Experts predict that the ongoing trade conflict between Canada and the United States will lead to increased costs for consumers and businesses across various sectors, from cellphones to gaming consoles and artificial intelligence infrastructure.
Last year, Canada exported over $4 billion US worth of electronics equipment to the U.S., which would now be impacted by the new 50 per cent tariffs imposed by U.S. President Donald Trump on a wide range of goods. Among the targeted exports, certain electrical boards and controllers hold the highest dollar value.
In response to the U.S. tariffs, Prime Minister Mark Carney announced that Canada would match them dollar for dollar.
Industry experts warn of inevitable price hikes as the trade dispute intensifies, posing risks to businesses on both sides of the border.
Carol McGlogan, president and CEO of Electro-Federation Canada, representing over 230 companies in Canada’s electrical and automation industry, expressed concern over the impact of the tariffs. She emphasized that 90% of their exports go to the U.S., anticipating that rising prices would affect various sectors, including residential, educational, and commercial constructions.
“We know that we need to double the size of the [electricity] grid between now and 2050… with the tariffs going both ways, we have just increased the cost of that for everyone, and that ultimately comes out of the taxpayers’ pockets,” McGlogan stated.
Evan Light, an associate professor at the University of Toronto, highlighted that products like gaming consoles and cell phones have been experiencing price increases due to chip shortages and supply chain challenges. He predicted that the trade tensions between Canada and the U.S. would further elevate the prices of these items.
Traffic to Canadian e-commerce marketplace Common Goods has surged 300 per cent since Canada-U.S. trade talks broke down, according to owner Valerie Crisp. She says the response shows continued interest in buying Canadian, even as consumers navigate the complexities of the new tariffs.
Light added, “In the short term, I think it’s going to be pretty terrible for everybody. I think we’ll see a lot of costs being passed on.” He also pointed out that the increased prices would be reflected in the devices consumers purchase.
Andrew Bell, chief product officer at Ottawa-based Kinaxis, a software provider for supply chain management, indicated that many clients are exploring new suppliers using their software due to the tariffs. He noted that while the tariffs may initially impact supply chains, the ultimate burden falls on the end consumers.
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Bloomberg News recently reported that Nvidia, a leading technology company, informed its customers about potential price hikes of up to 15% for its artificial intelligence chips.
Bell highlighted, “Supply chain challenges, whether they be tariffs or other disruptions, can limit or constrain… supply. The result is an increased cost