Bank of Canada: Countertariffs Raised Prices 6%

OTTAWA - A Bank of Canada analysis released Monday found that prices for goods hit by Canada's short-lived countertariffs on U.S. imports rose about six per cent higher on average than unaffected products, with retailers passing along nearly a quarter of the added duties to consumers.

The federal government enacted 25-per-cent tariffs on various grocery items, clothing and household staples from the United States starting in March 2025. The measures lasted roughly six months as retaliation against initial tariffs imposed by U.S. President Donald Trump. Ottawa lifted most of the countertariffs in September 2025.

Researchers at the central bank examined pricing data for more than 100,000 tariff-affected goods across seven retailers, comparing them to a control group of non-tariffed products. By mid-June 2025, consumers shouldered about 25 per cent of the countertariff costs through elevated prices, the study concluded.

Those price hikes largely normalized within three months of the tariffs' removal, returning to pre-tariff levels. The report highlighted a key distinction among tariffed items: products explicitly flagged to shoppers as subject to duties commanded even higher markups...