U.S. President Donald Trump’s tariffs on Canadian products threaten Canada’s economy, leaving many students worried about the potential impacts on the job market, their budgets, and overall financial well-being.
“There is no good thing that’s going to come out of these tariffs for anybody. Students, seniors, workers, anybody,” predicts Duane Bratt, a political scientist and professor at Mount Royal University.
Trump’s 10 per cent tariff on Canadian energy and 25 per cent on all other imports began in early March. The tariffs threaten to plunge Canada into a recession.
The pain of tariffs for consumers
Bratt expects consumers to suffer if these tariffs go through.
“The reason that people buy an imported product is because it’s either cheaper or better. [The tariffs will] artificially increase that price by 10 per cent, 15 per cent, or 25 per cent. So one of two things happens. Either the price of that good is going to be increased for consumers, or the company decides not to sell in that market,” said Bratt.
Although companies bear the responsibility of paying the tariffs upfront, the price increase is often passed down to consumers through higher costs of goods and services.
“Anyone who buys stuff is going to pay a premium on a tariff product in one way or the other,” said Bratt. “Everybody is going to pay more money, whether that’s gasoline, whether that is strawberries, whether that is tax [or] textbooks.”
The increased burden on students
Student leaders predict many students will struggle to pay more for basic goods.
Tala Abu Hayyaneh, the President of the Student Association at Mount Royal University (SAMRU), says students already can’t afford the basics.
“Students [are] reporting to us that they have been skipping meals… having to eat less during their meals or … reducing how much they are spending on quality food items such as, essential fruits and vegetables to be able to make ends meet,” said Abu Hayyaneh.
Not just higher prices
According to the Census Bureau, Canada is America’s largest export market and second-largest trading partner, with $800 billion worth of products flowing across the border in the first three quarters of 2024. When factoring in services, the total is boosted to $910 billion. In addition, 34 U.S. states sell more goods to Canada than any other nation. In response to American tariffs, the Canadian government imposed retaliatory tariffs and promised further tariffs on more than $100 billion US worth of American products, possibly further straining economic relations and intensifying the impact on students.
Bratt warns that Canada’s economic interdependence with America could create challenges for students and recent graduates entering the job market.
“If we get into a full-blown trade war, it will probably push Canada into an economic recession, meaning hundreds of thousands of job losses,” Bratt added.