U.S. Tariffs, Canada's Retaliation Threaten Canadian Consumer Drag, Inflation Rise

Dow Jones09-09 21:54

0954 ET - Canada's retaliatory tariffs on C$28 billion in U.S. goods is a shift that should translate to a real consumer drag. According to an ATB Financial report, the response to President Trump's latest tariffs will raise the cost of imports, now that an estimated 7%-8% from the U.S. are subject to counter-tariffs. "Some of the impacts on consumer prices are direct," says the report, pointing to consumer purchases of household goods, recreation and food, while others are indirect, meaning the tariffs fall on industrial and capital purchases that raise the cost of production which will partially be passed onto customers. The report says that this should raise inflation by 0.2%-0.3% on a rate that is "already running too high at about 3%."

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