Canadian consumers are likely to face higher prices, even for some Canadian products, as a result of new counter-tariffs of up to 50 per cent on hundreds of U.S. goods worth about $28 billion.
Tariffs are taxes or duties applied for importing certain goods, and as businesses generally face heightened costs, including from these new counter-tariff measures, experts say they may choose to pass them along to consumers by raising sticker prices.
These latest counter-tariff measures come as a response to U.S. President Donald Trump imposing 50 per cent tariffs on hundreds of Canadian products last month, especially those within the dairy, alcohol and automotive sectors.
Although the U.S. tariffs are mainly felt by American businesses and consumers, at least in the near term, some experts say Canada’s counter-tariff measures in response could soon lead to higher prices for Canadian consumers.
“Food and beverage would be at the top of that list. Ingredients going into food and beverages products, we know dairy products are on the list, both the lists of both countries in that case,” says John Boscariol, partner at McCarthy Tétrault and co-head of the international trade and investment law group.
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“Secondly, I’d look at appliances, home appliances are on that list and we can expect that that could also be an area of a potential expansion to the extent that we’re going to see further retaliation on each side.”
Boscariol also says some agricultural products will likely get hit by these counter-tariffs, which could eventually result in higher prices for food and beverages in Canada.
Among the hundreds of U.S. items facing these new counter-tariffs, there are consumer focused goods ranging from U.S. dairy products to seafood, some furniture products made of wood, beauty and makeup items ranging from perfume to sunscreen, as well as clothing and textiles including men’s suits, t-shirts and dresses, track suits and ski suits, even hazardous material suits and other protective clothing.
Beyond consumer goods hit by these new counter-tariffs, there are also many items Steinberg refers to as “intermediate” goods. This means items that consumers may not regularly see or purchase, but are often required as part of a manufacturing process or supply chain that ultimately could mean higher prices for a wider variety of goods — even if they’re made in Canada.
For example, tariffs of 15 or 25 per cent are being applied to U.S. tower cranes, jacks and hoists, forklift trucks and lawn mowers, rail locomotives, train parts and railway maintenance vehicles, among many others. There are also smaller components that go into making machinery and other equipment, including pumps, compressors, fans, insulating conductors and networking components.
U.S. steel, aluminum and copper products are also being hit with a 50 per cent counter-tariff, up from 25 per cent. This includes steel rods, bars and sheets, along with prefabricated items such as bridges, towers, scaffolding and door and window frames, and aluminum products such as wires, bars, rods and foil.
“These are what I would call ‘intermediate’ inputs that manufacturers and agricultural businesses in Canada need to conduct their business,” says Steinberg.
“You and I don’t buy construction machinery parts or insulated conductors, but the Canadian businesses that operate here, many of them do. And so that’s going to raise the cost of doing business for lots of different types of Canadian firms, manufacturers, and agricultural firms in particular.”
“The longer this goes on, the longer that increased cost of business is kind of with us, the more it’s going to reduce our economy overall.”
Steinberg also says that because Canadian businesses are going to see their costs increase, that also could mean Canadian-made products are likely going to go up in price.
Consumer patriotism has been on the rise in Canada ever since the U.S. launched its trade war with the world last year, and especially with Trump’s repeated threats on Canada’s sovereignty and that it should become the “51st state.”
Canadian products that consumers were prioritizing may become more expensive as a result of these counter-tariffs.
“The products at the grocery store that are made in Canada, their prices are going to go up as a result of these retaliatory tariffs, and eventually what that’s going to do is it’s going to make it harder or at least more costly for Canadians to double down on ‘buying Canadian,” says Steinberg.
But the majority of Canadians may be willing to endure some higher prices amid the latest trade war escalations, as suggested by a new Angus Reid Institute poll released Tuesday, which polled roughly 1,500 Canadian adults from Sept. 3 to Sept 4.
Three-in-five (60 per cent) of respondents said they are willing to stay the course on Canada’s current negotiating strategy even if it means paying 10 or 20 per cent more for household expenses, including groceries and clothing.
“No one wants to see continuing rounds of additional duties or additional trade measures being taken that harm consumers on both sides of the border. It’s counterproductive for consumers, processors and manufacturers, and it’s in the best interests of both parties to now come to the negotiation table and hammer something out,” says Boscariol.
“Consumers are going to be pretty conservative over these next days and weeks when they think about their spending, knowing that all signs point to increasing costs, unfortunately.”
– with files from The Canadian Press.
Carney and his elitist friends playing with Canadians livelihoods. Of course it will end in misery for millions.
Jonny canuck you’re delusional. Sovereignty has never been on the menu. Trump doesn’t want more democrats. You’ve been ruled by fear
Tbh I look to see if Americans made it, others or Canadians. Tariff or not, I look for a Canadian option first. If a website does not say where it’s made, I assume it’s the states and don’t buy it and that’s the same if I do find out it’s American made. Hard to pay more on American products when you don’t buy them
Tex doesn’t take a rocket scientist to see
In a war of economic attrition , the US will outlast us.
If Canada hadnt given away or ignored our resources for the last 50 years it woudld be different. But here we are.
The elbozos are going to squeal before Christmas.
Worse yet, if we continue on this trajectory a physical military invasion will occur before Halloween.
Another sub 70 iq move by Captain Elbowzo
Judge me by the prices at the grocery store….
Ass Up!
They are waging a war on us, the people. They want us to starve. There’s no other way to look at it. If you can’t see it then you’re blind. Divide and conquer ~Ass Up!
The “deal” was 25% tariffs and end to Canadian sovereignty. That’s what you losers want? Only a sucker or bootlicker would say yes to that.
Article promises alot but unfortunately provides little real substance. Waste of time reading!!
I’m 70 and my dad used to tell me when I was a teenager, the rich get richer and the poor get poorer
Finally admitting that unaffordable Canada is about to get worse? Such wonderful leadership we have.
To the Carney supporters: i damn him with his own promises. He has zero credibility. So, how can you defend him? Hmm?
The arm chair quarterbacks and second guesser’s are out in full force because they know so much more than Carney or anyone else as to what Canada should do. Give your heads a shake and don’t mind the rattle.
Did something have to be done +-
might have been best to not tariff the USA
I mean we didn’t even get interprovincial trade fixed they had premiers meetings with fancy meals all talk always no action
Canada is left taking the hit-however most average Canadian’s are living on the financial edge.
How this all plays out who knows?
Will be a lot of business with little business .
People will stop any unnecessary spending.
Carney said to judge him by the price in the grocery store. Well THAT isn’t aging well is it. Carney promised a deal within a month of becoming Prime Minister. Well THAT didn’t age well either did it. Carney said he was the guy to get a deal with Trump. Well THAT didn’t age well either did it. Carney told Canadians we have never had it so good. Now he is telling us tgat we, average Canadians, are going to suffer. You can bet your bottom dollar that Carney and his elite friends will not suffer and will continue to spend hundreds of thousands of our tax dollars on expensive food and drink when jetting around the world at our expense. No, only you and I will be the ones to suffer under the Carney Liberals’ arrogance and pride. It is easy to talk tough when it isn’t you who will be doing the suffering.
Anonymous the village idiot has spoken..everyone listen! (Sarcasm) Anonymous the lonely idiot. Sad.
We are getting what we voted for—wondering where our elbows are?
This is the cost of having your elbows up.
Bring it on.
Not until the idiot boomers and east coasters are starving will they learn. By that time the damage is done.
Canada is cooked. There is literally no turning back now.
All that big talk from boomers and delusional liberal supporters is about to be tested. Get ready to fail miserably.
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In the USA, they have dozens of alternatives, in many cases they make it themselves. In Canada, we long ago decided to do nothing and build nothing. So we have nothing
Yeah. I know. Sldjskamdnjdjsnsjs92737291’+#(?#+’#+
Of course prices are going to go up and Canadians will suffer. Unfortunately you cannot eat patriotism and it won’t pay the bills. Most Canadians are living month to month now and it’s only going to get worse. Carney promised to get a deal with Trump within a month of the election and he has failed miserably. He promised more housing, getting rid of the inter provincial tariffs, a pipeline so we can move our oil across Canada, cheaper food prices and he has done none of these things and our economy and dollar is in free fall. He keeps going on about the EU helping but the EU has a deal with Trump and they don’t want to rock that boat not to mention how the elections are going over there so the EU have their own problems to worry about. Canada is on its own no matter what Carney says. Plus anyone who thinks things will go back to the way it was before Trump when he is gone is living in a dream world. The world has changed just like it did during Covid and it’s not going back so we may as well get used to it.
Lmfao
Canadians don’t want higher prices and are struggling to feed their families
You get what you vote for Ontario
The LPC doesnt care if Canadians starve as long as they can keep pretending they are “dealing” with Trump.
Their intellectually challenged and emotionally immature supporters beleive it and thats all that matters to them.
Canadians cannot afford this
How about making a deal