Ottawa’s trade war strategy is making life more expensive for Canadians while doing little to pressure the United States. By imposing retaliatory tariffs on essential goods, the federal government is driving up prices at a time when affordability is already a crisis. This policy, framed as a patriotic stand against U.S. trade aggression, is in reality a tax on consumers—one that benefits Ottawa while doing little to shift Washington’s course.
Canada is highly dependent on trade, with nearly 75 per cent of its exports going to the United States. Unlike the U.S., which benefits from a much larger domestic market and the global reserve currency, Canada lacks the economic leverage to win a prolonged tariff war. Yet instead of adopting a calculated strategy that minimizes domestic harm, the Trudeau government has chosen to slap tariffs on food and essential goods, a move that is both short-sighted and self-defeating.
Tariffs act as a hidden tax on consumers. Every product affected by a tariff doesn’t just become more expensive for businesses—it becomes more expensive for families at the checkout line. Tariffs on imported food, agricultural products and everyday necessities drive up inflation, shrink disposable incomes and place an even greater financial strain on households.
Proponents argue tariffs are a necessary tool to counter unfair U.S. trade policies, but history suggests otherwise. Trade wars rarely end with the weaker economy coming out ahead. Instead, they escalate into prolonged battles where both sides lose—but one side loses more. In this case, that’s Canada.
Beyond the immediate increase in prices, this strategy risks worsening inflation and pushing Canada toward a recession. Businesses that rely on imported materials will see their costs rise, which they will inevitably pass on to consumers. At the same time, households will be forced to cut back on spending, further slowing economic activity. Since consumer spending is a key driver of Canada’s economy, this policy could deepen the downturn.
More troubling is how the federal government is using this trade war as a disguised tax grab. Not only does Ottawa collect revenue from tariffs, but it also benefits from the additional five per cent GST charged on inflated prices. That means while Canadian families struggle with higher costs, the government profits from their hardship. Instead of protecting consumers, it is capitalizing on their financial struggles.
Rather than harming its own citizens, Canada should adopt a smarter approach—one that puts pressure on the United States without inflicting unnecessary pain on Canadians. A more effective response would be to shift the burden onto U.S. consumers by taxing key Canadian exports such as potash, beef, pork, grains and canola oil—commodities the U.S. heavily relies on. Unlike tariffs on consumer goods, these measures would strategically target American industries and policymakers while shielding Canadian households from further economic strain.
The government’s current approach does little to achieve meaningful concessions from the U.S. while making life harder for Canadians. Worse, Ottawa is presenting this policy as a patriotic stand against trade aggression when, in reality, it’s an economic miscalculation that disproportionately harms its own citizens.
With a new leader set to take charge in Canada within days, the future of these policies remains uncertain. But one thing is clear: continuing down this path will only bring greater hardship to Canadian families. It’s time for a new strategy—one that defends Canada’s interests without making its own people bear the cost.
Dr. Sylvain Charlebois is a Canadian professor and researcher in food distribution and policy. He is senior director of the Agri-Food Analytics Lab at Dalhousie University and co-host of . He is frequently cited in the media for his insights on food prices, agricultural trends, and the global food supply chain.
© Troy Media
The views, opinions and positions expressed by all Troy Media columnists and contributors are the author's alone. They do not inherently or expressly reflect the views, opinions and/or positions of Troy Media.
The commentaries offered on Â鶹´«Ã½ are intended to provide thought-provoking material for our readers. The opinions expressed are those of the authors. Contributors' articles or letters do not necessarily reflect the opinion of any Â鶹´«Ã½ staff.
