Canada doubles US steel and aluminium tariffs to 50% as trade conflict escalates

Canada will raise tariffs on US steel and aluminium to 50 per cent from September 8 as part of a CAD 27.6 billion (USD 19.88 billion) retaliatory package, while Ottawa introduces CAD 7.5 billion (USD 5.4 billion) in support for workers and businesses affected by the trade dispute.

Canada will double its tariffs on US steel and aluminium from 25 per cent to 50 per cent   , while imposing additional duties on more than 700 American products as trade tensions between the two countries intensify.

The measures, which take effect on September 8, form part of a CAD 27.6 billion (USD 19.88 billion) retaliatory package. The federal government said the measures are intended to match the latest round of US tariffs on Canadian goods dollar for dollar.

The new duties will also cover products including machinery, hand tools and other goods used throughout the construction supply chain.

Ottawa announces CAD 7.5 billion support package

Alongside the tariffs, the Canadian government has announced CAD 7.5 billion (USD 5.4 billion) in new support for workers and businesses affected by the trade dispute.

The package includes expanded Employment Insurance measures, changes to the work-sharing programme and a new CAD 2 billion (USD 1.4 billion) Canada Strong Diversification Fund for tariff-affected businesses.

The fund will support shovel-ready projects and ongoing capital maintenance.

Another CAD 3.5 billion (USD 2.5 billion) will provide rapid-response support for workers and employers, including extended temporary EI measures, workplace training and a new Worker Retention and Retraining Program.

The government is also making tariff-related programmes offered through the Business Development Bank of Canada more accessible by reducing the minimum revenue requirement for applicants to CAD 1 million (USD 70,000).

Finance Minister François-Philippe Champagne said Canada's response would be “proportionate, targeted and strategic” while supporting workers, businesses and industries affected by the US measures.

“We will support our workers, our businesses and our industry with whatever it takes, for as long as it takes,” Champagne said.

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Building trades welcome worker measures

Canada's Building Trades Unions (CBTU) welcomed the federal support, particularly the temporary extension of EI relief for workers affected by US tariffs on industries including steel, aluminium and automotive manufacturing.

The organisation also welcomed changes to the work-sharing programme intended to make it easier for more workers to access the measure.

CBTU said the steps were positive for protecting and reinforcing Canada's unionised skilled workforce.

The organisation said the continued trade dispute also reinforces the need to strengthen domestic supply chains and ensure major infrastructure, industrial and energy projects continue to move forward.

Construction supply chains face more uncertainty

The latest measures add further uncertainty for Canada's construction industry, with the new tariffs covering steel, aluminium, machinery, hand tools and other products used across the sector.

The Building Trades Unions said major projects should be planned and delivered in a way that maximises employment opportunities for Canadian workers while making full use of Canadian labour and expertise.

The organisation has also called for stronger coordination of major projects and workforce planning through mechanisms such as a Labour Supply Coordinating Committee.

Such coordination would bring project timelines together with workforce availability, training and worker mobility, according to CBTU.

The organisation said this approach could help Canada build domestic capacity while prioritising Canadian tradespeople affected by tariffs.

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Canada seeks to reduce disruption

The new Canadian counter-tariffs cover CAD 27.6 billion (USD 19.88 billion) worth of goods, including products in sectors already affected by US tariffs such as steel, aluminium, autos and lumber.

Federal officials have also said Ottawa is working to limit the impact of its retaliatory measures on Canadian businesses. Support programmes could help companies replace tariffed American products with alternatives.

For the building trades, the focus remains on maintaining employment and ensuring major projects continue despite the trade disruption.

The latest escalation follows the collapse of trade negotiations between Ottawa and Washington that had appeared close to producing an agreement.

US President Donald Trump has since threatened further tariffs on Canadian products, leaving the trade dispute unresolved.

Canada's response now combines higher duties on US goods with financial support for affected workers and businesses, as Ottawa seeks to manage the impact of the escalating trade measures on Canadian industry and supply chains.

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