Canadian Businesses Absorb Tariff Costs, But Consumers May Face Price Hikes Later

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Canadian Businesses Absorb Tariff Costs, But Consumers May Face Price Hikes Later
TARIFFSCONSUMER PRICESCANADIAN BUSINESSES
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Despite rising costs due to US-Canada trade tensions, some Canadian businesses are choosing to absorb the impact instead of immediately passing it on to consumers. However, experts warn that this may be unsustainable in the long run and price increases could become inevitable if a trade agreement is not reached soon.

Tractor trailers and vehicles cross the Peace Bridge at the Canada-United States border in Fort Erie, Ontario, Canada, on Tuesday, March 4, 2025.and experts warn of rising consumer costs on both sides of the border, some Ontario businesses say they’re refusing to pass added costs onto consumers — at least for now.

Kelly also adds that the CFIB recently surveyed small businesses on how they plan to handle the tariffs. He notes, only two in ten said they believe they can pass all of the costs onto customers, while one in ten said they expect to absorb the entire impact themselves. “If we’re going to match dollar for dollar, then that’s going to mean the majority of goods we bring in from the U.S. will be subject to tariffs,” Kelly said. “And there’s no way that Canadian small businesses are going to be able to displace every U.S. product. In some sectors, U.S. suppliers are the only game in town.”“We just don’t feel it’s right to profit off of a terrible, terrible act,” Owner and CEO Chrys Chrysanthou said. “We’re doing whatever we can to keep costs as low as possible.

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TARIFFS CONSUMER PRICES CANADIAN BUSINESSES TRADE WAR US-CANADA RELATIONS

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