The Price Impact of Canadian Retaliatory Tariffs

2026

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AI-generated summary

1) This paper analyzes the impact of Canadian retaliatory tariffs on U.S. imports, revealing how these tariffs affect consumer prices, the dynamics of price adjustments, and the role of expectations and visibility in shaping these effects.
2) * Examines the pass-through of Canadian retaliatory tariffs on U.S. imports to retail prices, finding gradual and incomplete pass-through.
* Investigates how factors like retailer behavior, policy expectations, and tariff visibility influence price adjustments.
* Analyzes the reversal of price effects upon tariff removal and the role of different pricing margins in this process.
3) Tariffs, Price Pass-Through, Inflation, Retail Prices, Trade Policy

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