The latest Canada-U.S. trade dispute could eventually show up in the prices Canadians pay for appliances, electronics and other everyday goods.
New 50 per cent U.S. tariffs took effect Aug. 22 on roughly $28 billion in Canadian goods after last-minute negotiations failed to produce a trade agreement.
The tariffs apply to a range of Canadian products, including dairy products, clothing, hockey equipment, cement, furniture, some alcohol, and other goods.
Tariffs are charged when Canadian products enter the United States. So Canadians won’t automatically see prices here rise by 50 per cent.
The more direct impact on Canadian shoppers could come from the Federal Government’s response.
Prime Minister Mark Carney says Canada will impose dollar-for-dollar retaliatory tariffs beginning Sept. 8.
The new Canadian tariffs will focus on sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. A detailed list of affected products has not yet been released.
Carney has acknowledged the move will raise some costs and reduce choice for Canadians.
Exactly how much prices change will depend on which individual products are included and whether retailers and manufacturers pass those costs on to customers.
Among the categories people will want to keep an eye on are major appliances and electronics.
U.S.-made refrigerators, washing machines, televisions and other products could become more expensive if they appear on the final tariff list.
Food prices could also face pressure if farmers or processors pay more for equipment, packaging or other inputs. But that doesn’t mean grocery prices will suddenly rise by the tariff rate.
Ottawa is expected to release the detailed list of affected U.S. products before Sept. 8.
For Canadian consumers, that list will provide the clearest picture yet of where the trade dispute could affect household budgets.
(Bob Perreault)
