The ongoing trade dispute between Canada and the United States is expected to result in increased costs for consumers and businesses, affecting a wide range of products like cellphones, gaming consoles, and artificial intelligence infrastructure.
Last year, Canada exported over $4 billion US worth of electronics equipment to the U.S., which is now subject to the new 50 per cent tariffs imposed by U.S. President Donald Trump. Among the goods targeted by the tariffs are certain electrical boards and controllers, representing a significant portion of Canada’s exports to the U.S.
In response, Prime Minister Mark Carney announced that Canada would match the U.S. tariffs on a dollar-for-dollar basis.
Industry experts warn that the escalating trade tensions will inevitably lead to higher prices, impacting businesses on both sides of the border.
Carol McGlogan, the president and CEO of Electro-Federation Canada, expressed concern over the devastating impact of the 50 per cent tariffs on the industry. She highlighted that 90 per cent of their exports go to the U.S., and the increased pricing will have a ripple effect on various sectors such as housing, education, and infrastructure.
According to Evan Light, an associate professor at the University of Toronto, factors like chip shortages and supply chain disruptions have already been causing price hikes in products like gaming consoles and cellphones. The intensification of the trade war is expected to further elevate the prices of these items.
Traffic to Canadian e-commerce marketplace Common Goods has surged 300 per cent since Canada-U.S. trade talks broke down, according to owner Valerie Crisp. She says the response shows continued interest in buying Canadian, even as consumers navigate the complexities of the new tariffs.
Andrew Bell, the chief product officer at Ottawa-based Kinaxis, noted that many companies are already exploring new supply chain options in response to the tariffs. He emphasized that while the tariffs may impact supply chains initially, the ultimate burden of increased costs falls on consumers.
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