In a move aimed at protecting the Canadian economy and boosting local industry, the Canadian government announced a new program that allows companies affected by U.S. tariffs to apply for exemptions or refunds under certain conditions, such as the inability to obtain goods locally or from non-American sources. Exemptions will also be considered in exceptional cases with severe economic impacts. Canadian Finance Minister, Dominic LeBlanc, emphasized the necessity of protecting Canada's economy and its workers.

This move comes after the United States imposed a 25% tariff on products imported from Canada and Mexico, and a 10% tariff on Canadian energy imports, justifying this by saying these countries are not cooperating in combating drug smuggling and illegal immigration. In response, Canada announced a 25% tariff on U.S. imports worth CAD 30 billion, with plans to impose additional tariffs on imports worth CAD 125 billion including cars, metals, agricultural products, meats, and dairy products.

Additionally, some Canadian provinces have taken steps to support local products and reduce reliance on American goods. For example, Ontario has announced a halt to the sale of American alcoholic beverages in its stores, while British Columbia has decided to stop selling beverages from U.S. states controlled by the Republican Party. These measures aim to boost the local economy and support Canadian products in the face of U.S. tariffs.

While these measures demonstrate Canada's commitment to protecting its local industries, they may be interpreted by the United States as an escalation in the ongoing trade dispute. However, the Canadian government asserts that these steps are essential to safeguard its economic interests and Canadian workers in the face of current trade challenges.