Canada’s counter-tariffs take effect today. Here’s what could cost you more

The measures target hundreds of products across sectors including steel and aluminum, dairy, appliances, agricultural equipment, pulp and paper, plastics and electronics. According to the federal government, tariffs will range from 15 to 50 per cent, depending on the product. Some existing tariffs will also increase to match the rate imposed by the United States.

Though some goods will be subject to high tariffs that will likely make them more expensive, that doesn’t necessarily mean prices will increase by the same amount. Economists and tariff experts told the Star the cost will depend on how much of the tariff businesses absorb and how much they pass on to consumers.

The Bank of Canada studied the effect of Canada’s previous round of counter-tariffs and found prices for affected products rose gradually after the tariffs took effect in March 2025. By mid-June, those products were about six per cent more expensive than comparable products that weren’t subject to tariffs — roughly one-quarter of the 25 per cent tariff.

The bank also found prices fell back toward their previous levels relatively quickly after most of those tariffs were removed. So while tariffs can push up prices, a 25 or 50 per cent tariff does not necessarily translate into the same increase at the cash register.

Here’s what consumers need to know:

Groceries

Signal49 Research chief economist Pedro Antunes said tariffs on imported food products could add to costs, although domestic producers and other sources of supply could limit the impact.

Most food Canadians buy is produced domestically or imported from countries other than the United States, according to Statistics Canada. However, a University of British Columbia study found nearly half of the vegetables consumed in Canada, excluding potatoes, are imported, while roughly 75 per cent of fruit is imported.

Dairy is among the sectors targeted by the new counter-tariffs, including milk, cream and cheese. Antunes said there could be an adjustment cost, but Canada has lots of dairy manufacturing, and products could be imported from other trade partners.

Even when an American product is affected, retailers may be able to substitute products from Canadian or other suppliers. Antunes told the Star those alternatives could limit the effect on consumers, although reduced choice could also put upward pressure on prices. Consumers may therefore notice changes in particular products rather than an across-the-board jump in grocery costs.

Fish and seafood appeared on the initial list announced by the federal government, but the updated list for Tuesday’s measures is the one consumers and businesses should rely on. The government’s current list contains some fish-related products already subject to earlier measures, but does not impose the broad new seafood tariff that appeared in the original announcement.

Beauty and personal care

Shampoo and conditioner could be among the personal-care products to see noticeable price increases. Joseph Steinberg, an economics professor at the University of Toronto, expects U.S.-made hair products to see “double-digit price increases” as retailers grapple with the added cost of retaliatory tariffs.

Shampoo and conditioner are not named explicitly on Canada’s tariff list, but “preparations for use on the hair” are subject to a 50 per cent tariff.

Other beauty products are also facing the highest tariff rate, with products for the lips, eyes, manicures and pedicures subject to a 50 per cent tariff. The category also includes sunscreen and suntanning preparations.

Steinberg said he expects the higher costs to have an “interesting gender impact,” with women disproportionately affected by increases in personal-care and beauty products. Consumers looking to avoid the tariffs can look for Canadian-made products or alternatives sourced from Europe or Asia, where available.

Appliances and furniture

For anyone planning a major appliance purchase, the new tariffs add another potential source of upward pressure.

The updated tariff list includes household appliances such as refrigerators, dishwashers and freezers, with many subject to a 25 per cent tariff. University of Toronto operations management professor Andre Cire told the Star those appliances could become more expensive as businesses adjust to higher costs.

The tariff is charged when a covered product enters Canada. Importers and retailers can then decide how much of that cost to absorb or pass on to consumers. Cire said it remains to be seen how much will ultimately be passed on.

The increases also come with an important caveat: it’s the product’s origin that matters, not simply the brand name. A product made by an American company is not necessarily U.S.-origin, while a product made in the United States can be subject to the tariff even if its manufacturer is based elsewhere.

Furniture is another category that could hit household budgets, particularly for people planning a move, renovation or major purchase.

The tariff list covers a broad range of furniture, including wooden kitchen and bedroom furniture, domestic furniture and metal furniture. The Star’s previous reporting found furniture among the products that could become more expensive, with tariff experts warning that higher import costs could work their way through to consumers. Because furniture can be expensive, even a modest percentage increase can add up quickly.

Clothing and apparel

Clothing and footwear are also among the consumer goods Canadians should watch, with specific U.S.-origin products appearing on the tariff list.

Some products facing tariffs may be less obvious. Golf clubs, for example, are among the U.S. consumer goods targeted by the measures, meaning golfers shopping for new equipment could face higher prices if they buy an affected U.S.-origin product.

With files from Lora Grady and Sadeen Mohsen.