Tariffs 101

Tariffs May Happen on Feb 1: What Canadians Need to Know

Canada and the U.S. trade over $960 billion a year. If one side slaps a blanket tariff (the same extra tax on all goods), costs can jump on both sides of the border. Here’s what that means for you:

• What Are Tariffs?

  • Taxes on Imports: Countries use them to protect local businesses or negotiate deals.

  • Prices Go Up: Companies often pass tariff costs to consumers.

  • Retaliation: The other side might respond with its own tariffs, raising prices on even more goods.

  Why a 25% Tariff Hurts

  • Auto Industry: Car parts cross the Canada–U.S. border multiple times. Tariffs add costs at every stop, which could raise car prices.

  • Agriculture: Canadian farmers could face extra taxes selling to the U.S. If Canada fights back, American imports (like fruit and dairy) could also cost more here.

  • Energy: We supply over half of America’s imported oil. If the U.S. looks elsewhere, demand for Canadian oil might drop — meaning fewer jobs and higher pump prices for Americans.

  Who Pays the Price?

  • Canadian Consumers: If Canadian exporters lose money, they might raise prices at home to make up the difference.

  • American Shoppers: If they can’t find cheaper alternatives, U.S. buyers will pay more for Canadian goods.

  • Jobs on Both Sides: Factories that rely on “just-in-time” parts (especially in the auto sector) could see disruptions or layoffs.

  Could There Be Any Upside?

  • Some experts say this might push Canada to be more competitive, invest in new tech, or find new trade partners.

  • Local Goods could get a boost if international goods cost too much. Think more people buying “Made in Canada.”

  What Can You Do?

  • Stay Informed: Keep an eye on tariff news. Policies can change quickly, and so can prices.

  • Shop Local: Supporting Canadian businesses can help them manage any hits from tariffs.

  • Compare Prices: If costs jump, look for sales or substitute products. Every little bit helps.

  A 25 per cent tariff isn’t just a political headline. It could raise your grocery bill, affect car prices, and shift where we get our energy. It’s a reminder that big decisions in Washington can echo in our own wallets—no matter how unlikely they sound.