The upcoming counter-tariffs on U.S. products will hurt Canadians less than the last time, one expert says.
Coling Mang, an economist at McMaster University told CTV Your Morning on Friday that the federal government has been more prudent with which United States goods to tariff this time.
On Aug. 22, Prime Minister Mark Carney announced dollar-for-dollar counter-tariffs on about 700 U.S. imports worth $27.6 billion, to come into effect at 12:01 a.m. on Sept. 8.
The announcement came after trade talks broke down between Ottawa and Washington on Aug. 21, resulting in 50 per cent tariffs on billions on Canadian goods.
According to Mang, around 1,800 U.S. products were tariffed last year, while this year it’s half that number.
“Of those 700, 300 already have tariffs so that’s not changing,” he said.
This time, federal officials have picked products with Canadian or international alternatives that can be sourced from other trading partners.
“So, for Canadian families, the tariffs will not disadvantage us,” Mang said. “There are other options we can buy.”
Still, he advised Canadians to stock up on any particular American items ahead of the Tuesday counter-tariff deadline.
“American lipstick, that’s going to be subject to tariffs,” he said. “American clothing ... if there’s a particular brand you like and it’s made in America, not overseas, then you should stock up on that ahead of the tariffs coming in.”
Price increases depend on how quickly inventory is turned over in stores and how long retailers can absorb the costs themselves, Mang explained.
For instance, goods like cosmetics and clothing see higher inventory turnover and ergo may be impacted by price increases, while appliances may not see price increases until current stock is sold.
The average price increase for tariffed items last year was six per cent, Mang said, because retailers took three-quarters of the cost onto themselves.
“They saw the tariffs as being temporary,” he said. “Retailers figured it was just better to absorb the short-term costs than raising the prices too much, which angers their customers.”
“This time around, it really depends on how long the retailers expect the tariffs to last.”
