Tariffs are making these 5 things more expensive in Canada

The trade war between the U.S. and Canada has intensified, with President Donald Trump raising tariffs on Canadian imports from 25% to 35%. While many goods are shielded by an existing North American trade agreement, several key products are being significantly impacted. This latest move follows Canada’s earlier imposition of its own counter-tariffs on tens of billions of dollars worth of American products. Experts anticipate that this ongoing dispute will lead to a continued rise in prices for everyday consumer goods in Canada.

Tariffs are making household appliances, such as fridges and washing machines more expensive for Canadian consumers. This is due to a combination of Canada’s counter-tariffs on U.S. made appliances and the rising cost of American sheet steel, which has been impacted by U.S. tariffs on imported metals.

According to Statistics Canada, the price of refrigerators and freezers has increased by an average of 2%, while dishwashing and laundry appliances are up 4.5% compared to last year. While consumers may find ways to save by purchasing non-U.S. products, experts say that “pre-tariff” sales are a clear sign that prices for these items will continue to climb.

The automotive sector has been hit particularly hard by the ongoing trade dispute between the U.S. and Canada, largely due to the intricate nature of their manufacturing supply chains. A vehicle’s components can cross the border up to eight times before final assembly, leaving the industry vulnerable to new tariffs.

A 25% tariff on cars and trucks not built in the U.S., along with Canada’s reciprocal tariffs and broader metals tariffs, has resulted in a price surge for new vehicles, which were up over 5% in June compared to last year. This has also caused a price increase in the used car market, as experts believe consumers are keeping their vehicles longer to avoid purchasing new ones.

Canada’s counter-tariffs are noticeably impacting grocery prices, despite a temporary six-month exemption on some products. Loblaw, the country’s largest grocer, is now labeling nearly 7,500 items with a “T” to indicate tariff-related price hikes, and its CEO reports that these items have seen a 20% decline in sales. This includes staples like tomato ketchup, peanut butter, jam, turkey, pasta, and oranges. Experts note that prices for fruit juice have increased by 7.5% and canned soups by 8% due to tariffs on American citrus and steel, as Canada imports most of its food packaging from the U.S.

In an unexpected reversal of a 20-year trend, clothing and footwear prices in Canada rose by 2% year-over-year in June. According to a Statistics Canada analyst, this price increase is less a result of Canada’s counter-tariffs on U.S. goods and more a symptom of the broader global trade war. U.S. tariffs on major Asian manufacturing hubs have created supply chain uncertainty, ultimately driving up costs for the Canadian apparel industry and, in turn, for consumers.

The Canadian home building industry is struggling with the rising cost of materials due to tariffs, a factor that is now delaying project deadlines. A residential developer in Ontario noted that while the total cost increase is hard to calculate, the uncertainty has forced her company to seek out local suppliers.

Some critical materials, like layered glass windows, must still be imported from the U.S. at a higher price. The impact is seen in home repair costs and broader economic data, with the CMHC reporting a significant slowdown in housing starts in provinces heavily impacted by the tariffs