A U.S.-Canada tariff battle looms. These 10 things could get costlier
U.S. President Donald Trump could hit Canada with tariffs as early as next week, raising the risks that Ottawa would impose retaliatory tariffs on the United States amid growing fears of a trade war.
“If the president does choose to proceed with tariffs on Canada, Canada will respond and everything is on the table,” Prime Minister Justin Trudeau said during a news conference Tuesday in Montebello, Que., where his team is gathered for a two-day cabinet retreat.
Trudeau signalled that Canada’s counter-tariffs could cover the value of Trump’s proposed 25 per cent tariffs on all Canadian goods.
“I support the principle of dollar-for-dollar matching tariffs. It’s something that we are absolutely going to be looking at if that is how they move forward,” he told reporters.
The Retail Council of Canada has warned that tit-for-tat tariffs could raise prices for consumers on both sides of the border.
“Retaliatory tariffs, especially ones targeting retail goods that are politically sensitive to the U.S., increase the cost of those goods for Canadians,” said Matt Poirier, vice-president of the Retail Council of Canada.
“That is because when tariffed goods are imported the buyer, in our case retailers, must pay the tariff to bring the goods into Canada for sale. These costs are most often passed along to the consumer.”
What are some goods that could get more expensive?
“If we’re looking at across-the-board tariffs, the cost of your breakfast cereal will go up,” said Fen Osler Hampson, co-chair of the Expert Group on Canada-U.S. Relations at Carleton University.
The U.S. is the world’s largest exporter of breakfast cereal and Canada is its biggest export market. According to the U.S. International Trade Administration, Canada accounts
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