Muhammad Amanullah | September 8, 2026
TORONTO: Canadian businesses opened their doors on Tuesday under a new trade environment after the federal government imposed fresh “dollar-for-dollar” retaliatory tariffs on US imports, raising concerns about higher operating costs and potential supply-chain disruptions.
Economists, however, say most consumers are unlikely to feel a significant impact on their daily lives immediately.
New tariffs take effect
The federal government has imposed new retaliatory tariffs on approximately $28 billion worth of US products, with the measures taking effect at 12:01 a.m. Tuesday.
The new tariffs cover around 700 US products, with duties ranging from 15 to 50 per cent.
The affected goods include essential products such as steel and aluminium, as well as toilet paper, other household products and specific items such as coin-operated arcade games.
Move comes in response to US tariffs
Canada’s latest retaliatory measures were introduced in response to a 50 per cent tariff imposed by US President Donald Trump’s administration on Canadian products on August 22.
The US measures affected hundreds of Canadian products, including plywood, cement, wine and hockey sticks. The total value of the affected Canadian goods was estimated at more than $28 billion.
Small businesses under pressure
Dan Kelly, president of the Canadian Federation of Independent Business (CFIB), said the latest phase of the trade war had placed significant pressure on small and medium-sized businesses across the country.
The organisation represents more than 100,000 small and medium-sized businesses, and Kelly said many owners felt their companies were becoming the “sacrificial lambs” in the escalating trade dispute.
He said earlier rounds of tariffs had disproportionately affected sectors involving major goods and automobiles, while the latest measures were placing a more direct burden on small and medium-sized businesses.
Furniture company among those affected
JS Furniture, a Manitoba-based company that sells furniture and household products, is among the businesses affected by the new tariffs.
General manager Brian Kaye said US-made products account for approximately 60 per cent of the company’s sales volume.
He said laminate-style bedroom furniture was expected to face particularly significant tariff pressures.
Large furniture items such as dressers, chests and drawers could face tariffs of up to 50 per cent, while smaller products including headboards, footboard rails, nightstands and mirrors could be subject to tariffs of around 25 per cent.
Prices may not rise immediately
Kaye said the company was initially trying to absorb the additional costs itself while negotiating better arrangements with US manufacturers.
He said some customers had purchased products a month earlier and were still waiting for their deliveries, adding that the company did not want to suddenly ask those customers to pay additional amounts.
However, he acknowledged that businesses could not absorb higher costs indefinitely and said price increases could become unavoidable if the tariffs remained in place for an extended period.
Limited immediate impact on consumers
Colin Mang, an economics professor at McMaster University, said last year’s experience showed that retailers absorbed roughly 75 per cent of tariff-related costs, while only about one-quarter of the burden was passed on to consumers.
He said the impact on prices this time would depend largely on how long businesses expected the new tariffs to remain in place.
If companies believed the measures were temporary, they might choose to absorb the additional costs rather than raise prices. But doing so could put significant pressure on profit margins.
Bank of Canada weighs in
Bank of Canada Governor Tiff Macklem has also said that the Canadian and US retaliatory tariffs would increase costs for some businesses, although the measures had been imposed on a relatively limited range of products.
Economists say this is one reason most Canadians are unlikely to see an immediate and widespread change in their daily lives.
Consumers who regularly purchase specific US-made products, however, could face higher prices in the future if businesses begin passing the additional tariff costs on to customers.
Expansion plans put on hold
The renewed trade dispute has also prompted JS Furniture to put plans for opening additional stores on hold.
The company employs around 35 people, who are also being affected by cautious consumer spending, particularly sales staff whose income is partly dependent on commissions.
Business groups warn that if consumers continue to avoid major purchases because of inflation and economic uncertainty, the consequences could extend beyond higher prices.
Employment, business expansion and corporate profits could also come under pressure if the trade dispute continues and companies remain uncertain about future costs.
The latest tariff measures therefore present another challenge for Canadian businesses already dealing with higher expenses and an uncertain economic environment.
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Canada Imposes New Retaliatory Tariffs on US Products as Businesses Face Rising Costs
By Muhammad Amanullah | September 8, 2026
TORONTO: Canadian businesses opened their doors on Tuesday under a new trade environment after the federal government imposed fresh “dollar-for-dollar” retaliatory tariffs on US imports, raising concerns about higher operating costs and potential supply-chain disruptions.
Economists, however, say most consumers are unlikely to feel a significant impact on their daily lives immediately.
New tariffs take effect
The federal government has imposed new retaliatory tariffs on approximately $28 billion worth of US products, with the measures taking effect at 12:01 a.m. Tuesday.
The new tariffs cover around 700 US products, with duties ranging from 15 to 50 per cent.
The affected goods include essential products such as steel and aluminium, as well as toilet paper, other household products and specific items such as coin-operated arcade games.
Move comes in response to US tariffs
Canada’s latest retaliatory measures were introduced in response to a 50 per cent tariff imposed by US President Donald Trump’s administration on Canadian products on August 22.
The US measures affected hundreds of Canadian products, including plywood, cement, wine and hockey sticks. The total value of the affected Canadian goods was estimated at more than $28 billion.
Small businesses under pressure
Dan Kelly, president of the Canadian Federation of Independent Business (CFIB), said the latest phase of the trade war had placed significant pressure on small and medium-sized businesses across the country.
The organisation represents more than 100,000 small and medium-sized businesses, and Kelly said many owners felt their companies were becoming the “sacrificial lambs” in the escalating trade dispute.
He said earlier rounds of tariffs had disproportionately affected sectors involving major goods and automobiles, while the latest measures were placing a more direct burden on small and medium-sized businesses.
Furniture company among those affected
JS Furniture, a Manitoba-based company that sells furniture and household products, is among the businesses affected by the new tariffs.
General manager Brian Kaye said US-made products account for approximately 60 per cent of the company’s sales volume.
He said laminate-style bedroom furniture was expected to face particularly significant tariff pressures.
Large furniture items such as dressers, chests and drawers could face tariffs of up to 50 per cent, while smaller products including headboards, footboard rails, nightstands and mirrors could be subject to tariffs of around 25 per cent.
Prices may not rise immediately
Kaye said the company was initially trying to absorb the additional costs itself while negotiating better arrangements with US manufacturers.
He said some customers had purchased products a month earlier and were still waiting for their deliveries, adding that the company did not want to suddenly ask those customers to pay additional amounts.
However, he acknowledged that businesses could not absorb higher costs indefinitely and said price increases could become unavoidable if the tariffs remained in place for an extended period.
Limited immediate impact on consumers
Colin Mang, an economics professor at McMaster University, said last year’s experience showed that retailers absorbed roughly 75 per cent of tariff-related costs, while only about one-quarter of the burden was passed on to consumers.
He said the impact on prices this time would depend largely on how long businesses expected the new tariffs to remain in place.
If companies believed the measures were temporary, they might choose to absorb the additional costs rather than raise prices. But doing so could put significant pressure on profit margins.
Bank of Canada weighs in
Bank of Canada Governor Tiff Macklem has also said that the Canadian and US retaliatory tariffs would increase costs for some businesses, although the measures had been imposed on a relatively limited range of products.
Economists say this is one reason most Canadians are unlikely to see an immediate and widespread change in their daily lives.
Consumers who regularly purchase specific US-made products, however, could face higher prices in the future if businesses begin passing the additional tariff costs on to customers.
Expansion plans put on hold
The renewed trade dispute has also prompted JS Furniture to put plans for opening additional stores on hold.
The company employs around 35 people, who are also being affected by cautious consumer spending, particularly sales staff whose income is partly dependent on commissions.
Business groups warn that if consumers continue to avoid major purchases because of inflation and economic uncertainty, the consequences could extend beyond higher prices.
Employment, business expansion and corporate profits could also come under pressure if the trade dispute continues and companies remain uncertain about future costs.
The latest tariff measures therefore present another challenge for Canadian businesses already dealing with higher expenses and an uncertain economic environment.
