How US Tariffs Affect Canadians: Prices, Jobs and Savings

This page sets out which trade measures are in force between Canada and the United States, and where they touch a Canadian household’s budget, job and savings. It is part of our cost of living in Canada guides; for the overall rise in prices, see Canada’s inflation rate.

Where the trade dispute stands

Measures in force when we last checked the Department of Finance Canada and the US Federal Register (October 2, 2026). Both governments have changed their measures several times, so check the official pages linked in the notes before relying on a rate.

US measures on Canadian goods

Source: US Federal Register: Proclamation 10908 (autos), Proclamation 10976 (lumber), Proclamation 11021 (steel, aluminum and copper), the US Trade Representative’s notice of Section 301 actions, Proclamations 11046 to 11048 and 11056 (Section 338 duties) and Proclamations 11061 to 11063 (import bans). Finance Canada puts the goods covered by the Section 338 duties at $27.6 billion.

Canada’s counter-tariffs on US goods

Source: Department of Finance Canada, “Canada’s tariff responses to the changing global trade landscape” and its complete list of US products subject to counter tariffs. Canada removed the counter-tariffs it had put on most US imports in March 2025 on September 1, 2025.

How the trade dispute can raise prices in Canada

Canada’s counter-tariffs

A counter-tariff is paid by the importer when a US-origin product enters Canada. Whether, and how much of, that cost shows up in the shelf price depends on the seller and on whether a non-US alternative is available. Finance Canada says the counter-tariffs apply only to goods that originate in the US, so the same product made in Canada, Mexico or elsewhere carries no counter-tariff.

Canada’s steel surtaxes

Since December 26, 2025, Canada has also charged a 25% surtax on certain steel derivative products from any country, including the US, and tariffs on steel from non-CUSMA countries imported above set quota volumes (Finance Canada). Unlike the counter-tariffs, the derivative surtax applies whatever the product’s origin.

The exchange rate

A weaker Canadian dollar makes all imports more expensive, not only those from the US. On the Bank of Canada’s daily rates, one Canadian dollar was worth US$0.694 on January 2, 2025 and US$0.709 on September 23, 2026, higher than at the start of 2025.

Groceries

The counter-tariff list in force since September 8, 2026 is set out by Customs Tariff item. Its food items are concentrated in dairy (concentrated milk and cream, whey, and cheese), plus honey, molasses and some flour-based mixes and doughs. It has no tariff items for meat, fresh fruit, fresh vegetables, coffee or juice.

According to Statistics Canada, prices for food purchased from stores were 2.8% higher in August 2026 than a year earlier, below the all-items rate of 3.0%. For what households spend on food, see the average grocery bill in Canada.

Because the counter-tariff applies only to US-origin goods, checking where dairy products were made, the main food category on the list, is one way to avoid it.

Cars and the auto sector

The North American auto industry has an integrated supply chain: parts and components may cross the Canada-US-Mexico borders as many as 8 times before final assembly, according to the Canadian Vehicle Manufacturers’ Association.

For Canadian buyers, the tariff that matters is Canada’s counter-tariff: 25% on vehicles imported from the US that do not comply with CUSMA, and on the non-Canadian, non-Mexican content of CUSMA-compliant vehicles (Finance Canada). Vehicles built in Canada or Mexico are not US-origin goods. The car affordability calculator shows what a given price means for a monthly budget.

Renovations, appliances and building materials

• Appliances: appliances are one of the sectors on Canada’s counter-tariff list since September 8, 2026, so US-made appliances on the list can cost more.
• Steel and aluminum: Canada’s counter-tariffs on certain US steel and aluminum products are 25% or 50%, which can raise the cost of products made from them.
• Lumber: the US 10% Section 232 tariff on softwood lumber applies to Canadian lumber entering the US, not to lumber bought in Canada.

Jobs in exposed sectors

For Canadians in industries the US measures target, the larger financial risk is to income rather than prices.

The auto industry also indirectly supported about 427,000 jobs in 2024, according to ISED.

Options for workers in these sectors:

• Emergency fund: the Financial Consumer Agency of Canada suggests saving 3 to 6 months of regular expenses; the emergency fund calculator works out the amount.
• EI: the EI calculator estimates benefits if your hours are cut or you are laid off.
• Mortgage: if your income drops, your lender may offer options such as a mortgage payment deferral.

Savings and investments

Currency

A Canadian who holds US-dollar investments gains in Canadian-dollar terms when the Canadian dollar weakens and loses when it strengthens, on top of the investments’ own returns. A weaker Canadian dollar also makes new purchases of US-dollar assets more expensive.

Diversification

Spreading investments across Canadian, US and international markets, for example through an all-in-one ETF, reduces how much a portfolio depends on any one economy. For fixed-income options and current rates, see the best GIC rates; how the trade dispute feeds into borrowing costs is covered in how US tariffs affect Canadian mortgage rates.

Related guides

• Canada’s inflation rate
• Average grocery bill in Canada
• Canada vs US cost of living
• How US tariffs affect Canadian mortgage rates
• How to save money fast in Canada
• EI benefits