Who pays for Canada's tariffs on U.S. goods? Experts break down the real cost
Canada has implemented new counter-tariffs on $27.6 billion worth of U.S. goods, including steel, aluminum, and agricultural products. Economic experts suggest that while exporters do not absorb these costs, the financial burden is often split between retailers and consumers through higher prices.
Why it matters
These trade measures highlight the ongoing economic friction between the U.S. and Canada and demonstrate how international trade policy directly impacts domestic inflation and business profitability.
U.S. President Donald Trump and Canada's Prime Minister Mark Carney attend a meeting of the North Atlantic Council (NAC) during the NATO leaders' summit in Ankara, Turkey, July 8, 2026. REUTERS/Yves Herman Canada's latest tariffs are aimed squarely at the United States. That doesn't mean Americans are the only ones footing the bill.
Ottawa's new counter-tariffs took effect Sept. 8, covering $27.6 billion worth of U.S. imports at rates of 15, 25 and 50 per cent. Steel and aluminum, dairy products, appliances, agricultural equipment, pulp and paper, plastics and electronics are among the goods targeted. Existing tariffs on U.S. autos also remain in place.
The measures are meant to match U.S. tariffs on Canadian goods. But once a tariff reaches the border, the cost can work its way through Canadian businesses, and, eventually, to shoppers.
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