Oct 7, 2026
U.S. President Donald Trump has lodged a new complaint about Canada: that the country imposed secret tariffs he says only he knew about.
On Oct. 5, a reporter outside the White House asked whether he’d restart trade talks between the two nations before the U.S. midterm elections. Trump answered that Canada “behaves very badly with the United States, and I don’t know. Uh, we’ve caught them in the act. They charged us a lot of tariffs that nobody knew about — except me.”
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He didn’t mention any specific levies. Canada’s own counter-tariffs are hardly clandestine, since the Department of Finance has published the full product list online.
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More important for your finances was Trump’s remark during the same impromptu presser that he’s “in no rush” to try and solve the situation. As a result, tariffs on both sides of the border may be around for the foreseeable future, and that will shape how you spend, budget and borrow.
What’s being taxed right now?
On Aug. 22, after deliberations between the two neighbouring nations fell by the wayside, the U.S. placed a 50% tariff on $27.6 billion of Canadian goods. Canada retaliated on Sept. 8, matching it dollar for dollar. Instead of a sweeping 50%, It imposed levies of 15%, 25% or 50% on a large swath of U.S.-origin products, depending on the item.
The list leans heavily industrial, but it also reaches everyday items including:
- Cheese
- Honey
- Makeup and perfume
- Plastic kitchenware
- Toilet paper
- Cotton T-shirts
- Synthetic winter coats
- Carpets
- Drywall
One key detail: the surtax doesn’t apply to goods that have only shipped through the U.S.
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How much could this add to your bills?
Ali Jaffery, chief economist at KPMG Canada, told The Globe and Mail that 80% of the tariffs target industrial inputs, while the remainder centre on consumer goods, a split that should keep the inflation impact muted. Even so, Jaffery expects directly targeted consumer products to rise 1% to 1.5% in price over the next six months if the tariffs stay in place.
Those increases land on top of inflation that’s already running hot. Statistics Canada reported that consumer prices rose 3% year over year in August, which is directly tied to rising fuel costs due to the Iran war.
There is some welcome news from the last round of counter-tariffs. McMaster University economist Colin Mang told CTV News that the previous set of 25% tariffs Canada imposed on U.S. goods contributed only 0.3 percentage points to the consumer price index. “Most of the cost was absorbed by retailers, so they didn’t really impact Canadian families that much,” he said.
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Mang also noted that because the previous tariffs, like today’s, were targeted, it was harder to raise prices on affected goods when prices for non-U.S. competitors’ products stayed the same.
Why does ‘no rush’ matter for your money?
Tariff costs build incrementally. The Bank of Canada has estimated that about three-quarters of tariff costs will typically increase consumer prices within 18 months. The longer the dispute lasts, the greater the chance that cost will reach shelves.
Borrowing costs are also important. The Bank of Canada held its policy rate at 2.25% on Sept. 2, with the central bank noting that the new tariffs and counter-tariffs could feed into consumer prices over time. The upside risks to inflation are increasing, which makes rate cuts less likely — so don’t count on cheaper borrowing to cushion the blow.
What to do now
While you don’t need to panic-buy most essential items, you do need to plan as if tariffs will last months rather than weeks.
- Be more vigilant at the store. When shopping for appliances, furniture, winter gear and renovation materials, check the country of origin on the label.
- Swap rather than stockpile. Mang notes that Canadian and international alternatives already exist for most targeted products on the tariff list, so shortages aren’t expected. Stock up only on the favourite brands you’d buy anyway, such as specific cosmetics or clothing.
- Pad your budget for increased spending. A 1.5% increase on a $2,000 U.S.-made fridge works out to about a $30 surcharge. While that’s marginal, it will add up across several purchases.
- Stress-test your mortgage renewal. If you’re renewing in the next year, budget at today’s rates rather than hoping for future cuts.
- Build a cushion if your job is exposed. The Bank of Canada doesn’t expect a large direct hit to the overall economy, but targeted sectors could be hit harder than others. If you work in industries such as steel, aluminum, autos or dairy, build up your emergency fund now.
Whatever Trump meant by ‘secret’ tariffs, the ones that are actually affecting your budget are public and open-ended. In the near term, make sure to shop around, and treat these levies as a cost of living you’ll carry into 2027 unless a deal says otherwise.
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Writer and editor based in Toronto with experience in personal finance, insurance, arts and culture and branded content.
