For months, Canadians have quietly paid the price of a simmering trade dispute with their closest ally. What began as a tit-for-tat tariff war between Ottawa and Washington evolved into a slow bleed for small businesses, consumers, and entire industries across Canada. From the grocery aisle in Halifax to the factory floor in Windsor, the effects were tangible: orange juice that cost 20% more, washing machines priced hundreds above market value, and local retailers struggling to stay afloat.
Now, in a surprising but calculated move, Prime Minister Mark Carney’s government has announced the removal of retaliatory tariffs on a wide range of U.S. goods. The decision marks a turning point in Canada-U.S. trade relations and signals a strategic pivot ahead of the 2026 CUSMA (Canada-U.S.-Mexico Agreement) review.
But what does this mean for Canadians? Let’s unpack the what, why, and when and explore how this policy shift could reshape your next trip to the grocery store or hardware shop, and whether businesses can claw back some of the costs they’ve already absorbed.
WHAT Tariffs Were Removed and What It Means for Prices
Canada has lifted retaliatory tariffs on dozens of U.S. goods that were previously subject to import duties despite being compliant with CUSMA rules. These tariffs had a direct impact on consumer prices, often in ways that weren’t immediately obvious.
Goods No Longer Taxed:
Here’s a breakdown of key categories and how prices were affected:
Food & Beverage
- Orange Juice: A 20% tariff raised prices from $4.99 to $5.99 per carton. With the tariff removed, prices are expected to normalize.
- Peanut Butter: Previously taxed at 15%, pushing prices from $3.49 to $4.09.
- Ketchup & Condiments: Tariffs added $0.50–$1.00 per bottle, especially for U.S. brands like Heinz.
- Craft Beer: A 10% tariff added nearly $2 to a six-pack, hurting local bars and restaurants that rely on U.S. imports.
Household Appliances
- Washing Machines: Tariffs added $150–$300 per unit, pricing out lower-income households.
- Microwaves & Refrigerators: Prices inflated by 12–18%, with some models jumping from $899 to over $1,050.
Consumer Goods
- Denim Jeans: Retail prices jumped from $59 to $72 due to a 10% tariff.
- Running Shoes: Brands like Nike and New Balance saw 15% increases, with shoes rising from $120 to $138.
- Lipstick & Toothpaste: Everyday essentials saw 8–10% increases, disproportionately affecting low-income consumers.
Home Essentials
- Paper Towels & Toilet Paper: Tariffs added $1–$3 per pack, compounding inflationary pressures.
- Bed Sheets & Towels: A 10% tariff raised prices by $5–$10 per item.
These goods are now tariff-free, meaning prices should begin to fall though retailers may take time to adjust inventory and pricing.
Tariffs Still in Place:
Canada is maintaining retaliatory tariffs on:
- Steel & Aluminum
- Automobiles
These sectors remain under U.S. protectionist measures and are being used as leverage in ongoing negotiations.
WHEN Are Tariffs Being Removed?
The removal of most retaliatory tariffs officially takes effect on September 1, 2025. This date aligns with Canada’s decision to match U.S. exemptions for CUSMA-compliant goods and comes ahead of the 2026 review of the trade pact.
The timing is strategic:
- It allows Canadian businesses to prepare for holiday inventory without inflated costs.
- It signals to Washington that Canada is serious about resetting trade relations.
- It gives Ottawa time to consult stakeholders before the next round of CUSMA negotiations.
How Peacock Tariff Consulting Helps Companies Recover Tariff Costs
For Canadian businesses that paid inflated import duties during the retaliatory tariff period, the good news is: refunds are possible. But navigating the bureaucratic maze of remission requests, eligibility criteria, and documentation requirements can be daunting. That’s where Peacock Tariff Consulting steps in. The firm specializes in helping businesses unlock tariff refunds from the Canadian government turning sunk costs into reclaimed capital.
What Peacock Tariff Consulting Offers:
- Eligibility Assessment Not every tariff qualifies for a refund. Peacock Tariff Consulting conducts a thorough review of your import history to determine which goods meet the criteria under Canada’s remission and duty drawback programs.
- Documentation & Filing The refund process often requires detailed paperwork including Form B2 submissions to the Canada Border Services Agency (CBSA), proof of economic harm, and compliance with trade regulations. Peacock’s team handles the entire filing process, ensuring accuracy and timeliness.
- Strategic Positioning For businesses seeking not just refunds but long-term tariff resilience, Peacock offers strategic tariff planning helping clients restructure supply chains, optimize sourcing, and prepare for future trade shifts.
- Case-by-Case Advocacy Refunds are not automatic. Peacock Tariff Consulting builds tailored cases for each client, advocating for relief under exceptional circumstances such as lack of domestic alternatives or critical supply chain disruptions.
Real-World Example:
A mid-sized appliance distributor in Ontario paid over $300,000 in tariffs on U.S. washing machines between March and August 2025. With Peacock’s help, the company submitted a remission request backed by supply chain data, financial impact analysis, and trade compliance records. The case is now under review by the Department of Finance, with a potential refund of up to 80% of duties paid.
Timing & Deadlines:
- Refund claims must be submitted within two years of the importation date.
- Peacock Tariff Consulting recommends acting quickly, especially for goods imported during the peak tariff window (March–August 2025).
- Businesses should maintain detailed records of import invoices, tariff payments, and product usage.
Peacock Tariff Consulting was founded with a mission to demystify trade tariffs and empower Canadian businesses to reclaim what’s theirs. In a post-tariff landscape, that mission is more relevant than ever.
WHY Is Canada Removing Tariffs?
To Reset Trade Relations
Canada’s retaliatory tariffs were a response to U.S. duties on Canadian steel and aluminum. With the U.S. now exempting CUSMA-compliant Canadian goods, Ottawa is reciprocating to foster goodwill and prepare for deeper negotiations.
To Support Small Businesses
A recent survey revealed:
- 58% of SMEs were negatively impacted by tariffs.
- 67% absorbed the costs, unable to pass them on to consumers.
- 38% feared closure if the dispute continued for another year.
Retailers in towns like Orillia reported losing customers to U.S. online stores, where prices were lower despite shipping costs. Removing tariffs helps level the playing field and gives local businesses a fighting chance.
To Combat Inflation
Tariffs acted as a hidden tax on consumers, compounding inflation during a time when Canadians were already grappling with rising interest rates, housing costs, and food insecurity. Removing these duties is a targeted way to ease price pressures without cutting public spending.
To Preserve Competitive Advantage
Despite the trade war, 85% of Canada-U.S. trade remains tariff-free a privilege few other countries enjoy. Maintaining this edge is crucial for Canadian workers and exporters, especially as global supply chains shift and new trade blocs emerge.
To Refocus on Domestic Growth
Carney’s administration is shifting toward “nation-building” infrastructure projects, aiming to strengthen the economy from within while keeping trade channels open. Removing tariffs frees up political and economic bandwidth to focus on housing, transit, and energy.
A Calculated Retreat for a Strategic Advance
Canada’s decision to remove retaliatory tariffs isn’t a surrender it’s a recalibration. By lifting duties on everyday goods, the government is easing pressure on consumers and businesses while clearing the path for more constructive trade talks with the U.S.
For Sally in Halifax, this could mean cheaper groceries, more affordable appliances, and a stronger local economy. For Canada as a whole, it’s a chance to reassert its role as a pragmatic, forward-thinking trade partner in a world where economic diplomacy matters more than ever.
As the 2026 CUSMA review looms, this move positions Canada not just as a participant, but as a leader in shaping the future of North American trade.