{"id":96721,"date":"2025-08-25T20:52:11","date_gmt":"2025-08-25T20:52:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/96721\/"},"modified":"2025-08-25T20:52:11","modified_gmt":"2025-08-25T20:52:11","slug":"when-could-prices-start-dropping-as-canada-axes-u-s-counter-tariffs-national","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/96721\/","title":{"rendered":"When could prices start dropping as Canada axes U.S. counter-tariffs? – National"},"content":{"rendered":"

With most of Canada\u2019s retaliatory tariffs on goods from the United States<\/a> set to be removed on Sept. 1, many Canadians may be hoping for some relief on prices that went up as a result of the measures.<\/p>\n

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But experts are cautioning that the impact may not be instant.<\/p>\n

\u201cIt\u2019s certainly welcome news. For us, the retailers and the retail industry, and by extension, the Canadian consumer who\u2019s been seeing the cost of this tariff war over the last few months,\u201d said Matt Poirier, vice-president of the Retail Council of Canada.<\/p>\n

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tNew chapter in trade dispute with U.S. as Canada drops retaliatory tariffs\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n

In theory, removing counter-tariffs should mean that prices that increased due to tariffs will begin to climb down, he said.<\/p>\n

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\u201cThe question is, how long will that take? It\u2019s complicated, and it\u2019s going to depend on the good itself,\u201d Poirier said.<\/p>\n

How soon a product comes down in price \u2014 and whether it will at all \u2014 depends on several factors.<\/p>\n

\u201cIf they (retailers) had to buy goods during the tariff period at a higher price, then they\u2019re going to have to pass that through until they can start buying those goods again at the lower price,\u201d he said.<\/p>\n

With most grocery products being perishable and harder to stock, experts say the first place Canadians can see prices come down could be in the produce aisle.<\/p>\n

\u201cIt is going to have an impact on food prices, but it\u2019s going to have an impact on very specific food prices,\u201d said Mike von Massow, food economist at the University of Guelph.<\/p>\n

However, he said any drop in prices may not be very significant.<\/p>\n

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\u201cThe tariffs were selected quite carefully to minimize the impact on Canadian consumers. That means that when they\u2019re removed, there won\u2019t be a significant impact on Canadian consumers on the reverse side of it,\u201d he said.<\/p>\n

\t\t\t\tWhich items had counter-tariffs?\n\t\t\t\t\t\t<\/p>\n

One of the first products that Canadians could see get cheaper is Florida orange juice.<\/p>\n

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\u201cThose prices should come down relatively quickly because orange juice is a perishable product,\u201d von Massow said.<\/p>\n

Other products with longer shelf life, such as American pickles or sugar, will take a lot longer to get cheaper, he said.<\/p>\n

\u201cWe put tariffs on U.S. sugar, so we should see the prices of those sugar products, like candy, that contain sugar that went up in price come down. Those will probably come down a little less quickly than orange juice, because it\u2019s not a perishable product,\u201d von Massow said.<\/p>\n

Canada\u2019s major grocers are expecting food prices to start decreasing in the coming days, but warn that it may take longer than some want.<\/p>\n

\u201cIn the days ahead, the price of goods in all grocery stores impacted by tariffs will start to come down. Prices will come down over time, as we sell-through inventory that was purchased based on tariffed pricing,\u201d Loblaw said in a statement on its website.<\/p>\n

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The big-box grocer uses a \u2018T\u2019 symbol on its shelves to indicate whether a product\u2019s price has been affected by Canadian tariffs on U.S. goods. Loblaw said the symbol \u201cwill remain as long as the price of that item is impacted (by) tariffs.\u201d<\/p>\n

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The grocer will also continue marking Canadian-produced goods with a maple leaf symbol.<\/p>\n

\u201cGrocers have gotten a lot of heat in the last four years about what\u2019s happened with food prices. I think they\u2019re trying to get ahead of the story and say, here\u2019s what\u2019s going to happen. Yes, we\u2019ve got prices coming down, but it might take a little bit for the inventory to come through,\u201d von Massow said.<\/p>\n

Other goods, such as electronics, stationery, sporting goods and apparel, will take several weeks, if not months, to become cheaper, Poirier said.<\/p>\n

\u201cIt\u2019s going to be hard because a lot of those purchases have already been made (by retailers),\u201d he said.<\/p>\n

\u201cIt\u2019ll depend on the good. It could be as soon as in the next few days or weeks, and it might be still months out. It\u2019ll all depend on that good and those supply chains,\u201d he said, adding that the more complex a supply chain, the more time it\u2019ll take to get cheaper.<\/p>\n

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSmart strategy or giving in? Canada drops some retaliatory tariffs against the U.S.\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n

One such product is coffee, von Massow said. If U.S. tariffs on Brazil end up raising coffee prices for Americans, it could have a ripple effect on Canadians.<\/p>\n

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\u201cThe U.S. doesn\u2019t produce any coffee but some of our smaller roasters are buying through U. S. brokers. Inventory could make some difference depending on how much Canadian roasters have on hand,\u201d he said.<\/p>\n

Canadian duties on U.S. steel, aluminum and automobiles remain in place, with car prices expected to remain elevated. The cost of used cars, too, is expected to rise.<\/p>\n

According to a monthly car pricing report by used car trade platform Clutch, the average used vehicle in Canada now costs $33,614, nearly six per cent more than this time last year, with trucks seeing the sharpest squeeze, as only 16 per cent remain under $30,000.<\/p>\n

\u201cWith auto tariffs still in place, those price pressures are unlikely to ease,\u201d Clutch said in a statement.<\/p>\n

\n\t\t\tMore on Canada
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\n\t\t&copy 2025 Global News, a division of Corus Entertainment Inc.\t<\/p>\n","protected":false},"excerpt":{"rendered":"With most of Canada\u2019s retaliatory tariffs on goods from the United States set to be removed on Sept.…\n","protected":false},"author":2,"featured_media":96722,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,1849,8334,46,15634],"class_list":{"0":"post-96721","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-consumer","12":"tag-donald-trump-tariffs","13":"tag-economy","14":"tag-retaliatory-tariffs"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/96721","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=96721"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/96721\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/96722"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=96721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=96721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=96721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}