Canada's new counter-tariffs (15%, 25%, and 50%) on $27.6 billion worth of U.S. imports are more complex than retailers assume. ePost Global President Kelly Martinez sits down with Chain Store Age to help clear up some of the confusion.
Exposure starts with country of origin
A U.S. seller seeing its products' HS codes on the tariff list might assume full exposure. But if those products were made in China, the new tariffs on U.S.-origin goods won't apply. Retailers that misread their exposure risk unnecessary price increases and market pullback.
Once retailers know which products are actually affected, pricing decisions follow. During the 2025 tariff cycle, prices on tariffed goods rose about 6% relative to unaffected products. Retailers absorbed much of the cost initially but adjusted pricing as expectations around tariff duration shifted.
Managing costs
Kelly emphasizes that transparency matters more than ever. If duties or tariffs are passed along, checkout systems must show the full landed cost before purchase. Surprising customers with unexpected charges at delivery costs conversions.
However, other political factors are affecting retailers this season. A Build Canada poll found that 69% of Canadian respondents are choosing Canadian products despite higher prices, and 55% have stopped buying specific American brands. This creates demand-planning risk beyond tariffed products.
Retailers need flexibility. Rather than waiting to see how tariffs unfold, build scenarios now for different pricing, promotion, and inventory outcomes. Know which products are exposed, what customers will pay, and how demand responds so you can adjust quickly.
