New tariffs could mean Canadian prices on the rise
Posted July 3, 2018 8:06 pm.
This article is more than 5 years old.
Buying local could save you money in the short-term as Canadian tariffs on American products are implemented, but it could end up costing you more in the long run, one expert told CityNews.
Counter-tariffs on a range of products took effect on Sunday – a month after the Trump administration slapped duties on U.S. steel and aluminum imports from Canada and other allies.
Canada’s response includes imposing $16.6 billion worth of tariffs on a long list of consumer products that come from a wide range of sectors – from beer kegs, to ballpoint pens, to ketchup.
David Soberman, a professor of Marketing at Rotman School said Canadian companies could respond to the trade war by hiking their own prices.
“You might see it on something like yogurt, on something like ice cream because specific tariffs are placed on certain dairy products coming in from the US,” said David Soberman, a professor of marketing at Rotman School of Management.
He says if consumers are buying the American product at a higher price, the Canadian brand could see an opportunity to increase their prices as well.
In order to avoid the high prices on your grocery bill, experts say to shop around.
While American prices could go up first, there’s always competition and equivalent lower price brands can be found.
