BoC report estimates U.S. counter-tariffs pushed prices up about 6% last year
Researchers said tariff labels reduced customer backlash and let retailers pass along nearly a quarter of the added costs by mid-June 2025.
- On Monday, the Bank of Canada released a report finding that prices on goods affected by Ottawa's counter-tariffs against the United States last year were roughly 6% higher than non-tariffed products.
- Ottawa imposed 25% tariffs on grocery items, clothing, and household staples starting in March 2025 as retaliation against President Donald Trump's initial tariff campaign.
- Researchers compared costs of more than 100,000 goods at seven retailers and found that in-store tariff banners helped businesses pass costs to consumers while skirting customer backlash.
- The price boost added about 0.3 percent to headline inflation last year, though costs fell back to normal three months after the government removed most counter-tariffs in September.
- Retailers adjusted prices based on expectations of how long trade disputes would last; firms absorbed costs when tariffs were expected short-lived but passed them on when anticipating longer battles.
17 Articles
17 Articles
Counter-tariffs imposed by Ottawa on certain U.S. products, for a few months in 2025, would have slightly increased in-store prices.
According to Bank of Canada analysts, the prices of products subject to the tariff countermeasures imposed by Ottawa in the United States last year were on average about 6% higher than those of products not subject to these duties.
Winnipeg Free Press
BoC report estimates U.S. counter-tariffs pushed prices up about 6% last year
OTTAWA - Analysts at the Bank of Canada say prices on goods affected by Ottawa's counter-tariffs against the United States last year were roughly six per cent higher on average than non-tariffed goods.
BoC report estimates U.S. counter-tariffs pushed prices up around 6% last year
Analysts at the Bank of Canada say prices on goods affected by Ottawa’s counter-tariffs against the United States last year were roughly six per cent higher on average than non-tariffed goods. The federal government imposed tariffs of 25 per cent on a variety of grocery items, clothing and other household staples coming from the United States for about six months starting in March 2025 as retaliation to U.S. President Donald Trump’s initial tari…
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