The Canadian federal government announced a C$7.5 billion [1] support package and dollar-for-dollar counter-tariffs on U.S. goods on Tuesday morning.
The measures follow the collapse of trade talks and the imposition of new 50 percent [2] U.S. tariffs on Canadian goods. This escalation threatens a significant portion of the bilateral trade relationship, potentially destabilizing key industrial sectors.
Industry Minister Mélanie Joly said the response in Ottawa. The counter-tariffs target U.S. goods valued at $27.6 billion [3]. The government intends for these measures to protect domestic workers and businesses from the immediate impact of the trade dispute.
Financial assistance will be distributed through several channels to mitigate economic losses. Small businesses may receive non-repayable loans of up to C$3 million [5] and interest-free loans of up to C$2 million [6]. The total support package is estimated at about US$5.4 billion [7].
This latest intervention follows a period of sustained economic tension. The federal government has provided nearly C$25 billion [4] in tariff-related support over the past 18 months to maintain stability in affected industries.
The government said the support package is designed to help the economy weather the current trade volatility. Officials said the counter-tariffs serve as a direct response to the U.S. policy change.
“Canada announced a C$7.5 billion support package and dollar-for-dollar counter-tariffs on U.S. goods.”
This move signals a shift toward a more aggressive defensive trade posture by Canada. By combining direct financial subsidies for small businesses with retaliatory tariffs, Ottawa is attempting to shield its domestic supply chain from external shocks while applying political pressure on the U.S. government to return to the negotiating table.
