Western Grocer Serving the industry since 1916
Retaliatory tariffs may not push grocery prices higher, but other products such as health and beauty items are set to get more expensive, according to KPMG chief economist Ali Jaffery. She says some shoppers may shy away from products that will see significant price increases, but overall, the latest round of duties is unlikely to hit most consumer items.
That’s because the federal government’s counter-tariffs have been designed to limit economic damage and the price pressures Canadians will face.
The reciprocal tariffs, ranging from 15 to 50 per cent, apply to imports from the United States on a laundry list of items, including dairy, cosmetics, clothing and textiles. Most imports targeted in the retaliatory duties are also produced in Canada, so it should be relatively easy for food wholesalers to find alternatives.
Consumers may avoid items where prices do jump, such as in the beauty products category, which could push retailers to ultimately reduce the number of U.S. products on store shelves.
