Canada will match the latest U.S. tariffs on a dollar-for-dollar basis and expand financial support for businesses reeling from the trade war, the federal government announced Tuesday.

The government said that Canada will introduce tariffs on over 700 American products starting on Sept. 8, covering an estimated $27.6 billion in imports from the U.S. The tariff rate per product will vary and match those imposed by the Trump administration, ranging from 15 to 50 per cent.

U.S. President Donald Trump’s latest tariffs went into effect on Saturday after trade talks broke down and Canada accused the Americans of negotiating in bad faith.

Those 50 per cent tariffs cover roughly 5 per cent of Canadian imports — or $27.6 billion worth in goods — and aren’t eligible for an exemption under the compliance rules for the Canada-United States-Mexico Agreement or CUSMA.

Canada said the counter tariffs will apply to sectors most targeted by American tariffs such as “steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.”

The federal government also introduced expanded supports for businesses and workers impacted by the trade dispute. This includes a $1.5 billion increase in funding for the regional tariff initiative, which provides financial support for businesses to adapt to the latest trade disruptions.

Ottawa is providing an additional $500 million in liquidity to the Business Development Bank to offer low-cost loans and $2 billion to stand up the Canada Strong Diversification Fund, which will provide financial support for tariff-impacted companies.

The government said it’s making $3.5 billion available for targeted relief for workers, including measures to make it easier to access unemployment benefits. This includes extending waiving the one-week waiting period for EI.

It also said it’s merging the work-sharing and retention grant schemes into one program that would offer up to $1,000 in funding per employee.

More to come…