Tariff Price Hikes May Take Time to Hit Shelves as Retailers Work Through Inventory

Canada’s counter-tariffs on U.S. goods have spurred a fresh flood of retaliatory measures, but retail experts say there will be a short lag before shoppers see price increases on store shelves.

Matt Poirier with the Retail Council of Canada says it will take time for stores to work through existing inventory and begin stocking newly tariffed goods.

He says items with a shorter shelf life and other fast-selling products will likely see prices rise first, followed by durable goods with slower inventory turnover like ovens and washing machines.

Canada’s retaliatory duties—ranging from 15 to 50 percent on nearly $28 billion worth of American products including clothing, carpets and electronics—prompted U.S. President Donald Trump on Tuesday to ban imports of certain Canadian goods starting Sept. 29.

Trade experts say Canadian shoppers may be briefly shielded from the full impact of the trade war as new tariff costs are negotiated along the supply chain and businesses temporarily absorb some of the cost by accepting smaller profit margins.

They say the first noticeable signs of the counter-tariffs on Canadian shelves are likely to be fewer promotions and less product choice as retailers replace American goods with Canadian or overseas alternatives.