Canada’s counterpunch: What’s inside the government’s tariff and stimulus packages?

Prime Minister Mark Carney speaks about the trade dispute with the United States at the Davie Shipyard in Levis, Que., on Aug. 24, 2026. Photo by ANDREJ IVANOV/AFP via Getty Images files

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The Canadian government has announced it will impose $27.6-billion worth of counter-tariffs starting Sept. 8 — a dollar-for-dollar response to U.S. President Donald Trump‘s punishing Section 338 tariffs, which came into effect Aug. 22.

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At a press conference announcing the measures on Tuesday, federal ministers also pledged $7.5 billion in funding to support Canadian businesses and workers affected by the new levies. Here’s a closer look at what’s inside Ottawa’s tariff and stimulus packages.

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Which products has Canada targeted for counter-tariffs?

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Ottawa has introduced 15 per cent, 25 per cent and 50 per cent tariffs on more than 700 items drawn from the list of products tariffed under the U.S. Section 232 and Section 338.

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Most of the items on Canada’s list, which is over 100 pages long, will face tariffs of 25 per cent or 50 per cent. Only a small number of items will be taxed at 15 per cent.

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Items hit with 50 per cent counter-tariffs include steel and aluminum products, which were previously subject to 25 per cent counter-tariffs imposed by former Prime Minister Justin Trudeau’s government. Furniture, clothing and apparel are also on the list.

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Among the items hit with 25 per cent counter-tariffs are appliances, dairy products — including cheese — fish and seafood, and certain steel and aluminum derivative products (chains, nails, tacks, prefabricated structures, etc.).

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Other pre-existing counter-tariffs will remain, including a 25 per cent tax on vehicles imported from the U.S. that do not comply with the Canada–U.S.–Mexico Agreement (CUSMA).

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Which products will not face tariffs?

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While Prime Minister Mark Carney said at a separate news conference in Quebec on Monday that everything was on the table, notably missing from the list are export levies on potash and Canadian crude oil or electricity, of which the U.S. is a major consumer.

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Federal Industry Minister Melanie Joly said the counter-tariffs needed to be strategic, proportionate and serve Canada’s best interests.

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“This is, we think for now, the most strategic approach,” she said at Tuesday’s news conference. “When we’re looking at the counter-tariffs, we’re looking first at the businesses that are affected … We are also targeting products that will target states in the U.S. So we are being wise and strategic to put political pressure (on the U.S. administration).”

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What’s included in the stimulus package?

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The $7.5 billion in government funding introduced Tuesday includes measures to help Canadian workers and businesses (particularly small and medium-sized ones) in sectors most affected by the new Section 338 tariffs.

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The funding includes a $1.5-billion top-up to the pre-existing Regional Tariff Response Initiative (RTRI), to be administered by seven regional development agencies across Canada. The RTRI will provide up to $3.45 billion over four years to eligible businesses impacted by tariffs.

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The stimulus package also includes a $500 million liquidity stream delivered through the Business Development Bank of Canada (BDC), which will provide working capital to businesses facing cash-flow shortfalls as a result of U.S. tariffs. Companies eligible for the program — annual revenue requirements for applicants will be set at $1 million — will receive $250,000 to $5 million in loans with interest-only repayment over 36 months.