Canada-U.S. trade war leads to price hike for appliances, concern for produce

Consumers can expect a bit of sticker shock if they're in the market for a new refrigerator or stove.

Price increases for those appliances are one of the latest casualties in the ongoing trade war between Canada and the U.S., specifically the retaliatory tariffs the federal government imposed beginning July 1.

However, one large furniture and appliance shop with locations across southwestern Ontario appears to have found the silver lining in a gloomy situation — a way to actually reduce prices.

Tepperman's purchases between 20-30 per cent of its furniture and appliances from the U.S.

So, company buyers are seeking out more products made in Canada. But, they will also be purchasing from factories in places like South Korea.

"Because buying by container overseas will actually bring the price down," said president Andrew Tepperman.

It'll be shipped to a port in Vancouver and taken by rail to southern Ontario. The process is much more complicated and time consuming then purchasing from the U.S., but Tepperman said he's been left with few other options.

Some of his suppliers have committed to hold off on prices increases until August.

Tepperman warns that none of this is certain because even if his Canadian suppliers source materials from the U.S., that will result in higher prices.

From appliances to produce

Windsor produce wholesaler and retailer Silverstein's Produce is already expecting price hikes, despite not being hit with any tariffs yet.

Owner Tony Sorge said the tariffs are going to hit not only his business, but restaurants.

They purchase in wholesale products like romaine lettuce, and if restaurants raise their prices, people are going to start staying home for their meals more.

"I'm pretty sure everybody's not willing to pay the tariffs, I sure am not, because it's going to cost more," said Sorge. "It's a chain reaction."

Even an anticipated five to 10 per cent tariff would be costly for the business, he said, and combined with recent increases in labour costs, the 50-year-old business may be shut down.

And there are only so many places he can cut from to reduce the overhead, he added.

"I don't even want to say that because I grew up with my father and he taught me everything that I know, and it's difficult to say that I'm going to be closing because I don't want to close," said Sorge.