trade talks broke down between Ottawa and Washington on Aug. 21<\/a>, resulting in 50 per cent tariffs on billions on Canadian goods. <\/p>\nAccording to Mang, around 1,800 U.S. products were tariffed last year, while this year it\u2019s half that number.<\/p>\n
\u201cOf those 700, 300 already have tariffs so that\u2019s not changing,\u201d he said.<\/p>\n
This time, federal officials have picked products with Canadian or international alternatives that can be sourced from other trading partners. <\/p>\n
\u201cSo, for Canadian families, the tariffs will not disadvantage us,\u201d Mang said. \u201cThere are other options we can buy.\u201d<\/p>\n
Still, he advised Canadians to stock up on any particular American items ahead of the Tuesday counter-tariff deadline. <\/p>\n
\u201cAmerican lipstick, that\u2019s going to be subject to tariffs,\u201d he said. \u201cAmerican clothing … if there\u2019s a particular brand you like and it\u2019s made in America, not overseas, then you should stock up on that ahead of the tariffs coming in.\u201d<\/p>\n
Price increases depend on how quickly inventory is turned over in stores and how long retailers can absorb the costs themselves, Mang explained.<\/p>\n
For instance, goods like cosmetics and clothing see higher inventory turnover and ergo may be impacted by price increases, while appliances may not see price increases until current stock is sold. <\/p>\n
The average price increase for tariffed items last year was six per cent, Mang said, because retailers took three-quarters of the cost onto themselves. <\/p>\n
\u201cThey saw the tariffs as being temporary,\u201d he said. \u201cRetailers figured it was just better to absorb the short-term costs than raising the prices too much, which angers their customers.\u201d<\/p>\n
\u201cThis time around, it really depends on how long the retailers expect the tariffs to last.\u201d<\/p>\n
Related Stories<\/p>\n","protected":false},"excerpt":{"rendered":"McMaster University assistant professor of economics Colin Mang joins Your Morning Vancouver to discuss how much Canada\u2019s counter-tariffs…\n","protected":false},"author":2,"featured_media":883196,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[712,45,49,48,46],"class_list":["post-883195","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-apple-news","tag-business","tag-ca","tag-canada","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/883195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=883195"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/883195\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/883196"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=883195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=883195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=883195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}