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Canadian families face rising costs from Ottawa’s counter-tariffs, says MEI
MONTREAL — The Montreal Economic Institute says Ottawa’s counter-tariffs on American goods have cost Canadian households nearly $92 each in just two months. The public policy think tank, which advocates for market-oriented reforms, says the tariffs added $1.51 billion in new taxes in April and May alone as part of Canada’s response to U.S. trade measures.
Economist Emmanuelle B. Faubert of the MEI said the tariffs are effectively a tax on consumers that drives up the cost of imported goods. The institute’s analysis shows tariff collections have increased by nearly 180 per cent compared to the same period last year.
If the trend continues, Canadian households could face an extra $549 in tariff costs by the end of the federal budget year on March 31, 2026. MEI estimates the total impact on consumers could reach $9.1 billion over the year.
An MEI-Ipsos poll found that 77 per cent of Canadians believe retaliatory tariffs on U.S. goods are raising the cost of essentials. Prime Minister Mark Carney has acknowledged that some tariffs on Canadian exports are likely to remain part of any eventual trade deal with the United States.
The MEI has long urged Ottawa to eliminate trade barriers, not just with the United States but with all countries. Faubert said the federal government should focus on dismantling barriers rather than reinforcing them, adding that free trade would strengthen the economy, attract investment and lower consumer prices.
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