At Montreal’s Esposito market, shoppers are preparing for price hikes to hit home.
From grocery stores to gas pumps, experts warn the costs of everyday essentials will be affected by trade trouble. And with the province projecting mass layoffs, Quebecers are bracing for the fallout.
“I’m kind of tightening the belt in many areas, until I’m hoping this blows over because it’s too ridiculous to be real,” said Dana Steward, standing next to the clearance cart.
Over in the produce section, Nabil Alami was worried.
“Things are not looking good. It’s going to be tough for a lot of families.”
Anne Kostalas echoed the sentiment.
“I’m here for fruits and vegetables, and I know a lot of it is from the states, so I’m picking carefully.”
Food including meat, vegetables and fruits are on the long list of products from the U.S. subject to Canada’s 25 per cent counter-tariffs.
It might take a few weeks, but most retailers will pass the cost on to Quebecers, says McGill University agricultural economist Pascal Theriault.
“Unfortunately, consumers will be the ones paying the price of those tariffs,” he says. “It’s true in Canada, it’s true in the U.S. Tariffs never make winners.”
Theriault adds the value of the Canadian dollar will determine how expensive imports get.
Meanwhile at gas stations across the province, prices will probably go down, according to Dan McTeague, who runs Canadians for Affordable Energy.
“For the time being, a slight decrease in gasoline prices over the next week or two. Until we see the full effect of these tariffs, and the retaliation, not just from Canada, but of course from Mexico.”
Trump and Trudeau are both imposing 10 per cent tariffs on energy coming across the border. Those levies will presumably increase prices, but McTeague says if people can’t pay more at the pump, demand will drop, bringing costs down.
The trade war is jeopardizing up to 160,000 jobs, according to the Federation of Quebec Chambers of Commerce.
“We did a recent survey where we saw that one-third of companies were concerned about surviving, about being able to stay in business,” says the federation’s president Veronique Proulx.
She adds that local factories with production in the U.S. will fold, and the longer the trade war lasts, the more damage it will cause to companies and consumers caught in the cross fire.
