Tariff changes for imports from emerging nations such as China and India will cost Canadians hundreds of millions of dollars on various products say analysts. In 2015, Thursday’s federal budget will cause the graduation of 72 countries from developed to developing country status, thus increasing tariffs. This comes as import duties were removed on sport equipment and baby clothes—which Finance Minister Jim Flaherty said he hoped would help remove the Canada—U.S. price gap.
The tariff removal will affect 37 items, but the tariff penalty will increase prices on over 1000 products, says Mike Moffatt, a professor at the Richard Ivey School of Business at the University of Western Ontario. The Bank of Montreal chief economist Doug Porter, who studies the U.S.-Canada price gap, these tariff changes may thus increase the price differences between the two countries even more.