Canada’s new tariffs could drive up costs for Georgia businesses and families

Canada retaliated against U.S. tariffs with more tariffs of its own worth $28 billion and that went into effect Tuesday.

The tariffs range from 15 per cent to 50 per cent on imports from the U.S.

The tariffs could have a significant impact on Georgia businesses and consumers. Chris Clark, the president and CEO of the Georgia Chamber Foundation, said the state of Georgia and Canada have more than $13 billion of trade between them per year.

“We get a lot of grain and wheat products out of Canada,” Clark said. “And so we’re going to have that additional impact on Georgia families.  We could see sandwich or bread prices increase anywhere from 25-50%.”

The Yale Budget Lab estimated last week that current tariff policy could cost the average U.S. household between $1,100 and $1,800 per year.

Clark said Georgia businesses and families could be hit harder. Canada is one of Georgia’s largest foreign purchasers across several industries.

“Canada is our number one purchaser for poultry in the state of Georgia. They’re, I think, number three for peanuts. They’re in the top 10 for farm products and wood products in the state. They’re in the top three for aviation,” Clark said.

If the U.S. fails to reach an agreement with Canada, Clark said Georgia businesses and consumers will face more consequences.

“More pain,” he said. “Washington’s got to get this right and do it quickly.”

The Georgia Chamber says that international trade between the U.S., Mexico and Canada has been a critical part of the regional economy for decades. Clark said the U.S. needs a renegotiated agreement that will keep trade moving and bring stability for businesses.