Canada's reciprocal tariffs unlikely to hit consumers' grocery bills, economists say

Retaliatory tariffs may not push grocery prices higher, but other products such as health and beauty items are set to get more expensive, economists say. KPMG chief economist Ali Jaffery says some shoppers may shy away from products that will see significant price increases, but overall, the latest round of duties is unlikely to hit most consumer items. That's because the federal government's counter-tariffs have been designed to limit economic damage and the price pressures Canadians will face, Jaffery says. The reciprocal tariffs, ranging from 15 to 50 per cent, apply to imports from the United States on a laundry list of items, including dairy, cosmetics, clothing and textiles. Desjardins principal economist Florence Jean-Jacobs says most imports targeted in the retaliatory duties are also produced in Canada, so it should be relatively easy for food wholesalers to find alternatives. Similarly, she says consumers may avoid items where prices do jump, such as in the beauty products category, which could push retailers to ultimately reduce the number of U.S. products on store shelves. This report by The Canadian Press was first published Sept. 8, 2026. Ritika Dubey, The Canadian Press