Five things now pricier in Canada due to tariffs

August 1, 2025

The trade war between the US and Canada has intensified with President Trump raising tariffs on Canadian imports from 25% to 35%, though many goods are exempt under existing trade agreements. Canada has responded with counter-tariffs on billions of dollars worth of American products, from household appliances to food items. These tariffs are already causing price increases for Canadian consumers across multiple sectors, including appliances (up 2-4.

Who is affected

Canadian consumers facing higher prices on everyday items including appliances, vehicles, food, clothing, and building materials
Canadian retailers and grocers like Loblaw that must manage price increases and declining sales
Canadian homebuyers and the construction industry experiencing higher costs and project delays
Canadian automakers and manufacturers dealing with disrupted supply chains
Residents of Ontario experiencing a significant slowdown in housing activity (8-26% decrease in housing starts)
American exporters whose products are subject to Canadian counter-tariffs

What action is being taken

Canada is imposing counter-tariffs on tens of billions of dollars worth of American products
Canada has implemented temporary six-month exemptions starting in April for certain US food products to provide "immediate relief" for Canadian businesses
Loblaw is labeling tariff-affected items with a "T" to inform consumers
Canadian residential developers are pivoting to sourcing materials locally or from non-US markets
Consumers are adapting by shopping around for non-US products, keeping vehicles longer, and reducing purchases of tariff-affected items

Why it matters

Everyday items are becoming more expensive for Canadians, with appliance costs rising 2-4.5% and vehicle prices increasing more than 5%
Supply chains between the US and Canada are being disrupted, particularly in the automotive sector where vehicles may cross borders up to eight times during assembly
The construction industry faces uncertainty and higher costs, potentially slowing housing development
Some manufacturing materials cannot be sourced outside the US, forcing Canadian businesses to pay higher prices
Economic activity is slowing in tariff-affected regions, with Ontario seeing housing starts decrease by 8-26%
Consumer purchasing behavior is changing, with tariff-labeled products seeing a 20% decline in sales

What's next

No explicit next steps stated in the article

Read full article from source: BBC