Countermeasure Tariffs and Support for Canadian Businesses

August 28, 2026

Earlier this week, Minister of Industry Melanie Joly, Minister of Finance and National Revenue, François-Philippe Champagne, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, Patty Hajdu, and the Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario, Evan Solomon held a press conference announcing supports for Canadian businesses impacted by unjustified U.S. tariffs, as well as further details on the government’s response.

Upon the beginning of the press conference, the Government of Canada released the full list of products included in this wave of retaliatory tariffs. 

A few important qualifications:

• The tariff depends on the product’s HS classification and country of origin, not simply whether it was purchased from an American supplier.
• Finance Canada permits exceptional remission requests where existing relief is unavailable. That could provide a basis for a sector request covering specialized theatrical or film equipment for which there is no reasonably available Canadian substitute.

US Products Subject to Tariff Countermeausres that May Impact You

• Theatrical and film lighting: U.S.-origin LED motion-picture and theatrical spotlights are explicitly subject to a 50% tariff. Certain lighting fixtures and parts are also listed at 50%. This could materially affect theatres, production companies and venue-equipment projects.
• AV and digital equipment: Certain monitors are subject to 50%, while parts used in television, video-monitor and video-projector systems are subject to 25%. Network switching and routing equipment is at 50%, smartphones at 50%, and some electrical cable at 25%. This could affect cinemas, broadcasters, production facilities, immersive exhibitions, digital-media organizations and venue IT upgrades.
• Cultural construction and renovations: Plywood and laminated wood products are generally subject to 50%, while steel, aluminum, fasteners, furniture, seating, carpeting, lighting, HVAC equipment and some tools are covered at rates ranging from 15% to 50%. This is potentially significant for cultural infrastructure projects and stage-set construction. 
• Costumes and wardrobe: Selected dresses, suits, jackets, knitwear and other apparel are subject to 50%. This could affect theatres, dance companies and film productions sourcing finished wardrobe from U.S. suppliers.

View full list of US Products Subject to Tariff Countermeasures

Countermeasure tariffs come into effect on Tuesday, September 8 at 12:01am.

Alternative Vendors not Subject to Tariffs

Do you recommend a Canadian or alternative vendor that is not subject to the tariffs? Email the Membership & Communciations team at Info@PACT.ca, so we can create a list below. 

Supports for Businesses & Workers

Minister Joly announced that the government is introducing an additional $7.5 billion package, to support Canadian businesses, which includes support through the different regional development agencies (ACOA, PacifiCan, FedNor, PrairiesCan, etc) and the Business Development Bank of Canada (BDC).

Support for Canadian Businesses

• A new $500 million liquidity stream under the Business Development Bank of Canada’s Pivot to Grow program to provide working capital to businesses facing cash-flow shortfalls as a result of U.S. tariffs. This new liquidity stream will be added to provide working capital support for small and medium-sized businesses facing immediate cashflow pressures.
  • This program will be available to companies directly impacted by tariffs, regardless of sector.
  • Companies will be eligible for loans ranging from $250,000 to $5 million.
  • Interest only-payments over 36 months.

Rapid Response Support for Workers and Employers 

The government is introducing a new suite of $3.5 billion Rapid Response Supports for Workers and Employers to help Canadians affected by tariffs.

Workers:

• Extending the temporary EI measure waiving the 1-week waiting period by 1 year;
• Extending by 1 year the temporary EI measure allowing workers to receive EI without first using their separation payments, such as severance or vacation pay;
• Extending by 8 months the temporary measure providing long-tenured workers with an additional 20 weeks of regular EI benefits;
• Introducing a new 1-year temporary measure allowing workers who voluntarily left jobs in recent months to access EI without being penalized, as long as their most recent job loss was through no fault of their own;
• Increasing support to connect workers with jobs through JobBank.gc.ca, including highlighting opportunities created through investments in major projects, Build Canada Homes, and defence procurement;

Employers:

• Establishing a new Workforce Retention and Retraining Program that combines the existing EI Work-Sharing program and Worker Retention Grant into one streamlined program designed to be more accessible and generous;
• Supporting new and existing Work-Sharing flexibilities under the new program;
• And are providing employers with additional funding of up to $1,000 per participant to cover training and administrative costs.

Other Announcements

• An additional $1.5 billion investment through the Regional Tariff Response Initiative, delivered by Canada's regional development agencies;
• Broadened access to the Business Development Bank of Canada’s tariff-related programs;
• An additional $2 billion investment through the new Canada Strong Diversification Fund (a new stream of the Strategic Response Fund (SRF));
• And new flexibilities to the Large Enterprise Tariff Loan facility.

PACT and PAA will continue to monitor the situation and provide updates as they become available. 

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