Canada's Retaliatory Tariffs Add $100M Weekly Consumer Cost, Economist Tells MPs

University of Calgary economist Trevor Tombe testified before the House of Commons foreign affairs committee on October 21, 2026, that Ottawa's September 8 counter-tariffs on $28 billion in U.S. imports are imposing roughly $100 million per week in added costs on Canadian consumers, raising prices by about 0.25 percentage points overall. The measures, ranging from 15% on farm equipment and appliances to 50% on smartphones, furniture, aluminum, and steel, hit lower-income households hardest, cutting disposable income by half a percentage point for those earning under $30,000 annually—triple the impact on higher earners. Tombe noted the package represents about 60 cents of retaliation per dollar of U.S. tariffs, contradicting government framing of dollar-for-dollar measures, and found no evidence it has altered U.S. policy. He described tariffs as equivalent to a domestic consumption tax plus production subsidy. Prior rounds generated $4 billion in federal revenue over six months. Coverage from The Hub and Western Standard aligns closely with the testimony details first reported by Blacklock's Reporter, while Tombe's own earlier analyses in The Hub estimated broader consumer hits near $4 billion from related retaliation. Connections to the trilemma of targeting politically sensitive U.S. goods, major Canadian buyers, and easily substitutable items highlight implementation challenges, with full retaliation proving difficult for a smaller economy. The policy's regressive effects on cost-of-living pressures stand out amid broader trade tensions framed more as U.S. domestic shifts than bilateral disputes.