Where Trump’s looming 50% tariffs could hit consumers hardest

New U.S. tariffs of up to 50 percent on Canadian imports could significantly impact Canadian consumers if enacted. Trade experts warn that these tariffs, set to take effect on Aug. 19, will first burden American businesses and consumers before ultimately being passed on to Canadian shoppers. Joy Nott, a KPMG Canada trade and customs expert, explains that manufacturers must balance recovering costs and profitability while avoiding losing customers, leading to potential price hikes for consumers.

John Boscariol, a McCarthy-Tétrault trade lawyer, expects finished automotive products, furniture, food ingredients, and sporting goods to be particularly affected due to multiple tariff layers along the manufacturing process. Nott highlights how a shampoo bottle example illustrates the complexity of these tariffs, affecting plastics, resins, and other components.

Jesse Goldman of Osler, Hoskin & Harcourt LLP suggests that while consumers may face higher prices, the broader economic impact on Canada could be even more severe, influencing employment, productivity, and investment.