CANADA — Canada’s new retaliatory tariffs on roughly $28 billion worth of U.S. goods could soon hit Canadian consumers where it hurts most — their wallets.
The counter-tariffs, ranging as high as 50%, were introduced in response to U.S. President Donald Trump’s tariffs on hundreds of Canadian products. While designed to pressure Washington, economists warn Canadian importers and businesses will often have little choice but to pass at least some of the additional costs on to consumers.
Among the areas expected to feel the greatest impact are food and beverages, dairy products, appliances, furniture, cosmetics, sunscreen, clothing and textiles. U.S. steel, aluminum and copper products are also facing tariffs of up to 50%.
The impact could extend well beyond American products on store shelves. Canadian manufacturers rely on U.S. machinery, components, metals and other materials. As those inputs become more expensive, the cost of producing Canadian-made goods could also rise.
University of Toronto economics professor Joseph Steinberg warns this could even make the popular “Buy Canadian” movement more expensive, as domestic companies absorb higher supply-chain and manufacturing costs.
Despite the potential financial pain, an Angus Reid Institute poll cited in the report found 60% of respondents were prepared to continue Canada’s current negotiating strategy even if household expenses such as groceries and clothing rose by 10% to 20%.
Trade experts warn that the longer the tariff battle continues, the greater the risk of higher consumer prices, reduced spending and broader economic damage — increasing pressure on both Canada and the United States to return to negotiations.