With tariff news changing all the time, it is often difficult to differentiate between legitimate information, rumours, and empty threats.

A Tax Expert at the University of Saskatchewan is weighing in to provide some much sought-after clarification and peace of mind.

Dr. Devan Mescall says the question regarding tariffs on Canadian goods is often: Who will bear the cost, the American consumer or the Canadian seller?

“In a market where there’s not a lot of competition, for example our potash, the cost will generally be passed on to that U.S. consumer…more impactful for our Canadian producers is in really highly competitive markets where there are lots of goods that could be substituted for our Canadian good. Then, the Candian seller may have to either lower their price and bear that cost themselves, or demand will just shift to the cheaper substitute good, which will just cut out that market for the Canadian sellers.”

Mescall says tariffs more so impact the country that has levied them, so American citizens will be the ones bearing the cost of Trump’s new policies.

“These tariffs are expected to be one of the largest tax increases on the American people, about $700 billion over the next ten years they’re estimating. It’s essentially a consumption tax, just like our PST. A sales tax.”

He adds that it will weigh heavily specifically on Americans that end up spending most of their paycheck each month and can’t afford to save, making the poor poorer.

Mescall adds that cushioning the blows from President Donald Trump, and soon to be China, should be done though finding alternative trade markets instead of fighting back with more levies.

“Retaliatory tariffs are something that we have to be sort of careful with, because we don’t want to create self-inflicted wounds. So, I think you have to be very targeted on where you’re going to create the most political impact to send your message.”

The full interview, along with more of Dr. Mescall’s insight, can be found here.