Could these Canadian products get more expensive if Trump’s tariffs return?
U.S. President Donald Trump may have announced a three-day pause on 50 per cent tariffs, but Canadian shoppers may not be in the clear just yet.
Hours before the tariffs on roughly $20 billion in imports were set to take effect on Aug. 19, Trump announced the pause on social media.
“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three-day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” he wrote.
Just because it’s in capital letters doesn’t mean it’s done, though.
Shortly after, Prime Minister Mark Carney released a statement saying substantial progress had been made in discussions with the U.S., but “there is important work still to be done.”
While the pause means Canadian products won’t immediately face the new U.S. duties, some goods could still become more expensive for Canadians if, in three days’ time, the tariffs are imposed.
Now, if something is on the tariff list, it doesn’t mean a $100 Canadian product would automatically become $150 in Canada. The tariff would be charged on only those Canadian goods entering the U.S., meaning the immediate cost would fall on the American importers.
But Canadian manufacturers could still feel the effects.
If they lose American customers because their products become more expensive in the U.S. due to the duties charged at the border, companies could respond by reducing production, changing where they sell their products or increasing prices in Canada to help make up for lost revenue.
On the other hand, there is a slight possibility that some products could become cheaper.
If Canadian companies redirect goods that would have been sold in the U.S. back into the Canadian market, the increased supply could potentially keep prices down.
What products in Canada could be affected by the tariffs?
The proposed tariff list covers a surprisingly wide range of Canadian goods.
Alcohol: beer (including non-alcoholic beer), wine, liquor and cider
Sports equipment: hockey sticks, ice skates, golf and gym equipment and fishing rods
Food: honey, dairy products, syrups, doughs, and sugars
Home improvement: cement, vinyl flooring, plywood, laminate, other building materials and power tools
Home goods: furniture, kitchenware, tableware, paintings, candles, lamps, vacuums
Clothing: T-shirts, sweaters, trousers, dresses, gloves and coats
Beauty products: cosmetics, perfumes and essential oils
Electronics: smartphones, cameras, projectors, video game consoles and toys
The list also includes a number of more specialized products such as luggage, jewelry, paper, swimming pools, and even Christmas decorations.
For now, the immediate threat has been delayed. The pause is only for three days, though, and Aug. 22 could bring another round of negotiations or a major change in the tariff plans. Chalk it up to another wait-and-see situation.