With ongoing questions about whether US President Donald Trump will impose tariffs on Canada, some consumers may wonder if now is a good time to buy a new device before the cost rises.
Economists say you can probably wait.
“I think the question for households is do they have a device at home on their way out? If so, it might make sense to go out and get a replacement anyway,” said Tu Nguyen, an economist at RSM Canada. “If they have a system they don’t.” “It is still up and running and working fine, this may not be necessary as the tariff may not be implemented at all on February 1st.”
Trump has said he plans to impose sweeping 25 percent tariffs on all goods entering the country from Canada and Mexico, with February 1 as his new date after he did not sign an executive order on Inauguration Day as he originally said. He will.
Prime Minister Justin Trudeau said he supports dollar-for-dollar matching of counter tariffs.
But there’s still no confirmation whether Trump will actually implement those tariffs, and Eric Johnson, chief economist and vice president at BMO Capital Markets, told Global News that the lack of clarity creates challenges — but the best thing to do now is “don’t panic.” “
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If a “worst-case scenario” occurs in which the United States imposes tariffs and Canada responds, that would impact prices for everyone, Johnson said.
“That will increase the cost of these things significantly, certainly by an order of magnitude by the amount of that tariff,” he said.
“And then you have to take into account, you might see the Canadian dollar weaken. So, actually, that will amplify any of those differences.”
There may also be another reason to wait to buy big tickets if you can, Johnson said.
The impact that tariffs could have on the country’s labor market, in terms of potential job losses for Canadians, remains unclear.
Even with that uncertainty, Johnson said it could lead Canadians to make a different choice by delaying what they buy or buying it sooner.
The way tariff risks are perceived could have a “bigger role” than the tariffs themselves, said Saibal Rai, who holds the James McGill Chair in Supply Chain Management at McGill University.
“People, instead of buying a microwave today, might push it a little further or move it forward, depending on the context,” he said.
He added that while it is not yet clear how the devices themselves might be affected, the increase in price could come from how interconnected the Canadian and US markets are.
“Finished goods may only be produced in the United States, but a lot of the components and materials come from Canada,” Ray said.
“Canadian consumers will be affected as well as American consumers because these prices and component prices will go up when American manufacturers have to import them.”
If you decide to buy sooner rather than later, Nguyen said many devices likely won’t see their costs rise yet.
“It’s likely that a percentage of it has already been manufactured, has already been shipped to Canada and is probably sitting in warehouses across Canada right now, so the tariffs will not impact the prices of those items,” she said.
“There will likely be a leeway of a few weeks before consumers see prices, price changes, and changes in devices.”
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