Canada’s Counter-Tariffs Take Effect: What Could Cost You More

Canada’s counter-tariffs officially kicked in just after midnight on Tuesday, targeting $27.6 billion worth of American goods. The federal government confirms these measures now apply to more than 700 U.S. product lines. As a result, everyday shoppers across the country may notice price changes in the weeks ahead.

These new Canada’s counter-tariffs cover a wide range of sectors, including steel, aluminum, dairy, appliances, agricultural equipment, pulp and paper, plastics, and electronics. Depending on the product category, tariff rates range from 15 to 50 per cent. Meanwhile, some existing tariffs will also rise to match the rate the United States originally imposed.

Will Prices Actually Jump Right Away?

Although certain goods now face steep tariffs, that doesn’t automatically mean prices will spike by the same percentage. Economists and tariff experts explain that the real cost depends on how much businesses absorb versus how much gets passed along to consumers. Therefore, the impact will likely vary from product to product.

For context, the Bank of Canada studied the effects of the country’s previous round of counter-tariffs. Prices for affected products rose gradually after those tariffs took effect in March 2025. By mid-June, those goods were about six per cent more expensive than similar products that weren’t tariffed — roughly one-quarter of the original 25 per cent tariff.

Interestingly, the Bank also found that prices fell back toward previous levels fairly quickly once most tariffs were removed. In other words, a 25 or 50 per cent tariff doesn’t necessarily translate into an equivalent jump at checkout. Consequently, shoppers may see smaller, more gradual changes rather than sudden price hikes.

Groceries and Dairy: What to Expect

According to Signal49 Research chief economist Pedro Antunes, tariffs on imported food products could add to overall costs. However, domestic producers and alternative supply sources may help limit that impact. Most food Canadians buy is either produced domestically or imported from countries other than the U.S., based on Statistics Canada data.

That said, a University of British Columbia study found that nearly half of the vegetables Canadians consume, excluding potatoes, come from imports. Additionally, roughly 75 per cent of fruit sold in Canada is imported. So while overall grocery costs may stay relatively stable, specific produce items could see noticeable price shifts.

Dairy products, including milk, cream, and cheese, also fall under the new Canada’s counter-tariffs. Antunes noted there could be some adjustment costs. Still, since Canada has substantial dairy manufacturing capacity, retailers can likely source products from other trade partners instead.

Even when an American product faces tariffs, retailers often substitute it with Canadian or internationally sourced alternatives. Antunes explained that this flexibility could soften the blow for consumers, though reduced choice might still create some upward price pressure. As a result, shoppers may notice changes in specific items rather than an across-the-board grocery bill increase.

Fish and seafood initially appeared on the government’s original tariff list. However, the updated list released for Tuesday’s measures is the one businesses and consumers should actually follow. While some fish-related products remain subject to earlier tariff measures, the broad new seafood tariff mentioned in the initial announcement did not make the final cut.

Beauty and Personal Care Products Face Steep Increases

Shampoo and conditioner could see some of the most noticeable price jumps under the new rules. Joseph Steinberg, an economics professor at the University of Toronto, expects U.S.-made hair products to face what he calls “double-digit price increases.” This is largely because retailers must absorb the added cost of retaliatory tariffs.

Although shampoo and conditioner aren’t named explicitly on Canada’s tariff list, “preparations for use on the hair” fall under a 50 per cent tariff. Similarly, other beauty essentials — including lip, eye, manicure, and pedicure products — face that same top rate. Sunscreen and suntanning preparations are included in this category as well.

Steinberg also pointed out an “interesting gender impact” tied to these changes. Since women tend to purchase personal-care and beauty products more frequently, they may feel the financial pinch more than other consumers. For those hoping to dodge the added costs, Canadian-made alternatives or products sourced from Europe and Asia could offer some relief.

The Bottom Line

Ultimately, Canada’s counter-tariffs won’t affect every product the same way. Instead, the real-world impact will depend on supply chains, domestic alternatives, and how much cost businesses choose to pass on. For now, shoppers should keep an eye on grocery aisles and beauty counters, where the earliest price shifts are likely to appear.