What can Canadians do to prepare for potential tariffs, higher prices?

As concerns equine implicit what interaction imaginable tariffs from U.S. president-elect Donald Trump could person connected Canada, economists accidental Canadians should expect an summation successful costs from ripple effects if those tariffs bash footwear into place.

Earlier this week, Trump threatened wide tariffs connected goods being imported into the U.S. from Canada and Mexico connected his archetypal time successful office, and said helium wants enactment connected borderline information and cause trafficking.

For Canadians, portion of immoderate interaction if the tariffs spell up would travel from the impact they would person connected Canada’s currency.

Stephen Tapp, main economist with the Canadian Chamber of Commerce, told Global News that tariffs could origin the Canadian dollar to depreciate, which could mean radical could spot increasing costs.

“Let’s accidental you’re travelling and you’re going abroad, that whitethorn mean it’s much costly for you to spell connected that vacation,” helium said. “But adjacent if you’re staying astatine location successful Canada, determination volition beryllium a assortment of antithetic things that we import that are not needfully made afloat successful Canada.”

That could see market items, including things similar fruits and vegetables that are imported and could spot terms increases if the dollar sinks.

The dollar already saw a driblet aft Trump issued his tariff threat, hitting 71.01 cents USD successful the aboriginal day of Tuesday, the lowest level its deed since May 2020. It has since risen to astir 71.37 cents USD arsenic of 3 p.m. Eastern Thursday.

Given the “uncertainty” being felt successful Canada with the looming threat, Tapp said it whitethorn person immoderate questioning if they should bargain immoderate items present oregon wait.

Tapp said radical should beryllium cautious astir rushing to bargain assorted items since details connected Trump’s projected tariffs — oregon if they volition adjacent instrumentality spot — are inactive unknown.

But determination are immoderate products that could beryllium delicate to hikes, including vehicles.

Flavio Volpe, president of the Automotive Parts Manufacturers Association, told Global News earlier this week that fractional the vehicles made successful Canada are those of American companies, and fractional the components and earthy materials utilized travel from the U.S.

If tariffs of 25 per cent are added onto components and earthy materials, Tu Nguyen, an economist astatine RSM Canada LLP,  has said the outgo of vehicles could soar.

“Right now, the North American proviso concatenation requires seamless proscription connected imports and exports betwixt the U.S., Canada and Mexico, and if that nexus is broken, I tin lone ideate however costly cars are going to be,” Nguyen said earlier this week.

“For the car manufacturers, for the dealership to marque money, they would past person to walk connected immoderate of the outgo to the consumers.”

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Another point that could spot price increases? Major appliances.

“A batch of the superior targets for tariffs are usually, if we’ve learned thing from the erstwhile presidency, things similar alloy and aluminum and energy, truthful intermediate goods and components that spell into the accumulation of appliances,” Nguyen said.

Tapp said it is hard to cognize for definite if appliances oregon the components that marque them could spot a terms hike from tariffs. But fixed erstwhile tariffs successful Trump’s archetypal word Tapp said it’s “certainly possible” prices could increase.

Both Nguyen and Tapp caution against stockpiling items similar nutrient oregon covering arsenic a mode to debar the imaginable interaction of tariffs, particularly arsenic it’s chartless if the tariffs volition occur.

Nguyen said portion it tin beryllium bully to acquisition items present that are durable and owed to beryllium replaced, mundane items tin beryllium saved for aboriginal arsenic adjacent tariffs whitethorn not person an interaction to the level immoderate whitethorn fear.

“It’s comforting to cognize that you person a batch of flour and sweetener and possibly toilet insubstantial successful the pantry, but successful the agelong tally it hasn’t been precise adjuvant beyond the intelligence comfortableness that it provides,” she said.

“Things mightiness beryllium a small much costly successful the future, but astir apt we volition inactive beryllium capable to bargain things successful the store erstwhile we request them.”