The Canadian Chamber of Commerce, the Ontario Chamber of Commerce, Unifor, and the Canadian Federation of Independent Business have commented on the federal government’s response to the US’ imposition of 50 percent tariffs on certain Canadian goods.
After the tariffs on $27.6 billion of Canadian goods took effect on August 22, the Canadian government announced on Tuesday August 25 that as of September 8, it would be countering with 15, 25 and 50 percent tariffs on products drawn from the Canadian goods impacted by the US’ s.338 and s.232 tariffs. The rate set for each product would be commensurate with the US rate.
The counter-tariffs would be imposed on $27.6 billion of goods imported from the US. They will concentrate on products from the steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics sectors, which are most affected by the US tariffs.
These measures would shield industries affected by the US tariffs while boosting Canadian producers’ competitive position against US products in the local markets. They would also safeguard Canadian workers, farmers, families, and businesses, the government said.
The federal government is also introducing a $7.5 billion package of measures to support Canadian workers and businesses in addition to the ~$25 billion it has invested since the US imposed what the Canadian government described as “unjustified tariffs.” The package includes the following:
- Injecting an extra $1.5 billion via the Regional Tariff Response Initiative to support small and medium-sized enterprises
- Introducing a $500 million liquidity stream under the Business Development Bank of Canada’s Pivot to Grow program to help manage immediate cash-flow pressures
- Dropping to $1 million the minimum revenue requirement for applicants to the Business Development Bank of Canada’s tariff-related programs
- Investing an additional $2 billion into tariff-affected businesses with shovel-ready projects supporting ongoing capital maintenance via the Canada Strong Diversification Fund
- Introducing a suite of $3.5 billion Rapid Response Supports for Workers and Employers
- Enhancing the Large Enterprise Tariff Loan facility’s flexibilities
Through October 2027, the waiver of the one-week employment insurance (EI) waiting period has been extended and workers have been permitted to claim insurance without consuming separation payments. The Work-Sharing Program has been extended to March 2027; moreover, an extra 20 weeks of EI has been offered to long-serving workers through June 2027.
Workers who voluntarily depart their jobs can collect EI without penalty. The government will also help connect unemployed and underemployed workers to major projects that are recruiting.
The Canadian Chamber of Commerce, the OCC, Unifor, and the CFIB largely applauded the government’s speedy action. However, the organizations also cautioned against red tape that could limit the measures’ effectiveness.
“Government is now moving at the speed of business to address the current trade negotiation collapse. If the government did not prioritize speed, some businesses would not still be there by the time support rolls out. We understand the government’s urgency to deliver rapid, agile and simple relief measures, which is why we cannot let red tape get in the way of being effective,” said Candace Laing, the Canadian Chamber of Commerce’s president and CEO, in a statement. “We see that the intention of loans are helpful, but they can also be a monkey on the back when they come due.”
Laing highlighted the long-term benefits of enabling businesses to diversify trading partners, improve sales within Canada, and upskill workers.
OCC president and CEO Daniel Tisch added that the government’s programs needed to “accessible, responsive, and delivered quickly” to enable businesses to prioritize job protection, customer service, and future planning.
“Businesses recognize the need for a strategic response to US trade actions, but any countermeasures must be carefully calibrated and developed in consultation with industry. Canada cannot afford measures that do long-term harm to our own companies, workers, or supply chains,” Tisch said in a statement. “Beyond immediate measures, Canada must use this moment to fix the fundamentals: pursue pro-growth tax reform, reduce red tape, continue modernizing Employment Insurance, remove internal trade barriers, and strengthen the conditions for investment, productivity, and growth.”
Unifor urged the government to accelerate procurement dollars, implement national industrial strategies, and encourage local corporations to Buy Canadian. It highlighted how the government's supportive measures did not reduce qualifying hours for part-time, part-year, seasonal and precarious workers; nor did they bolster EI benefit rates or introduce a minimum benefit. They also limited the extra 20 weeks of EI to just long-serving workers.
“Workers are being asked to absorb the economic shock of a trade war they did not start and cannot control. These EI measures will provide some welcome relief, but they are temporary fixes to a much bigger problem,” said Daniel Cloutier, Unifor’s Quebec director, in a statement. “Workers need income security they can count on, not a patchwork of measures that expires when the next deadline passes.”
Dan Kelly, CFIB’s president, said it seemed that small business owners “are being served the usual alphabet soup of complicated programs.”
“The giant list of counter tariffs will create their own severe challenges for many small businesses who have already done what they can to seek new sources of supply. Canada’s support programs need to be available for companies that use, import or distribute US products too,” Kelly said in a statement. “What we are looking for is one simple program for small businesses that removes as much of the burden of tariffs as possible, ideally delivered by the Canada Revenue Agency. Instead, we have a patchwork of agencies and programs that no small business has ever heard of before, largely delivering loans to businesses that will have no ability to pay them back.”
He noted that most small businesses were not qualified to apply to the Regional Tariff Response Initiative delivered by regional development agencies; some set a minimum requirement of $2 million in sales while others mandated that businesses employ at least 10 staff members.
“Unless the thresholds are eliminated entirely, then the government will have failed in its promise to support small business owners," Kelly said.
The CFIB called for an immediate small business tax rate cut retroactive to January 1. It also asked the government to extend the federal excise tax suspension on gasoline and diesel, which is set to lapse on September 7.