existing ones totalling $7.5 billion meant to protect industries, businesses, and workers affected by the U.S. tariffs. Some of these measures include:
Spending $3.5 billion on “rapid response supports,” like extending three measures that make it easier to collect Employment Insurance, as well as adding a new one.
Using $2 billion to establish the Canada Strong Diversification Fund, which will award funding to businesses with “shovel-ready projects” in the works.
A $1.5 billion top-up to the Regional Tariff Response Initiative, which allows Canada’s seven regional development agencies to dole out cash to affected businesses.
Why it matters: BMO estimated that the U.S. tariffs could knock half a percentage point off of GDP growth, while economist Trevor Tombe warned they could result in the loss of 90,000 jobs — that’s a lot of workers and businesses who will desperately need these new supports.
Zoom out: In other news, Donald Trump took to Truth Social again to voice his displeasure and threatened to change the name of Lake Ontario to Lake America (one of his favourite bits). On the other hand, he did express love for Quebecers and French Canadians.—QH
