The U.S.-China trade war is getting ugly — how Canadian shoppers can avoid the worst of it
As Trump raises tariffs against China to 125 per cent, Canadian consumers and businesses are collateral damage.
Trump has instituted a 90-day pause on "reciprocal" tariffs on non-retaliating countries, but the U.S. president doubled down on China, raising the tariff rate to 125 per cent. As both the U.S. and China are major trading partners of Canada, Canadians aren't immune to the consequences of the latest tariff surge.
Prior to Trump's announcement on Wednesday, the U.S. president approved tariffs on 185 countries, including the United States' largest trading partners, on what the president called "Liberation Day." Several countries, including Canada, issued retaliatory tariffs — Canada's counter 25 per cent tariffs on vehicles imported from the U.S. began April 9 — significantly impacting the global supply chain.
Of all the nations impacted by Trump's escalating trade war, no country faces a larger levy than China. The Trump administration announced steep 125 per cent tariffs on Chinese products on April 9, prompting Beijing to respond in kind to Trump's "trade tyranny" with 84 per cent retaliatory tariffs on American goods.
The escalation of the U.S.-China trade war stands to touch every industry across Canada. As the world's two largest economies, it will impact manufacturing, agriculture, food, clothing, retail goods and the like.
"It's significant. You have the two big economic gorillas starting to fight," Matt Poirier, Retail Council of Canada's Vice President of Federal Government Relations, told Global News. "The entire supply chain has been thrown into chaos."
In general, supply chain complications raise costs for businesses, and businesses can then choose to pass those costs on to consumers. Even if Canadians are spared from the bulk of Trump's direct tariffs, Canadian businesses could see an adverse trickle-down effect from the tariffs imposed between the U.S. and China. Canadian businesses that import goods from U.S. suppliers that were originally made in China will see prices skyrocket if tacking on duties.
China is the world's manufacturing superpower, accounting for over 30 per cent of the global manufacturing output. A significant portion of the goods imported into the United States are then re-exported into Canada.
In 2024, of Canada's imports of goods produced in China, over 25 per cent were first imported into the United States, according to Statistics Canada. If last year's figures continue into 2025, approximately one-quarter of Chinese-made goods could be impacted by tariffs in the Canadian market.
Canadian businesses would have to import directly from China or other trade-friendly countries, avoiding the U.S. altogether, to prevent trickle-down 104 per cent duties.
For Canada's imports of goods produced in China, over 25% were first imported to the United States.Statistics Canada
The U.S. has been a longtime distribution hub for goods destined for Canada, so it is easier said than done for Canadian businesses to immediately diversify their supply chains.
While it's difficult to pinpoint an exact figure, a significant portion of goods sold on Amazon Canada, for example, originate from China. Some sources estimate that as much as 70 per cent of goods on Amazon are manufactured in China, though it's unclear what percentage of goods flow through the United States before coming north.
I am a Canadian shopper. What can I do to avoid tariffs?
In general, when you order from a Canadian website and are shipping from Canada, you don't have to pay additional duty charges. However, if a Canadian retailer uses an American supplier to sell Chinese products, they may pass on the cost of tariffs to the customer. If you are ordering from a U.S.-based website that manufactures its goods in China, you should expect prices to rise and, in some instances, more than double.
The best course of action for Canadians is to buy Canadian whenever and wherever possible. A significant portion of consumer imports come from China via the U.S., but in light of tariffs, Canadian businesses will likely try to diversify wherever they can. In the meantime, shop for Canadian brands, especially those whose products meet the Competition Bureau's product of Canada or made-in-Canada designations.
If this all seems incredibly overwhelming, Yahoo Canada's shopping team has created several guides to help Canadians navigate the current tariff crisis:
Canadian brands: Shop 200+ Canadian brands
Cleaning & Laundry: Shop Canadian cleaning and laundry brands
Gardening & Lawn care: Shop Canadian gardening and lawn products
Kitchen & Baking: Best made-in-Canada kitchen, cooking and baking brands
Furniture & Home: Shop Canadian furniture and home decor brands
Pet supplies: Best made-in-Canada pet supplies
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