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August 25, 2026

When Canadian officials announced dollar-for-dollar counter-tariffs on the United States today, in response to the Trump administration's latest salvo in its trade war against Canada—new 50 percent tariffs on roughly $20 billion worth of Canadian imports—they also introduced additional funding to support Canadian businesses, workers, and industries through the crisis.

Canada's aid package is worth $7.5 billion Canadian, or about $5.4 billion US, and—among other things—gives every small business access to $3 million in non-repayable loans, plus an additional $2 million in interest-free loans. Workers also received a one-year extension on temporary employment insurance benefits the Canadian government had already issued following Trump’s earlier round of tariffs on Canada last year.

While we don’t know whether Canada’s support plan will work, it goes far beyond anything the Trump administration has mustered at home, where the president has simply chosen to shrug off the harms of his tariffs for American workers and consumers. 

As Trump escalates his petty quarrels into massive trade wars, we are the ones who face the brunt of the damage.

—Alex Nguyen

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