RESOLVING THE LEDGER
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President Trump\u0027s 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. 8.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 \u2014 overturned by the Supreme Court\u00a0earlier this year \u2014\u00a0cost 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.\u00a0But while the tariff rate is unusually high, it only applies to about 5% of Canada\u0027s exports to the U.S. and does not constitute "a particularly broad U.S. trade action," said trade attorney Patrick Childress, a partner at law firm Holland & Knight and formerly assistant general counsel at the Office of the U.S. Trade Representative."If Canada\u0027s retaliatory tariffs are similarly narrow, then neither set of tariffs would cause immediate, economy-wide upheaval, and both sides could live with them for some time," he said.\u00a0Another factor that could deter sharp price hikes is that businesses are often reluctant to immediately pass along tariff costs to consumers, especially given uncertainty over how long the Section 338 levies will remain in effect, according to trade attorneys.\u00a0"Companies have taken a lot of different approaches to mitigate or share the cost of tariffs to try to avoid passing that on to the consumer," Ernst & Young trade policy expert Blake Harden told CBS News.\u00a0Here are some of the main categories of Canadian goods now subject to a 50% import tax in the U.S.AlcoholThe White House stated in a\u00a0document\u00a0published to the Federal Register that Canada unfairly penalized American-made alcoholic beverages when Canadian provinces in 2025 stopped buying, distributing, and selling U.S. alcohol.From March 2025 through February 2026, U.S. alcohol exports to Canada fell by roughly 81%, harming businesses and workers, according to the White House.The new 50% duties apply to beer, wine, cider, pisco and singani, brandy, rum, whisky and other spirits exported from Canada to the U.S.Dairy goodsThe White House also\u00a0said\u00a0Canada disadvantages U.S. dairy farmers compared with other countries. In response, the Trump administration is imposing 50% tariffs on Canadian exports of milk and ice cream, including powdered varieties, as well as on other "non-solid" dairy products.\u00a0Paper and wood products\u00a0The U.S. is also imposing a 50% levy on paper and wood products, including items such as ice cream and popsicle sticks, tongue depressors, pickets, posts and a variety of paper goods.Ice hockey equipmentCanadian-made ice hockey and field hockey sticks, plus other equipment related to the sports, are included on the White House\u0027s list of tariffed products. Skates are excluded from the new levies.\u00a0Home decor and fashionTortoise shell, raw hides and horse hair \u2014 common fashion and interior design materials \u2014 are subject to the 50% levy. A wide range of clothing, including knitted and crocheted dresses, anoraks and windbreakers, gloves and mittens and other wardrobe staples, is also subject to the new duties.\u00a0The new tariff will also apply to a range of Canadian exports, including flags, bookbinding materials, some types of vacuum cleaners and Christmas ornaments.\u00a0
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