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With U.S. President Donald Trump increasing tariffs on Canada to 35 per cent,<\/a> some areas of the economy could see higher costs as early as this week.<\/p>\n However, with poll data repeatedly showing<\/a> Canadian consumers have been using their loonies to \u2018Buy Canadian\u2019 amid the trade war<\/a>, how much could these latest tariff hikes<\/a> discourage shoppers?<\/p>\n \u201cThis trade war has woken up Canada. We\u2019ve been a little bit complacent, and we\u2019ve become a lot more Canadian-focused, and I think our Canadian companies are going to benefit from that,\u201d says Canadian retail analyst Bruce Winder.<\/p>\n \u201cThe question is: how long will this roll? Will things go back to normal if and when the trade war finishes?\u201d<\/p>\n Story continues below advertisement<\/p>\n \t\t\t\tWhere do things stand now?\n\t\t\t\t\t\t<\/p>\n The new tariff hike means that all Canadian goods imported into the U.S. that don\u2019t comply with the terms of the current Canada-United States-Mexico Agreement free trade agreement (CUSMA) will now have an additional import duty of 35 per cent \u2014 10 per cent higher than before.<\/p>\n Business leaders and industry experts highlight that although most products will be tariff-free under the current trade agreements, they may still feel an indirect impact.<\/p>\n \u201cWhile it is good news that most Canadian exports will remain tariff-free due to the CUSMA\/USMCA<\/a> exemption, the uncertainty alone will continue to take a toll on Canada\u2019s small businesses,\u201d said Dan Kelly, president of the Canadian Federation of Independent Business (CFIB).<\/p>\n \t\t\t\t\t \t\t\t\t\tGet breaking National news<\/p>\n For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.<\/p>\n \u201cCFIB supports the view that no deal is better than a bad deal, but the lack of resolution means small firms will not be able to plan for the future or continue to put off difficult choices. Many businesses have been holding off (on) layoffs or downsizing, hoping for a deal to be reached. Without immediate support, many small businesses will be forced to scale back operations.\u201d<\/p>\n Story continues below advertisement<\/p>\n \t\t\t\tHow will consumers feel the impact?\n\t\t\t\t\t\t<\/p>\n If industries and businesses alike are faced with higher costs, they may be forced to eventually increase prices for customers and clients to maintain profits.<\/p>\n In many cases, businesses are absorbing these higher costs<\/a> to keep prices relatively stable and hopefully maintain customer loyalty, recent data from Statistics Canada found.<\/p>\n This could mean businesses are sacrificing profits, so it may not be a sustainable long-term strategy. The concern is that it could lead to cost-cutting by way of layoffs or putting off expansion plans.<\/p>\n Many consumers have been vocal about wanting to support local businesses by actively choosing Canadian-sourced and manufactured products and services, even if that means sometimes paying higher prices, recent polling by Ipsos exclusively for Global News found.<\/p>\n The Ipsos poll<\/a> released ahead of Canada Day<\/a>, found around three-quarters of Canadians surveyed say they intend to avoid travel to the U.S. \u2014 up 10 points since February \u2014 while the number of people avoiding U.S.-made goods has risen five points to 72 per cent.<\/p>\n \n\t\tTrending Now\n\t<\/p>\n \t\t\t<\/p>\n \t\t\t\t\t\t \n\t\t\t\t\tRead Carney\u2019s full response to Trump\u2019s 35% tariff on Canada\n\t\t\t<\/p>\n \t\t\t<\/a><\/p>\n \t\t\t<\/p>\n \t\t\t\t\t\t \n\t\t\t\t\tAustralia announces YouTube account ban for children under 16\n\t\t\t<\/p>\n \t\t\t<\/a><\/p>\n Story continues below advertisement<\/p>\n When asked if they think less of the U.S. as a country because of Trump\u2019s various attacks on Canada\u2019s economy and sovereignty, 77 per cent of those polled said they agreed, with nearly half of those respondents saying they strongly agreed. That number was also up by nine points.<\/p>\n![\"For](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/07\/1753128969_722_national.jpg\")
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