Overview
The U.S. tariffs may impact everyday Canadian consumers in a variety of ways, few of them positive. The tariffs are likely to have a significant negative effect on the job market, the cost-of-living crisis, the cost of doing business, business profitability, and the relations between the two countries.
In this article, we’ll look at the impact of U.S. tariffs on the Canadian economy and five tips to deal with the possible fallout as an average Canadian.
How the U.S. Tariffs Work
The U.S. has imposed a universal 10% tariff on all the world’s countries as well as assorted high tariffs on Canada and other countries.
The intention may be to encourage Americans to buy American. However, it ignores the fundamental reality of how the modern economy works: it is highly integrated and globalized. Imposing a tax on imported goods from all the world’s countries will result in increased costs of said goods for average consumers.
This means fewer dollars in everybody’s pockets.
The tariffs are not a new idea, but they’ve never brought good results, historically speaking. The last time they were implemented was during the Great Depression, with disastrous consequences.
Other countries are likely to respond with retaliatory tariffs on U.S. goods, further complicating affordability issues across the globe.
A Trifecta of Impacts: Employment, Cost of Living, and Business
The Impact on Employment
U.S. tariffs may make Canadian goods more expensive, which can reduce demand. This, in turn, may affect bottom lines. As Canadian companies lose profitability, they may be forced to lay off workers. This may result in a shrinking job market against a backdrop of an already-stiff competition for jobs.
The Impact on the Cost of Living
Tariffs make U.S. products more expensive. Given the high prevalence of U.S. products in Canadian markets, this may result in a higher cost of living. Increased prices spur inflation, which further deteriorates the value of money in Canadians’ pockets, even as fewer dollars remain. Unchecked, the trade war may push both neighbours into a recession, like two people refusing to let go of each other as they head over a cliff.
The Impact on Business
Artificially increased costs drive down demand for Canadian products, causing the deterioration of Canadian business prospects. Profitability drops, and opportunities shrink, even as Americans and Canadians alike pay higher prices without any added benefit.
In the next section, we’ll review five tips to cope with the tariff-induced economic crisis.
5 Tips to Cope with the Crisis
Despite the significant impacts the U.S. tariffs may have, there are potential ways for average Canadian consumers to cope with the crisis:
- Buy Canadian goods. They may be comparatively more affordable.
- Buy in bulk. This may reduce the cost per unit. Just make sure the items last long enough for you to make use of them.
- Shop at thrift stores. You may obtain useful items at a far lower price.
- Lower variable expenses. Reducing frivolous expenses may help lighten the load of higher costs overall.
- Take advantage of sales e.g. Boxing Day, Cyber Monday, etc. You may obtain needed items for less.
In the next section, we’ll look at whether e-transfer loans can be of assistance when it comes to covering expenses in uncertain times.
Can E-Transfer Loans Help?
E-transfer loans may offer quick funds to help cover immediate expenses. Repaid over installments, including applicable interest and fees, e-transfer loans may be obtained via a quick online application process, without a credit check. Funds may be e-transferred directly to your bank account as soon as the next day, ensuring quick access to cash.
Final Thoughts
The U.S. tariffs will worsen existing affordability and cost-of-living issues across Ontario. This is due to the negative impact of U.S. tariffs on the steel industry, the auto industry, and other major industries. Job numbers may fall, incomes may fall, and bottom lines may shrink.
It’s no wonder, then, that Ontarians may need quick financial relief.
If you need help covering urgent expenses, apply for an e-transfer loan via OntarioCASH. We don’t check your credit score or credit report during the quick online application process. That said, Instant Bank Verification (IBV) may still be used to verify banking details. Funds may be e-transferred to your bank account as soon as the next day. You may also consider signing up for Credit Verify to track your credit health automatically.
