U.S. President Donald Trump is standing firm on his tariff threat against Canada.
As the March 4 deadline approaches, Canada says it is prepared to impose counter-tariffs on American goods -- but which items will be affected, and how could that impact consumers?
“That doesn’t mean that prices go up 25 per cent,” said Concordia University economics professor Moshe Lander. “Part of it is going to be dictated by what options consumers have. The more options that consumers have, the less likely the price is going to go up by the full 25 per cent.”
The federal government has posted a complete list of items that could be affected by the counter-tariffs on its website.
The list is long, but it includes some essentials like grocery items, including meat, dairy products, pasta and alcohol.
“If it’s something that you absolutely have to have, then, unfortunately, you’re going to have to bear the cost of that. That’s the whole premise as to who’s going to ultimately pay the tariffs,” Lander adds.
The government has said that it chose specific items to impact key U.S. stakeholders and because there are Canadian alternatives.
“Decide what patriotism is worth. The movement right now to only buy Canadian or to try and avoid using anything connected to the U.S. comes with a cost. Is it something that you’re willing to bear?” the professor said.
Lander says there is not much Canadians can do other than wait it out and adjust their spending where they can.
“Free trade is how you maximize society’s well being. It’s not an opinion, it’s a fact,” he said. “Any attempt to block free trade, and whether it’s a quota, whether it’s a tariff, whether it’s carving out certain industries that are not subject to free trade, ultimately reduces the well being of society.”
The Canadian government says the countermeasures will be announced as soon as Trump acts and they will be here to stay until the U.S. eliminates its own tariffs.
