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News for residents of the “11th province”: Canadians abroad.
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Americans Are Paying 90% of Trump's Tariff Bill, Fed Study Finds
A study from the Federal Reserve Bank of New York and Columbia University, published Thursday, found that American firms and consumers have shouldered nearly 90 percent of the cost of Trump's tariffs. Foreign exporters barely budged on price.
Over 2025, the average U.S. tariff rate went from 2.6 percent to 13 percent. The researchers looked at whether foreign sellers absorbed any of the hit by lowering their prices. They didn't, really. In most months, American importers paid the full sticker increase.
One detail worth noting for anyone watching the Canada-U.S. trade war is that 83 percent of Canadian exports to the U.S. are still exempt under USMCA. That helps explain why the actual duties collected are lower than the headline tariff rate of 35 percent. But the stuff that isn't exempt - and the retaliatory tariffs Canada has put on American goods - are hitting consumers on both sides.
Trump has repeatedly said other countries are paying the tariffs. The Fed's numbers say otherwise.
Read more: Federal Reserve Bank of New York
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Canada's Poverty Rate Has Climbed Three Years in a Row
Four million Canadians - about 10.2 percent of the population - were living in poverty in 2023, according to the National Advisory Council on Poverty's latest report. The rate has risen every year since 2021.
Back in 2018, Ottawa set what it called "ambitious but realistic" targets to cut poverty in half by 2030. The first milestone, a 20 percent reduction by 2020, was briefly hit thanks to pandemic-era benefits. But since those expired, the numbers have drifted the wrong way.
The advisory council says Canada is now at risk of missing its 2030 goal entirely. Prices measured by the Consumer Price Index have risen about 20 percent since January 2020. Wages have technically grown faster, but the gains haven't reached the people who need them most.
The Carney government recently fast-tracked an increase to the GST credit and a grocery rebate to help. Whether that's enough to reverse three years of backsliding is another question.
Read more: The Globe and Mail