President Donald Trump has announced new 50% tariffs on Canadian imports, escalating trade tensions between the United States and Canada.
The tariffs, which were scheduled to take effect Aug. 19, target a wide range of products. The Trump administration said the move was intended to respond to what it calls Canada’s unfair treatment of American exports and to protect U.S. industries. Canada has criticized the tariffs, saying they violate the U.S.-Mexico-Canada Agreement, while trade experts warn the move could increase costs for businesses and consumers on both sides of the border.
Here’s what it means for Arizona shoppers.
What are tariffs?
For consumers, tariffs don’t mean Canada pays the extra cost. Instead, the tariff is generally paid by the U.S. importer, which can then pass some or all of the added expense on to shoppers through higher prices.
That means Americans could eventually pay more for some imported goods, particularly if businesses are unable to absorb the additional costs. How much prices rise will depend on whether companies switch suppliers, negotiate lower prices or choose to increase retail prices.
In Arizona, the impact could be felt through higher prices on products made with Canadian materials or imported from Canada, including some building supplies, specialty foods, dairy products and alcoholic beverages.
Businesses that rely on Canadian imports could also face higher operating costs, while consumers may notice price increases over time if those costs are passed along. Economists say the overall effect will depend on how long the tariffs remain in place, whether Canada retaliates with additional trade measures and whether businesses adjust their supply chains.
Prices on these items from Canada could increase
The following common imports from Canada to the U.S., according to the Bureau of Industry and Security and Trading Economics, could be affected by Trump’s tariffs:
- Wood
- Charcoal
- Aluminum
- Iron and steel appliances
- Cereal, flour, starch and milk products
- Rubbers
- Alcoholic beverages
- Carpets and other textile floor coverings
- Wool, animal hair, horsehair yarn and fabric
- Umbrellas, walking sticks, seat sticks, whips
- Cotton
- Photographic or cinematographic goods
- Cork products
- Printed books
Reporting by Tiffany Acosta, Arizona Republic
