Trump’s new 50% tariffs on some Canadian goods have taken effect, which could make several products more expensive for Americans. The tariffs started at 12:01 a.m. Saturday after US-Canada trade talks broke down.
The Trump administration had threatened the 50% tariffs on a wide range of Canadian products. The latest 50% tariffs cover about $20 billion worth of Canadian exports to the US, according to administration officials. John Ricco, deputy director of policy analysis at the Yale Budget Lab, estimated that the new measures would push the average tariff rate on Canadian imports to about 7.6%, from roughly 5.3%, according to the New York Times.
Trump first announced the new tariffs last month, saying they were needed to “offset Canadian discrimination”, according to Business Insider. US consumers could feel the impact through higher prices if American companies pass the higher import costs on to shoppers. US importers can also end up paying more While foreign exporters may absorb some of the cost. Those higher costs can then be passed on to American businesses and consumers through higher prices. Brusuelas warned that this could create new inflation risks at a time when US manufacturing is already struggling.
Earlier reporting noted: Tariffs are essentially taxes placed on imported goods. Earlier reporting noted: The limited size of the tariffs means the immediate impact on the overall US economy may be relatively small. Earlier reporting noted: Higher costs could eventually put more pressure on prices.
Trump first imposed new tariffs on Canadian goods in early 2025, and Canada responded with tariffs on US products. Canadian Prime Minister Mark Carney announced dollar-for-dollar counter-tariffs on American imports, according to Business Insider.
Canadian hockey brands including Bauer Hockey, CCM Hockey and Sherwood could be affected, but not every product from these companies will necessarily face the tariff, according to Business Insider. Hockey equipment is also on the affected list, including hockey sticks and gloves. This could matter for American consumers who buy Canadian-made hockey gear. Honey imported from Canada could also be affected, potentially increasing the cost of some Canadian honey products for US shoppers. Clothing is included in the tariff list, meaning some Canadian-made clothes could cost more in the US if importers pass the additional cost to consumers. Plants are also covered by the tariffs, so some Canadian plants and related products imported into the US could see higher prices. The tariff list is much larger than just alcohol, dairy and hockey equipment. It also covers products across areas such as agriculture, clothing, construction, electronics and other consumer goods. Canada is responding with its own tariffs on US products . The latest move is part of a larger trade dispute between the US and Canada. The latest round means American shoppers could see higher prices on a wide range of Canadian goods, especially if businesses pass the added tariff costs down to consumers.
