Are You Being Overcharged for Tariffs?

Is your prairie-based company getting dinged with price increases that aren’t legitimate?

In March 2025, the government of Canada placed 25% counter-tariffs on $60 billion worth of US goods. This included a broad swath of products from agricultural products to office electronics.

One would think this would result in price increases on products we buy from Canadian retailers, manufacturers and processors who source products, parts or materials from the US.

However, this is only partly the case, at this point in time.

In April, the Canadian government announced a 6-month exemption of tariffs  on goods imported from the U.S. that are used in Canadian manufacturing, processing and food and beverage packaging, and for those used to support public health, health care, public safety, and national security objectives.

This was done to “provide immediate relief to a broad cross-section of Canadian businesses that must rely on U.S. inputs to support their competitiveness, and to provide businesses with additional time to adjust their supply chains and prioritize domestic sources of supply if available”.

Therefore, Canadian manufacturers and processors don’t yet face these tariffs. So, you, as their customer, shouldn't yet either.

If your company buys products or supplies, whether as inputs or overhead, from Canadian manufacturers or processors, and they are announcing price increases based on tariffs, their claim may not be legitimate.

On the other hand, for products purchased from Canadian retailers, price increases could be warranted. End-products on the Canadian tariff list that are bought from the US by Canadian distributors and retailers are still subject to Canada’s 25% counter-tariff, with no 6-month relief.

One issue with wide-spread tariffs is that some companies can take advantage of peoples’ expectations of price increases and increase their prices even if the products they source are not subject to tariffs. Therefore, it helps to be well informed as to whether tariffs are currently imposed on a supplier’s products, parts or materials.

That said, this can be difficult to know for sure, even with Canadian manufacturers and processors benefiting from the 6 month tariff relief.

With Canadian retailers, identifying what country the product is sourced from is relatively easy, by asking the retailer or looking up the product’s manufacturer online.

But one must also know whether that US product is actually subject to Canadian tariffs. One way is to check the government of Canada webpages listing the US products subject to tariffs. However, those lists are hundreds of pages long and excruciatingly detailed. Alternatively, you can check the simplified list we put together.

US products that are currently subject to 25% Canadian counter-tariffs may, in fact, see large price increases from Canadian retailers.

As well, prices from Canadian retailers, manufacturers and processors sourcing from US manufacturers can increase even if they are not subject to Canadian tariffs, or have the 6 month exemption for Canadian manufacturers and processors. This is because those US manufacturers may be facing higher parts and material costs due to US tariffs placed on other countries they source from. 

While US manufacturers may shift their sourcing to the United States, their costs may still increase, although less than the tariffs they face.

Canadian retailers, manufacturers and processors, whether sourcing from US manufacturers or not, may also increase prices due to higher overhead costs, as I outlined in a previous article. However, such cost increases should affect their product pricing much less than direct tariffs on their products, parts or materials. Small price increases may be due to such overhead cost increases.

In some cases, depending on your buying power with your supplier, it may not be possible to check whether their price increases are legitimate. In those cases, the only recourse is to look for alternate suppliers in order to: 1) verify your current suppliers’ pricing, 2) have a lower-priced alternative to negotiate with, or 3) switch suppliers.

One thing is certain: watching your costs closely and proactively identifying alternate suppliers will put you in the best position to avoid illegitimate price increases.

For other ways to navigate these challenging times with confidence, get the free complete Trade-War Success Guide for Small to Mid-Size Companies below.

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If you are a prairie CEO who wants to grow a thriving company through these turbulent times, more quickly, more easily and with less stress and headache, please contact me here.

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