Following the federal government’s latest announcement, we wanted to provide CTMA members with an update on Canada’s response to the new U.S. tariffs taking effect on September 8, 2026.
The Government of Canada has unveiled the Canada Strong Response Plan, introducing targeted counter-measures and a $7.5 billion support package designed to help Canadian workers and businesses navigate the ongoing trade dispute.
What’s changing?
Beginning September 8, Canada will implement up to 15%, 25%, and 50% counter-tariffs on approximately $27.6 billion worth of U.S. imports. The measures are intended to match U.S. tariff actions while supporting Canadian industry through a rapid, simple, and flexible response.
Business & Industry Supports
Regional Tariff Response Initiative (RTRI)
- Small and medium-sized businesses may access up to $3 million in non-repayable funding and $2 million in interest-free loans through regional development agencies.
- Canadian businesses can apply for financing ranging from $250,000 to $500 million, including interest-free support for qualifying projects over the first 36 months.
Canada Strong Diversification Fund
- A new $2 billion funding stream will support larger, shovel-ready projects that help companies diversify markets, strengthen supply chains, and improve competitiveness.
Large Enterprise Tariff Loan Facility (LETL)
- Enhanced flexibility includes support periods extended from 24 to 36 months and loan terms increased from 10 to 15 years for eligible large employers.
Export Development Canada (EDC)
- EDC has expanded its Trade Impact Program (TIP), providing additional financing and risk-management solutions to help Canadian exporters maintain liquidity and pursue new international opportunities.
The government is investing an additional $3.5 billion over four years to help employers retain skilled workers.
Employment Insurance Enhancements
- Continued waiver of the one-week EI waiting period.
- Immediate access to EI without exhausting vacation or severance pay.
- An additional 20 weeks of benefits for long-tenured workers.
- Expanded eligibility for workers who recently changed jobs before being laid off.
- Employers experiencing reduced business activity can reduce employee workweeks while workers receive EI for days not worked, helping retain experienced staff during temporary downturns.
- Employers who provide training during reduced work schedules may qualify for a $1,000 training grant per employee, while workers can receive up to 70% income replacement during eligible training periods.
The Federal Government has also released the complete list of U.S. products subject to the September 8 counter-tariffs, covering a wide range of manufactured goods, industrial products, metals, machinery, and consumer products.
CTMA will continue monitoring developments and sharing updates as additional details and program application information become available.