Tariffs are government-imposed taxes on imported goods, collected by the Canada Border Services Agency (CBSA). While importers are responsible for paying these charges upfront, the cost is typically passed down to Canadian consumers through higher retail prices.
Export tariffs also pose challenges for Canadian businesses. When foreign governments raise duties on Canadian goods, it becomes more expensive for global buyers to purchase Canadian products. This can reduce sales and force companies to scale back production or even cut jobs.
How tariffs impact Canadian consumers
Tariffs apply to the “landed cost” of goods — the price before retail markup. For example, a $100 item with a 10% tariff results in an additional $10 cost for the importer, much of which is usually carried over to the customer. Studies have shown that pass-through costs are especially high in food retail compared to other goods.
What consumers can do
Track tariff schedules: The Canada Tariff Finder helps identify whether tariffs are set to rise or fall.
Compare product sources: Choosing items from countries with lower tariff rates can help keep costs down.
Plan smarter budgets: Add a small buffer in household spending, shop wholesale, use coupons, and rely on loyalty programs to offset tariff-driven increases.
Staying ahead of changes
The Canada Tariff Finder also allows users to search by product name or HS code, compare up to three countries, and view scheduled rate changes. For families, creating a list of frequently purchased items with their tariff rates can make it easier to anticipate cost shifts.
Bottom line
While tariff changes are largely outside the control of everyday Canadians, preparing for them is possible. Monitoring rates, adjusting shopping habits, and budgeting strategically can help households reduce the financial impact of rising costs.
Note to readers: This article draws on insights from Canadian personal finance expert Christopher Liew, CFP®, CFA Charterholder and former financial advisor, who writes widely on consumer finance and trade policy.
