Trump’s tariff threats to China could hit Canadian wallets. Here’s why
U.S. President Donald Trump’s threats to impose tariffs on imports from China could send shockwaves through global supply chains that experts warn could raise prices on everything from big-ticket household goods to dollar store purchases in Canada.
Since Trump’s re-election in November, Canadian officials have been largely focused on a response to his threats to impose sweeping tariffs of 25 per cent on all goods entering the country from Canada and Mexico.
After entering office earlier this week, Trump updated his deadline for imposing tariffs to Feb. 1.
Experts have warned a slew of goods from orange juice to cosmetics could get more expensive if Canada and the U.S. exchange tit-for-tat tariffs.
But North America isn’t Trump’s only target: the president also threatened to impose 10 per cent tariffs on all goods entering the U.S. from China on the same date. Previously, he’s threatened even loftier tariffs of up to 60 per cent on Chinese imports.
While economists have warned of serious damage to economies on both sides of the border if Canada and the U.S. waded into a tariff war, the cost of Chinese tariffs could also be steep for consumers.
“It’s a very complex situation. It’s like an ecosystem, right? If the U.S. puts massive tariffs … on China, you’re probably going to see it affect Canada,” retail analyst and author Bruce Winder told Global News.
A tariff is a charge levied by a government on an import into the country. It’s paid directly by the importing company but can result in higher prices for end consumers if the business raises prices to offset the cost of the tariff or shifts its supply routes to a more expensive alternative.
Winder warns that both situations would be in play in the case of tariffs on China.
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