Consumers could benefit from dropped tariffs on U.S. goods, but unions raise concerns
Canada Drops Retaliatory Tariffs on U.S. Goods, Consumers to Benefit
OTTAWA — Canada’s decision to eliminate some retaliatory tariffs on American products could result in lower prices for consumers, although union leaders are concerned about its impact on trade negotiations.
Consumer Impact
According to Colin Mang, an assistant professor of economics at McMaster University, consumers and retailers importing American goods, such as Loblaws, Metro, and Sobeys, will benefit the most from this move. Prices for items like orange juice, spices, nuts, and baked goods are expected to decrease, providing relief for shoppers.
Retailer Response
Mang noted that the extent of price reductions at the retail level will depend on how businesses choose to adjust their pricing strategies. While some retailers may pass on the tariff savings to consumers, others could opt to retain higher prices to maximize profits.
Trade Talks and Business Impact
Prime Minister Mark Carney emphasized that Canada will maintain tariffs on steel, aluminum, and autos as discussions with the U.S. continue. The Canadian Federation of Independent Business welcomed the tariff reductions, stating that they will alleviate pressure on small businesses during ongoing trade negotiations.
Union Concerns
However, unions like Unifor and the Canadian Labour Congress expressed reservations about Canada’s decision to eliminate retaliatory tariffs. They believe that conceding to the U.S. without complete tariff removal could harm Canadian workers and industries.
Future Outlook
As Canada navigates trade complexities, stakeholders urge the government to prioritize the interests of workers, businesses, and consumers. Balancing economic considerations and strategic industry protection will be crucial in shaping the country’s trade policies moving forward.
This revised article offers a snapshot of Canada’s recent tariff adjustments and the diverse perspectives surrounding this development. Stay tuned for further updates on trade relations between Canada and the United States.
Original report by The Canadian Press, August 22, 2025.
Written by Catherine Morrison, The Canadian Press
