Canada confirms retaliatory measures against 700 US products and launches a $7.5 billion aid package for affected workers
Ottawa confirmed on August 25 the full list of its retaliatory tariffs against the United States: tariffs of between 15% and 50% on 700 US products, with a combined value of $27.6 billion, which will take effect on September 8. Along with the list, the government of Mark Carney announced a $7.5 billion support package for workers and businesses affected by the trade war, with significant changes to Employment Insurance (EI) that take effect immediately.
Which American products are going to cost more?
The list includes three tiers. At 50% tariff: perfumes, makeup, cell phones, dairy products, tableware, kitchen utensils, plywood, paper, honey, molasses, doors, windows, and cutlery; steel and aluminum are also included at this level. At 25% tariff: seafood, large appliances, cheese and dairy products, carpets, and textiles. At 15% tariff: air conditioning units, among a more limited group of products.
Why September 8th and not before?
It is the first working day after the Labour Day holiday, and it gives the Canadian government — now a final window of negotiation with Washington — two and a half weeks to finalize the technical details of the list before the retaliation takes effect.
What exactly changes in Employment Insurance?
The $7.5 billion package includes three direct adjustments to unemployment benefits: the waiting week before benefits begin is eliminated for another year; workers with longer tenure receive an additional 20 weeks of regular benefits; and those who recently quit a job through no fault of their own are now eligible for the program, something that is not normally permitted. The government allocated an additional $3.5 billion just to fund these changes to unemployment benefits.
What other support is available besides ISIS?
For small and medium-sized enterprises (SMEs), the Regional Tariff Response Initiative offers up to $1.5 billion in non-reimbursable contributions (up to $2 million for liquidity), and the Development Bank of Cuba’s Pivot to Grow program adds $500 million in loans ranging from $250,000 to $5 million. For large companies, the liquidity support period was extended from 24 to 36 months. A new Workforce Retention and Retraining Program was also created, providing up to $1,000 in training support per worker.
How does this affect the wallet of a Latino family in Canada?
On the one hand, supermarkets and everyday purchases will feel the impact of retaliatory tariffs, especially on dairy products and appliances. On the other hand, if someone’s job in manufacturing, agriculture, or logistics is directly affected by this trade war, the new unemployment package—with no waiting week and additional weeks for those with longer tenure—is the most concrete safety net the government has put on the table so far.
Writing by Mauricio Navas Talero LJI Reporter