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Five things more expensive in Canada due to tariffs

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Nadine Yousif

BBC News, Toronto

Reuters woman in dark coat saw a shopping cart from above, walking through the produce section of the grocery store. She is surrounded by a bunch of brightly colored produce.Reuters

The trade war between the United States and Canada has escalated sharply, with President Donald Trump raising tariffs on Canadian imports from 25% to 35%.

Most commodities will avoid the increase in the cost of entering the U.S. market, as it is currently exempted under existing North American trade treaties. But some key products are being valued.

Earlier this year, Canada responded with an anti-competitive approach to tens of thousands of dollars worth of American products, from tomatoes to washing machines.

While it is too early to determine the full impact, experts say prices have spread across Canadians’ daily items and will continue to rise.

This is a breakdown of products that become more expensive.

Refrigerator and washing machine

Canada has counter-promoted gaskets, dryers, refrigerators and HVAC equipment made in the United States.

Andreas Schotter, professor of international business at Western University of Ontario, said it was a 50% tariff on Trump’s 50% tariff on imported metals, meaning the price of these items has risen.

For Canadians, this leads to an average increase in the average cost of refrigerators and freezers by 2%. Dishwashing and laundry appliances rose 4.5% in June from the same period last year, according to Statistics Canada.

Andrew Barclay, an analyst at Stats, said the percentages were offset by the fact that all appliances sold in Canada originated in the United States.

This means consumers can roam around to avoid paying more.

Professor Schotter said some retailers have been promoting the sale of dishwasher and heat pumps – “A old tip that the average price will be rising.”

New and used cars

U.S. tariffs have been hit hard by U.S. tariffs, especially due to how the automobile manufacturing supply chains between the two countries are intertwined.

The vehicle can cross the U.S. Canada-Mexico border eight times before it is fully assembled.

The Trump administration has imposed a 25% tariff on all cars and trucks not built in the United States. Canada should also face similar reciprocity tariffs, despite its exemptions to automakers that comply with existing NAFTAs and those that continue to make manufacturing in the country.

Automakers have also been hit by U.S. metal tariffs.

This leads to higher prices for new vehicles. Mr Barclays said costs rose by more than 5% in June compared to last year.

“We’re also seeing prices accelerate in used cars, which shows us that people may be priced for buying new cars,” he told the BBC.

Professor Schotter said people choose to keep the car longer to avoid buying new purchases, adding that it is a “cautious thing.”

Peanut butter, canned soup and other groceries

Canada’s anti-sponsors target our various foods that we produce or manufacture.

Some of these items have since been temporarily exempted from April, providing “immediate relief” to Canadian businesses relying on U.S. products.

Still, grocery shelves are seeing the impact. Canada’s largest grocer Loblaw has even started labeling it as “T” items, which have risen prices due to tariffs.

Grocers have added labels to nearly 7,500 items.

These include tomato tomato paste and other tomato paste imported from the United States, as well as pantry such as peanut butter and jam.

Türkiye, pasta and orange have all been reversed, and these costs are increasing.

Michael von Massow, a professor of agriculture at Guelph University, said juice prices rose 7.5% from last year due to opposition to U.S. citrus.

Professor Von Massow said canned soup increased by 8% during the same period due to taxes for steel and aluminum. Canada obtains most of the food packaging (such as soup cans) from the United States.

Loblaw CEO said average sales of items marked “T” fell by 20%.

Clothes and footwear

Statistics Canada’s Barclays said clothing prices rose abnormally in June.

Despite Canada’s counter-propaganda over U.S. clothing imports, he believes that higher prices are not directly related to these taxes, but rather a symptom of the ongoing global trade war.

Major manufacturing hubs like China and Vietnam have been subject to much-needed tariffs from the United States, which has exacerbated uncertainty in these sectors.

Mr Barclays said the result was a 2% increase in clothing and footwear prices since last year. He noted that this was a moderate bump, but as prices have been declining overall over the past 20 years.

“Many of these are related to the emergence of Southeast Asia and Asia’s clothing hubs, which puts pressure on prices to drop,” he said.

Housing and reconstruction costs

Canada’s housing construction department is concerned that the prices of materials it relies on will rise.

Cheryl Shindruk, an executive at a residential development company in southern Ontario, recently told Canadian media that it has been difficult to determine to what extent the cost may rise so far.

However, uncertainty has delayed the project deadline because her company hub is purchasing materials locally or elsewhere.

She said some materials (such as layered glass windows) cannot be copied in the Canadian or non-U.S. market, giving her and others no choice but to pay higher prices.

Canada also targets carpets, floors and shingles. Mr Barclays told the BBC that maintenance and repair costs for homeowners have risen slightly.

According to Statistics Canada, prices for pipelines, utilities and structural steel frames have all risen.

The Canadian Mortgage Housing Corporation (CMHC) predicted earlier this year that the ongoing U.S.-Canada trade war will slow the economy and limit housing activities, including buying, selling, selling and building.

According to the CMHC data, provinces that are subject to a larger tariff range (partly due to its important auto manufacturing industry) have seen a slowdown in housing start to drop by 8% to 26%.

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