Who pays a tariff? We do.

An importer pays at the border. Shops, suppliers and buyers may share the cost. Canadian and US studies show why buyers have a stake in ending this tax.

Updated:

One short episode at seven large sellers. This share cannot turn all import duties into a bill for each family.

Canada's own test

In March 2025 Canada taxed many US goods in answer to US tariffs. The Bank of Canada tracked prices at seven large online sellers. Prices of taxed goods rose about 6% more than other goods. About a quarter of the tax reached prices, adding 0.3 points to inflation. When the taxes ended in September, prices fell back within about three months.

The US test

A study of the 2018 US tariffs found that import buyers bore the full tax at the border. Their loss was about US$51 billion. After tax revenue and gains to US firms were counted, the net US income loss was about US$7.2 billion.

What pass-through means

A tax paid at the border need not reach shop prices in full. In Canada's 2025 test, about a quarter of the tariff rate reached shop prices. Stores bore some of the cost too.

Sources

WAKE UP CANADA

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Who pays a tariff? We do.

An importer pays at the border. Shops, suppliers and buyers may share the cost. Canadian and US studies show why buyers have a stake in ending this tax.

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What this does not show: One short episode at seven large sellers. This share cannot turn all import duties into a bill for each family.

wakeupcanada.ca/en/agenda/end-import-tariffs/who-pays-a-tariff/
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Sources and notes

← Stop taxing goods for being foreign