Imagine walking into your favourite local game shop or car dealership, only to find the price tags have jumped overnight — not because of inflation or supply shortages, but due to a looming trade conflict between Canada and the United States.
That’s exactly what could happen starting August 1st, 2025, as the U.S. prepares to slap new tariffs on Canadian goods. The ripple effect? Canadian businesses and consumers may soon bear the brunt of yet another financial blow.
What’s Happening: U.S. Tariffs Set to Hit Canadian Imports
The U.S. is preparing to implement a 35% tariff on select Canadian goods, marking another chapter in the ongoing trade tension. While the full list of targeted items isn’t public, early signs point toward cars, trading cards, steel, aluminum, and even copper.
This move comes just days after U.S. President Donald Trump bluntly said, “We haven’t really had a lot of luck with Canada… I think Canada could be one where they’ll just pay tariffs. It’s not really a negotiation.”
Impact on Local Businesses: Costs Rising, Demand Shrinking
In Winnipeg, local game shop A Muse N Games is already feeling the pinch. Items like trading cards have jumped 25% in cost, even before the new tariffs officially take hold.
And it’s not just niche hobbies. Mitchell Etkin from Match Auto notes a troubling trend — fewer customers are buying new vehicles, instead turning to used options due to tight budgets and higher prices.
The Canadian Federation of Independent Business (CFIB) warns that these added costs are squeezing small businesses even further. With low consumer demand and rising expenses, many entrepreneurs are pausing growth plans altogether.
The Bigger Picture: Canadians Already Under Pressure
Let’s not forget: Canadian households are already battling record-high grocery bills, housing costs, and shrinking savings. Adding trade-related price hikes to the mix could tip many families into financial distress.
It’s not just about trading cards or car models. It’s about how everyday Canadian life is becoming more expensive, piece by piece.
The Political Crossfire: No Clear Deal in Sight
Canada’s Minister for U.S. Trade, Dominic LeBlanc, recently met with U.S. officials, including Commerce Secretary Howard Lutnick. While talks were described as “complex but encouraging,” LeBlanc admitted that a resolution by Aug. 1 is unlikely.
Meanwhile, President Trump maintains that unless a deal is struck, Canada will simply face the tariffs — with potential for even higher rates if Canada responds with its own counter-tariffs.
What This Means for You: Prepare for Higher Prices
If these tariffs go live:
- Businesses will face cost increases that may be passed on to customers.
- Consumers could see spikes in everything from collector’s items to household electronics.
- Families already managing tight budgets may struggle to afford big-ticket purchases.
In Conclusion: Another Financial Storm on the Horizon?
As the August 1 deadline looms, uncertainty hangs heavy over Canadian wallets. Whether you’re a small business owner, a car buyer, or just someone trying to keep the grocery bill manageable, the message is clear: Be prepared.
The hope is that diplomacy prevails and a deal is reached. But if not, Canadians could face yet another round of price hikes — this time, driven by policy decisions far beyond their control.