Why Trump's Canada tariffs are likely to have a modest impact on prices

August 24, 2026 / 4:48 PM EDT / CBS News President Trump's 50% tariffs on certain Canadian products could raise their prices in the U.S., but the narrow scope of the levies is unlikely to trigger a broader spike in inflation, trade experts said. After the tariffs, first announced in late June, took effect on Saturday following a breakdown in trade talks, Canada pledged to impose retaliatory tariffs on U.S. imports beginning Sept. U.S. businesses and consumers end up bearing the cost of tariffs, according to economists. For example, research by the nonpartisan Tax Foundation found that Trump administration tariffs imposed under the International Emergency Economic Powers Act — overturned by the Supreme Court earlier this year — cost Americans an average of $1,000 per household in 2025. The new 50% levy on Canadian goods was enacted under Section 338 of the Tariff Act of 1930, which grants the White House authority to impose duties on imports from a trade partner that is discriminating against U.S. commerce.

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