The Decibel Why tariffs haven’t hit consumer prices hard – yet
Aug 21, 2025
Mariya Postelnyak, a consumer affairs reporter at The Globe and Mail, breaks down the surprising stability of consumer prices despite recent trade tariffs. She discusses how businesses have managed to keep prices in check through strategic sourcing and inventory management. The conversation touches on why some sectors have remained unaffected while anticipating potential price hikes this holiday season. With a focus on the intricate relationship between tariffs and consumer behavior, it's a fascinating look at what might happen next!
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Tariffs’ Immediate Price Impact Was Muted
- Predicted big price spikes from tariffs did not materialize across the board in the first months after March.
- Car prices rose modestly (~4%) and overall consumer price impact looked closer to 2% for the last quarter forecast.
Price Pain Was Sector Specific
- The largest early price increases concentrated in appliances, furniture, cars, beer and canned goods.
- Some appliance prices rose ~8.5% while others, like vacuums, fell about 4%.
Tariff Effects Often Travel Via Global Supply Chains
- Many price increases trace to U.S. tariffs on global suppliers rather than solely Canadian counter-tariffs.
- U.S. manufacturers pay higher input costs (steel, components) which then feed back into prices for Canadian consumers.