Canada's Fiscal Room Creates Scope for Tariff Relief, Stimulus, Rosenberg Research Says

10:15 AM EDT, 08/25/2026 (MT Newswires) -- Canada's ample fiscal room leaves scope for tariff relief and broader stimulus as the US trade dispute intensifies, said Rosenberg Research in a Tuesday note. Canada is set to announce retaliatory tariffs against the US on Tuesday, with the countermeasures due to take effect on Sept. 8, according to Rosenberg Research. Canada and the US broke off trade talks late Friday. The following day, US tariffs on Canadian goods worth C28 billion took effect. Finance Minister Francois-Philippe Champagne is expected to unveil support for sectors hit by the trade war, potentially including expanded Employment Insurance benefits, added Rosenberg. Tuesday's measures could mark the start of broader stimulus extending into the fall budget. Canada has significant fiscal room, second only to Germany among G7 economies, giving Ottawa scope to cushion households and businesses from tariffs while supporting economic activity in the second half of the year, according to Rosenberg.