Increased tariffs fuel affordability and job loss fears for students
Faith Naslovar, Contributor
The Government of Canada has introduced new counter-tariffs on $27.6 billion in U.S. imports, matching U.S. levies on Canadian goods dollar-for-dollar, as post-secondary students face growing concerns about the rising cost of living.
The retaliatory tariffs took effect on Sept. 8, after the U.S. imposed 50 per cent tariffs on Canadian goods on Aug. 22.
Given the long history of trade between the two countries, the escalating trade war has caught many Canadians off guard.
“The trading relationship with Canada and the U.S., particularly post-World War II, has been exceptional,” says Mount Royal University policy studies professor Duane Bratt. “But this is probably the worst moment in Canadian U.S. relations, probably since the War of 1812.”
The latest economic standoff follows lengthy disputes between the U.S. and Canada that began in February 2025. U.S. President Donald Trump signed an executive order imposing 25 per cent tariffs on Canadian imports—citing border enforcement and drug trafficking concerns as the primary motivations.
After negotiations resumed in August of 2026, the two countries made progress towards an agreement, but Canada ultimately walked away.
“They asked too much and offered too little,” said Mark Carney during a public address on Aug. 22.
In that same address, he explained that Canadian officials were willing to remove retaliatory tariffs on strategic sectors, given that the U.S. had significantly reduced its baseline tariffs. Canada also offered to encourage provincial liquor boards to return U.S. alcohol products to store shelves.
However, Canadian officials walked away from negotiations, insisting that there would be no compromise on sovereignty, key industries or the protection of the French language and Canadian culture.
The Government of Canada subsequently released a list of products subject to counter-tariffs, including food items, toiletries, technology and clothing—essential products that could add to affordability concerns for post-secondary students.
“When you’re a student, everything’s expensive in the first place so it’s tough to manage,” says Katie Turley, a student at Mount Royal University. “I’m sure most of us are struggling with that.”
Bratt says it’s hard to distinguish whether the rising costs are directly linked to tariffs or other economic factors, including the war in Iran and its effect on oil prices.
“There will be rising costs, and affordability is going to continue to be a problem,” says Bratt.
However, he says the shifting job market poses a far more immediate threat to post-secondary students and recent graduates.
“Typically when there are job losses, they are hit by the youngest,” Bratt says.
According to Statistics Canada, Canadian employment declined by a total of 42,000 in August of this year — of that, 19,000 were youth aged 15 to 24.
Despite that decline, employment was still up 0.3 per cent in comparison to August of 2025.
Still, in response to the tariffs, the government of Canada has also announced Rapid Response Supports for Workers and employers. The $3.5 billion initiative includes adjustments to reduce Employment Insurance waiting periods and extend benefit periods.
The program targets workers in industries directly affected by tariffs like steel, aluminium, and automotive manufacturing. Indirect industries may receive little support while still facing job losses.
“The restaurants and the retail stores where nobody’s buying anything may have layoffs as well,” says Bratt. “They’re not going to get direct support.”
As the counter-tariffs remain in effect, the trade tensions between Canada and the U.S. continue to create uncertainty for Canadians.
For students like Turley, that uncertainty adds to existing financial pressures.
“It’s just kind of frustrating, and it kind of seems pathetic.”
