Ottawa, August 25th, Xinhua News Agency - The Canadian federal government announced on the 25th that it will impose counter-tariffs worth 27.6 billion Canadian dollars (approximately 20 billion US dollars) on 700+ US goods, while launching a total aid program worth 7.5 billion Canadian dollars (approximately 5.4 billion US dollars) for businesses and workers.
Canadian federal officials stated that the total value of US goods affected by the counter-tariffs is equivalent to the 50% tariffs imposed by the US on Canada, achieving "equal and reciprocal" countermeasures. The Canadian tariff countermeasures will come into effect on September 8th.
Canadian Finance Minister Chrystia Freeland said that Canada's reciprocal tariffs and the multi-billion-dollar comprehensive assistance plan will effectively protect domestic workers, farmers, families, and enterprises.
According to the counter-tariff list released by the Canadian Ministry of Finance, this targeted counter-tariff mainly focuses on steel and aluminum, dairy products, household appliances, agricultural equipment, pulp and paper, plastics, and electronic products, with tax rates ranging from 15%, 25%, to 50%. Most tariffs on steel and aluminum imports from the US will increase from 25% to 50%; dairy products such as cheese, fish, and seafood, as well as some steel and aluminum derivatives, will be subject to a 25% tariff; other existing counter-tariffs, including those on US automobiles, will continue to be maintained.
In addition to the counter-tariffs, the Canadian government also announced the launch of a total aid program worth 7.5 billion Canadian dollars (approximately 5.4 billion US dollars), focusing on supporting small and medium-sized enterprises affected by the trade war. In terms of labor protection, the government will expand the "Work Sharing Program" and "Worker Retention Subsidy" to help enterprises avoid layoffs, allowing more employees to enhance their skills or receive retraining, and increasing the flexibility of unemployment insurance benefits.
US President Trump signed multiple announcements on July 20th, based on Section 338 of the Smoot-Hawley Tariff Act, imposing 50% tariffs on hundreds of specific goods imported from Canada, such as wine, hockey sticks, and cement. The relevant measures came into effect on August 22nd, but did not cover Canadian automobiles, auto parts, and steel products.
The US-Canada trade negotiations have failed to reach an agreement recently. Carney announced on August 22nd that Canada will implement equal retaliatory tariff measures starting from September 8th. Trump wrote on social media on August 24th that he will raise tariffs on Canadian automobiles, auto parts, and steel products to 50% starting from January 1, 2027.
