The newest Canadian counter-tariff against the United States took effect on Sept. 8, escalating tensions in the trade conflict.
According to an article written by the Department of Finance Canada, Canada imposed 15 per cent, 25 per cent and 50 per cent counter tariffs on U.S. goods as a result of the tariffs enforced by the United States on similar Canadian products.
The article further states that the tariffs will cover $27.6 billion worth of U.S. imports and target sectors such as steel and aluminum, dairy, appliances, agricultural equipment, pulp and paper, plastics and electronics.
“The world is changing rapidly,” stated Health Canada in a different government article. “The United States is imposing new tariffs on Canada, designed to hurt and divide us.”
Dairy products, including milk, cream, whey and cheese face tariffs ranging from 25-50 per cent. Some dairy products face a maximum 50 per cent tariff, while some cheese products are subject to 25 per cent.
Many household goods, including plates, plastic containers, kitchenware, tableware and toilet paper also face tariffs of up to 50 per cent.
A 25 to 50 per cent tariff does not necessarily mean these products’ prices will increase in stores, as businesses can absorb the additional costs or switch to other suppliers.
However, previous Canadian tariffs show that consumers can still be impacted financially.
An article posted by the Bank of Canada in May examined more than 110,000 products sold by seven major Canadian retailers between February and December 2025, during the previous round of counter-tariffs. The time studied closely was March of that year, when Canada imposed 25 per cent tariffs on a broad range of U.S. goods. The authors also studied the time when these tariffs were removed six months later.
Artificial intelligence tools were used to determine where products were made and identify which U.S. goods were changed from Canada’s counter-tariffs. They estimated the impact of the counter-tariffs by comparing price changes for tariffed U.S. products with similar products that were unaffected.
“Our results show that prices of tariffed products rose gradually after March 4, 2025 — when Canada first imposed counter-tariffs on some U.S. products,” the article stated. “By mid-June 2025, these prices stood about 6 per cent above those of the control group — or roughly one-quarter of the 25 per cent counter-tariff.”
When the tariffs were removed in September, the article found the costs of products previously affected returned to their original prices.
“This finding highlights that expectations about the duration of tariffs can drive the pass-through of costs as much as the tariff itself does,” the article said. “When firms expect a tariff to be short-lived, they absorb most of the cost, [however] when they expect a tariff to last for some time, they pass some of it on to consumer prices.”
According to another article posted by Global News, the effects of the new tariffs could extend beyond U.S. imports, as higher costs for materials and supplies could also raise the prices of Canadian-made products.
“The products at the grocery store that are made in Canada, their prices are going to go up as a result of these retaliatory tariffs,” said University of Toronto Economics Professor, Joseph Steinberg, in the article. “Eventually what that’s going to do is it’s going to make it harder or at least more costly for Canadians to double down on ‘buying Canadian.’”
For Canadians, the immediate effect of the new tariffs will depend largely on how businesses respond. The federal government has said the tariffs are intended to respond to U.S. trade measures while protecting Canadian workers and businesses.
However, what consumers don’t know is whether those additional costs make their way into everyday stores and purchases. Previous tariffs suggest some of them could, but the size of any increase will depend on the product, the business selling it and whether alternative suppliers are affordable.
For now, Canadians should not expect every grocery item or American-made product to rise substantially. Instead, they should be aware over time and take note of how businesses adjust to the new costs.
To see all the products and goods subject to the new tariffs effective as of Sept. 8, visit the Department of Finance Canada website to find their list.