Canadian counter-tariffs unlikely to raise most grocery bills, economists say

Canada’s retaliatory tariffs on U.S. imports are unlikely to push up most grocery bills, though some products, including health and beauty items, could become more expensive, economists say.

KPMG chief economist Ali Jaffery said shoppers may avoid products that face substantial price increases, but the latest duties are unlikely to affect most consumer goods. He said the federal government designed the counter-tariffs to limit economic damage and price pressure for Canadians.

The tariffs range from 15 to 50 per cent and cover a list of U.S. imports that includes dairy, cosmetics, clothing and textiles. Desjardins principal economist Florence Jean-Jacobs said many targeted imports are also made in Canada, making it relatively easy for food wholesalers to find alternatives.

Jean-Jacobs said consumers may also turn away from goods whose prices rise, including beauty products. That response could eventually lead retailers to reduce the number of U.S. products on their shelves.