Tariff Toolkit

Stay up to date on the latest information regarding Tariffs and how is effects the Canadian Water Quality Industry

Below is an outline of what the Canadian Government has proposed, along with the list of items included in the retaliatory tariffs.  The good news, from what I can tell, is that most water treatment equipment has been excluded from this list.  

We sent a letter at the start of the tariff talks outlining how taxing certain CS codes for water treatment parts and accessories could affect Canadians’ health, as costs could rise substantially and consumers may not want to spend their hard-earned dollars on treatment when they should be spending them on drinking water.

Information from our advocacy company – First Lake Solutions:

This month, the government announced the Canada Strong Response Plan to support Canadian workers and businesses affected by U.S. tariffs. This plan includes targeted countermeasures and a $7.5B worker support package.

• In this announcement, the Minister of Finance also highlighted the government’s intention to match the U.S. tariffs dollar for dollar, effective September 8th. This includes up to 15%, 25%, or 50% in counter-tariffs on $27.6B in U.S. imports of similar Canadian products to match U.S. measures.

Here’s what you need to know:

✓ Water filter products are safe for now.

CWQA flagged yesterday that you were concerned that Canada might include 8421.99 water filter parts and other codes within that prefix in their list of products subject to counter-tariffs, since the U.S. targeted 8421.99 water filter parts.

These codes are not included in the list of products subject to counter-tariffs.

What’s Happening & When:

September 8, 2026

Canada implements counter-tariffs on $27.6B in U.S. imports. Rates: 15%, 25%, or 50% depending on the product category.

Review the full product list here.

Business and Industry Support

Regional Tariff Response Initiative

• Through their regional development agencies (RDAs), small businesses with $1M in annual revenue will have access to $3M in non-repayable loans and a $2M interest-free loan.

Business Development Bank of Canada (BDC)

• Through the BDC, small businesses will have access to between $250k and $500M in support through interest-free loans, of which are non-repayable for the next 36 months.

Canada Strong Diversification Fund

• Larger businesses will have access to a new stream of the Strategic Response Fund, into which the government has announced they will be putting $2B in funding to support tariff-impacted companies with shovel-ready projects.

Large Enterprise Tariff Loan (LETL) facility

• The government announced new flexibilities to the $10B LETL facility to provide flexible liquidity to bridge large employers through this period, including increasing supports from 24 to 36 months, and increasing the maximum loan term from 10 to 15 years.

Worker and Workforce Support

The government announced an additional $3.5B over 4 years to be dedicated towards workforce support.

Employment Insurance

The government will be extending 3 temporary Employment Insurance measures for up to another year.

• The one-week waiting period for EI benefits to kick in will continue to be waived to allow Canadians to access the benefit when they need it.
• Workers will be able to access EI benefits immediately, before having to exhaust their vacation or severance pay.
• The government announced an additional 20 weeks of EI access for long-tenured workers.
• The government announced its intention to amend the reasons for separation rule, ending penalization for those who have chosen to recently change jobs, allowing those who have lost a new job prospect to access EI.

Workforce Training & Retention Programs

The government announced enhancements to existing worker training and retention programs to allow employers to keep workers even in reduced operations:

• Employers can reduce work hours to as little as two days per week, while workers can receive regular EI benefits for days not worked.
• If an employer arranges training for their employees on their off days, income replacement through EI will be 70% of total earnings, as opposed to 55%.

• This program will include a new $1000 training bonus per employee for employers, delivered through regional development agencies.

Next steps: If you’re affected by tariffs or considering reducing hours, check the full government support page for eligibility and application details. These supports are designed to roll out quickly.