Prime Minister Trudeau announced the details surrounding the Canadian response to the US Tariffs announced over the weekend. There will be a phased rollout with tariffs valued at $30 Billion starting on Tuesday February 4th and an additional $125 Billion in tariffs rolling out in three weeks time to allow companies and the supply chain to find alternatives.
How quickly will you feel the impacts of these tariffs? It'll depend on the product with some items seeing almost instant price increases as the impacts of the tariffs are priced in and others having a lag time due to existing supply or unclear impacts from the tariffs. Adding to the complexity is the integrated nature of the North American supply chain with many products and their components crossing multiple borders during the production process.
Check out the full list of counter-tariffs for the initial $30 Billion announced by the Federal Government. These tariffs go into effect tomorrow (Feb 4th).
This is an analysis of the tariff decision and the impact it may have on the Canadian economy. If you're looking for a more analytical view on the situation and you want to understand the numbers behind the decision than this is a great piece.
In addition to the tariff analysis the folks at TD also put together a summary of the Canada-U.S. trade relationship to help understand all of the claims and statements being thrown around by the politicians.
This is an interesting look at the tariffs and the trade war from the perspective of the Republican Senate Majority Leader (John Thune). There are many politicians stuck between a rock and a hard place south of the border who will help dictate what happens going forward and he is one of the bigger names.
This is an interesting piece looking at how the tariffs function, their impact on US relationships and overall how these decisions are damaging the US reputation globally. It's an easy read but a good look behind the curtain if you want to see the bigger picture beyond prices increasing.
The Federal Government has announced that they are postponing the implementation of the capital gains tax changes to 2026. These changes were in limbo since parliament was prorogued with the CRA insisting they will enforce them as they are written unless given other guidance. With this announcement the CRA has reverted back to the existing inclusion rates.
With February starting we are less than a month away from personal tax season. We will be sending out an email later this month with more information to get your tax returns started but if you have any questions or want to get a better idea of what your tax return will look like than please reach so we can discuss your situation and your options moving forward.
