From oranges to booze, here’s where a trade war with the U.S. will hurt Canadians in their wallets

The trade war between the United States and Canada has escalated in recent weeks, with both countries imposing tariffs on each other’s goods. President Donald Trump announced a 25 per cent tariff on virtually all Canadian goods and a 10 per cent tariff on Canadian energy, prompting Canada to retaliate with a 25 per cent tariff on $30 billion worth of American goods.

The repercussions of these tariffs have been felt across Canada, with many people boycotting U.S. products and advocating for buying Canadian. Social media has seen a surge in “Buy Canadian” groups, with hundreds of thousands of new followers. Several provinces have even removed U.S. booze from liquor store shelves in response to the tariffs.

Despite a 30-day pause agreed upon by Trump and Prime Minister Justin Trudeau, analysts warn that the trade war is far from over. The threats of tariffs and counter-tariffs have exposed economic vulnerabilities, with both countries set to experience increased costs and reduced consumer choices.

Canada is heavily reliant on U.S. goods, with the U.S. being the largest export destination for Canadian products. The imposition of tariffs and counter-tariffs will raise prices and impact various sectors, particularly the retail industry. Grocery items are expected to be hit hard, as many products like fresh produce, meat, dairy, and grains are imported from the United States.

The Canadian energy sector, while less vulnerable due to the U.S.’s reliance on Canadian oil, will still face challenges. The retail sector, particularly grocery items, is expected to be most affected by the tariffs. Consumers may see price increases on products like fresh fruits and vegetables, orange juice, grains, and baked goods.

Alcohol has also been a focal point of the trade war, with both countries targeting wine, beer, and spirits in their tariffs. Canadian provinces have removed American-made liquor from shelves, and prices for popular brands like Jack Daniel’s and Crown Royal are expected to rise.

In addition to food and alcohol, cosmetics, toiletries, and clothing items are also included in Canada’s proposed counter-tariffs. The beauty industry, in particular, relies heavily on U.S. imports, and any increase in tariffs could lead to price hikes for consumers. Similarly, the textile and clothing industry would be impacted, with Canadian alternatives becoming more expensive due to increased demand.

Overall, the trade war between the U.S. and Canada has highlighted the complexities of their intertwined economies. While buying Canadian is an attractive option, the reality is that both countries rely heavily on each other for goods and services. As tariffs and counter-tariffs continue to be imposed, consumers on both sides of the border can expect to see higher prices and reduced choices in the coming months.