What tariffs will really cost Canadians and Americans

What tariffs will really cost Canadians and Americans. What tariffs will really cost Canadians and AmericansPublished5 hours agoThe US-Canada trade war in 5 chartsPublished31 AugustTrump threatens to stop sale of Canadian Bombardier jets in USPublished17 hours agoTrump took aim at Canada in a series of Truth Social posts over the weekend.

What happened

Households and businesses have become used to tariffs impacting the cost of living for more than year now, so what will change now? Despite previous tariffs increasing costs for manufacturers, car dealerships have absorbed the "lion's share" to date, according to Bernard Yaros, lead economist at Oxford Economics. The Forest Products Association of Canada says tariffs would "raise costs on both sides of the border", while on the US side, Bill Owens, chairman of the National Association of Home Builders (NAHB) urged Trump to make building materials exempt from his tariff agenda due to an "ongoing housing affordability crisis".

"Building material tariffs heighten market uncertainty, strain supply chains and increase construction costs," he says. The Budget Lab at Yale, which monitors the impact of US government policy on the economy, says it anticipates seeing marginal increases in furnishing and other household equipment for Americans largely due to tariffs on lumber and other materials. ByNadine YousifSenior Canada reporterPublished8 September 2026, 05:39 BSTUpdated 3 hours agoPrime Minister Mark Carney has said that Canada's pivot away from the US as its largest trading partner "will come at a cost", as a wave of Canadian retaliatory tariffs on American goods come into force.

Opinion polls suggest the majority of Canadians support, external their country imposing retaliatory tariffs on the US.

The wider picture

ByMichael RaceBusiness reporter, Reporting fromNew YorkPublished29 August 2026Updated 5 hours agoThe US and Canada have been locked in a bitter trade conflict since President Donald Trump launched his tariffs policy on his return to the White House. CarsIf Trump's threat to raise tariffs on Canadian vehicles from 25% to 50% from 1 January 2027 becomes a reality, then that would deal a further blow to the automotive industry. "The recently threatened 50% tariffs on Canadian autos, trucks, and car parts would feed through to consumer prices more readily than before.

"Yaros thinks higher costs on imports to the US could accelerate a trend of manufacturers prioritising luxury cars, SUVs and pick-up trucks and push up prices in the used-car market if supplies of new but less-expensive vehicles becomes tight. Figure caption, Famous Montreal sandwich shop drops iconic US cherry pop amid tariff rowHomesConstruction materials such as steel, aluminium as well as lumber wood have had tariffs in place before the latest escalation, though Canada has now matched US rates on the metals at 50%.

That means building firms that import such materials will face higher costs and may choose to pass those on through higher prices – pushing up the cost of homes, for example. Image source, Getty ImagesImage caption, Donald Trump and Mark Carney have both declared tariffs on each other's countryTrump says Canada wants 'benefits' of being US state after trade talks collapsePublished23 AugustCarney faces crucial test after walking away from Trump's dealPublished22 AugustHousehold items A key factor in this episode of the tariff war is the volume of household items that have been specifically targeted as opposed to raw materials.

Carpets, washing machines, furniture, fridges and even knives, forks and spoons are set to have tariffs applied by Canada.

What has been reported

He says Carney's latest move has intentionally targeted goods where Canadians can "shift to domestic suppliers instead". "Like hair care products, you really can just buy that domestically instead," he adds. AlcoholThere may not be a material impact on alcohol prices, but it's clear the trade war has had an impact on Canadians' choice of drink. Many provinces in the country banned US alcohol sales last year in response to previous tariffs, with the American wine and spirits industry saying exports to the country dropped more than 70%.

"That's really had an impact on the American alcohol industry," he adds. Saskatchewan and Alberta are ​the only provinces that still sell ​American alcohol, but the former has announced its own 50% charge on US imported booze, set to kick in on 8 September, when the wider Canadian tariffs do. Jobs and wider economyWhile tariffs can end up hitting consumers in the pocket, there are other impacts on households. As well as the higher costs, the uncertainty created by the trade war could put off investment plans and stunt job creation.

What happens next

"If you're, let's say, a bespoke furniture producer in BC [British Columbia], you're now facing a 50% tariff on your exports to the US – that could really shut the business down. When it comes to US, consumers are unlikely to see much of a difference in terms of the cost of living as result of this latest battle with Canada, but frictions to trade can have longer-term economic impacts. Despite the deal remaining operational, tariffs risk putting off talks in the near future, creating more uncertainty for cross-border trade.

John Iselin, associate director at the Budget Lab at Yale, estimates the cost will only be about $3 per American household on average, but when taking into account Trump's wider trade war with the rest of the world, and particularly China, the added costs rise to about $1,000 for the average family. In a video address, Carney added that the counter-tariffs against the US "are necessary to protect our workers". "There's always a cost to action, but it doesn't come close to the cost of standing still.

"US trade representative Jamieson Greer meanwhile said that Washington would consider imposing tit-for-tat tariffs on Canada as early as Tuesday.

The report has been compiled by The Daily Waves using information reported across bbc.co.uk, cnbc.com. Details are presented according to the information available at the time of publication and may change as authorities, organisers or other relevant parties provide updates.