Who Benefits from Tariffs? Who Pays the Price?
Week 2 – Tariff Tuesdays | Chilliwack Chamber of Commerce
Tariffs have become a prominent part of global trade discussions, but their impacts are often misunderstood. As a member of Chilliwack’s dynamic business community—whether you’re a farmer, manufacturer, exporter, or consumer—it’s important to understand who benefits from tariffs and who ultimately bears the cost.
What Are Tariffs?
Tariffs are taxes placed on imported goods. Governments often introduce them to:
– Protect domestic industries from foreign competition
– Encourage local production
– Respond to trade disputes
According to Export Development Canada (EDC), tariffs are also used as negotiation tools or retaliatory measures in global trade relationships—especially between major players like Canada and the U.S.
Who Benefits?
Some groups may see short-term advantages:
– Domestic producers competing against foreign goods
– Governments, which collect tariff revenue
– Developing industries, protected as they scale
Here in British Columbia, some manufacturers may temporarily benefit when imported alternatives are taxed, but this often comes with trade-offs elsewhere in the economy.
Who Pays?
Tariffs may appear to target foreign countries, but in reality, the costs are often passed along to:
– Consumers – in the form of higher prices
– Importers and retailers – who absorb or pass on costs
– Exporters – especially when retaliatory tariffs are introduced
In agriculture-rich regions like Chilliwack, local farmers and producers have been directly impacted. When countries respond to Canadian tariffs with restrictions on our products, Fraser Valley exports like blueberries, pork, and dairy become less competitive globally.
Why It Matters in Chilliwack
Our region depends on both local production and international trade. Many Chilliwack businesses import supplies or parts and export finished goods. Tariffs disrupt these connections—impacting everything from farm profitability to retail pricing to consumer choice.
What Can You Do?
- Know your supply chain – Understand where tariffs may affect your business.
2. Stay informed – Follow this series and other Chamber updates to stay ahead.
3. Share your voice – Let us know how tariffs have impacted your operation—so we can advocate on your behalf.
Resources
– How Tariffs Work for Business – Export Development Canada: https://www.edc.ca/en/article/how-tariffs-work-for-business.html
– Understanding Tariffs and How They Affect Your Finances – Scotiabank: https://www.scotiabank.com/ca/en/personal/advice-plus/features/posts.understanding-tariffs-and-how-they-can-affect-your-finances.html
Next Week: The Economic Implications of Tariffs – A Closer Look
