Examples of Tariff Increases
- Bicycles: Current: 8.5% New: 13.0%
- Venetian Blinds: Current: 3.0% New: 7.0%
- Table fans: Current: 2.5% New: 8.0%
- Tableware: Current: 3.0% New: 6.5%
- Umbrellas: Current: 5.0% New: 7.0%
- Potato starch: Current: 5.0% New: 10.5%
The government expects to raise $333 million by these tariff hikes while expecting to lose $72 million for eliminating tariffs on hockey equipment - purely as a distraction.
"They are basically giving us a dollar and taking back five. It's a bit of a shell-game," Moffatt said.
There isn't a full list of products that will be effected but South Korea sells a lot of cars in Canada and their tariffs are expected to increase as well. Electronics, clothing, appliances and all essential needs are also expected to take a hit.
Bank of Montreal chief economist Doug Porter said that Conservative tariff policy will widen the price-gap between Canada and the US that sees American prices be much lower than Canadian prices on common goods when the dollar is at parity. This move would make Canadian prices more expensive and lead to more people fleeing to the American border.
"One wonders if this doesn't potentially lead to even more of a problem on the price gap. I have to wonder if this isn't taking from one hand and piling on to the other... aggravating cross-border shopping," he said.
Analysts also say the tariff hikes could be used as a trading maneuver to force these countries to give something in exchange for lower tariffs but the same can be done with their current rates.
"We chose a few items so we can watch and see what happens to consumer prices," he explained. "If it works there are other tariffs we can reduce over time."