Tariff Costs May Reach Canadian Shoppers Gradually

Tariff Costs May Reach Canadian Shoppers Gradually

Canadian consumers may not see the full effect of new tariffs immediately because retailers are still selling inventory purchased before the duties took effect.

Canada imposed retaliatory tariffs ranging from 15 to 50 per cent on nearly $28 billion in American products. The affected goods include clothing, carpets and electronics.

Retail Council of Canada representative Matt Poirier said stores must work through existing stock before newly tariffed shipments reach shelves.

Products with short shelf lives or rapid turnover could increase in price first. Appliances and other durable goods may take longer because retailers replace that inventory less frequently.

Some businesses could temporarily absorb part of the added cost through smaller profit margins. Shoppers may first notice fewer promotions, reduced selection or more Canadian and overseas alternatives replacing American products.

The United States has announced further restrictions on certain Canadian goods beginning September 29, adding more uncertainty for exporters and retailers.