Economists predict that most grocery items in Canada will likely not see a significant price increase despite the ongoing tariff dispute with the U.S. The latest U.S. counter-tariffs are mainly targeting raw materials and inputs rather than end products that consumers purchase directly from stores.
While categories like dairy, cosmetics, and health and beauty products are facing tariffs as high as 50%, consumers may not feel a major impact if they opt for alternative products. Edmond Matar, a debt service advisor, noted that if consumers switch to Canadian-made goods, the impact of the tariffs could be minimal, leading retailers to explore more domestic options.
The extent to which any increased costs will be passed on to shoppers depends on various factors in the supply chain, as Matar explained. It remains uncertain whether American producers, Canadian importers, retailers, or consumers themselves will bear the brunt of the tariffs, with market forces of supply and demand ultimately determining the outcome.
