Trump’s new tariffs of 50% mean Canadians could pay more for these goods – National

Consumers in Canada may face higher prices for some goods if newly announced U.S. tariffs take effect next month, some experts and businesses say.

This comes after US President Donald Trump on Monday evening threatened to impose new tariffs of up to 50 percent on some Canadian imports that may be covered by provisions in the current Canada-United States-Mexico Agreement (CUSMA).

Trump signed three executive orders on Monday, each using a different justification for the new tariffs: provincial and territorial boycotts of American alcohol products, Canada’s retaliatory tariffs on US-made vehicles and parts, and quotas on American milk imports under Canada’s supply management system.

In each executive order there is a detailed attachment listing hundreds of other products that could be subject to a 50 percent tariff. These include a variety of plants and produce, wood and paper products, clothing and textiles, electronics and components, dog leashes and leashes, floating docks, swimming pools and wading pools, and even hockey sticks.

Responding to the tariff announcement, Premier Mark Carney on Tuesday said “we will consider all options as to how we would respond if they do come into effect.”

The rates could come into effect after the deadline on August 19.

When countries like the United States impose tariffs on certain goods from certain countries, this means additional costs for American consumers and businesses when they import those products.

Even though the tariffs are borne by the importing business or individual, these costs are usually absorbed into general prices because the business actor passes on higher costs to consumers.

In the case of these new tariff threats, Trump is targeting more goods made in Canada and imported into the US, meaning Americans who import tariffed Canadian goods will have to pay more to do so.

“The sticks we were selling at a certain price are now going up in price because of the tariffs,” said Jeffrey De Belle, president and founder of Custom Hockey Sticks.

“It almost feels like a blow to us Canadians and hockey people.”

When faced with these additional costs, businesses have to make difficult decisions. They must bear additional costs that could reduce profits, reduce costs elsewhere to offset those costs, or pass all or part of those additional costs on to consumers.

This means US consumers will end up paying higher prices for Canadian-made goods as a result of the new tariffs.

“It will be difficult because prices will skyrocket,” De Belle said.

“We’re basically going to put a 50 percent charge on our website to cover these costs and, are they going to keep buying? We’ll see.”

Even if the cost increases are felt directly in the US, experts say Canadians could still feel the impact.

John Boscariol, a partner in the international trade and investment law group at McCarthy Tétrault LLP, said there are two scenarios in which Canadians could see higher prices if the tariffs go into effect within 29 days.

“Because these tariffs are imposed on products entering the United States, some of the products on the list enter production in the United States,” he said.

“As a result, US products become more expensive. And when Canadians import US products into Canada, we could see prices rise there.”

This means Canadians could face higher prices from products that cross the US border multiple times and are hit by these new duties.

For example, one of the products targeted by Trump’s threat of new tariffs of 50 percent is plywood and wood veneer sheets.

If US furniture manufacturers import these products from Canada, then they will be subject to additional duties from the tariff policy.

Once the wood is manufactured into finished products, such as cabinets, if Canadian customers want to order it, they may face higher prices than before the tariffs were implemented. This is because manufacturers have to pay the tariffs first, and may pass on those additional costs to customers.

Boscariol said Canadians could also pay a higher price if Canada responds to this latest threat by imposing more retaliatory tariffs.

“The second potential impact is that it really depends on how Canada responds to this latest threat. If there is a push on the Canadian side to reimpose retaliatory tariffs, this would make products more expensive for Canadians.

With files from Adriana Fallico of Global News

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