U.S. tariff policy remains in flux as the latest major development involves the growing U.S.-Canada trade dispute. Canada has begun imposing retaliatory tariffs of 15% to 50% on about $20 billion of U.S. goods, including steel, appliances, farm equipment and other products.
In the United States, tariffs also continue to affect industrial and electrical products. Certain metal-intensive industrial equipment and electrical-grid equipment face a 15% tariff through 2027, while some steel-, aluminum- and copper-intensive products face higher rates. The United States Trade Representative said rising copper prices are also creating additional pressure because copper is widely used in electrical equipment and power-grid construction.
Here’s what to know
about tariff policies and how Arizona is affected.
Canadian tariffs affect these US products
Canada’s new retaliatory tariffs target a list of hundreds of U.S. products. They are concentrated in a few sectors including dairy, appliances, agricultural equipment, pulp and paper, plastics, and electronics.
Canada also increased its existing countertariffs on U.S. steel and aluminum from 25% to 50% to match American rates.
Among the items hit with 50% tariffs are American milk, T-shirts, perfume, smartphones, and some furniture. Facing 25% tariffs are U.S. cheese, toilet paper, carpets, and some appliances. American air conditioners and some machinery parts are subject to 15% tariffs.
Will Arizonans pay more after Canada's new tariffs?
Garvey said the impact of the Canadian tariffs on U.S. goods is likely to be "relatively minimal" for everyday Americans. However, because both countries' production relies on imports from the other, prices could still rise. Say Canadian manufacturers need to pay more for materials imported from the United States due to tariffs. If they use those materials to make a product that is then exported back to United States, that product could face another tariff, further driving up its cost.
"You end up with a decrease in efficiency when it comes to Canadian-U.S. trade, and any decrease in efficiency is probably going to result in higher prices," Padhraic Garvey, head of research at Dutch bank ING, said.
How much does Arizona pay in tariffs?
According to the National Taxpayers Union Foundation, Arizona is ranked 23rd among U.S. states for estimated tariff costs, with about $3.2 billion in tariffs paid since January 2025.
Prices on these items from Canada could increase
Canada's retaliatory tariffs follow Trump's move to place a 50% tariff on goods imported into the United States, which took effect in mid-August.
It is uncertain how much of the increased cost importers will pass on to consumers across all the different impacted industries.
These are some popular groceries from Canada items likely to see price increases:
- Alcohol products including Canadian whisky and wine.
- Dairy products including milk, cream, whey and milk protein concentrates.
- Sweeteners like sugars and cane molasses.
- Paper products including tissues, napkins, paper plates and paper cups.
Additionally, other portions of these tariffs could ultimately affect the production of canned goods and beverages, candies, packaged baked goods and baking mixes, and beer.
What do we import from Canada?
The following common imports from Canada to the U.S., according to the Bureau of Industry and Security and Trading Economics, were expected be affected by those tariffs:
- Wood
- Charcoal
- Aluminum
- Iron and steel appliances
- Cereal, flour, starch and milk products
- Rubbers
- Alcoholic beverages
- Carpets and other textile floor coverings
- Wool, animal hair, horsehair yarn and fabric
- Umbrellas, walking sticks, seat sticks, whips
- Cotton
- Photographic or cinematographic goods
- Cork products
- Printed books
What does Canada import from the US?
The following is a list of goods Canada commonly imports from the United States, according to Trading Economics.
- Vehicles other than railway, tramway
- Machinery, nuclear reactors, boilers
- Mineral fuels, oils, distillation products
- Electrical, electronic equipment
- Plastics
- Commodities not specified according to kind
- Optical, photo, technical, medical apparatus
- Pharmaceutical products
- Paper and paperboard, articles of pulp, paper and board
- Miscellaneous chemical products
- Pearls, precious stones, metals, coins
- Aircraft, spacecraft
- Articles of iron or steel
- Iron and steel
- Cereal, flour, starch, milk preparations and products
- Miscellaneous edible preparations
- Organic chemicals
- Rubbers
- Soaps, lubricants, waxes, candles, modelling pastes
- Essential oils, perfumes, cosmetics, toileteries
- Beverages, spirits and vinegar
- Aluminum
- Furniture, lighting signs, prefabricated buildings
- Ores slag and ash
This article originally appeared on Arizona Republic: Canada tariffs could raise cost of these items. What to know
