How Will Tariffs Impact Canadians?
With new trade tariffs imposed by the United States, your insurance may go up because of rising repair and material costs.
Western Financial Group, a 100% Canadian company, can help you navigate your car, home, and business insurance during this period of economic uncertainty.
How can Western help you with insurance during the trade war?
We have a strong presence from coast-to-coast:
- Western Financial Group (Alberta-based)
- Huestis Insurance Group (Atlantic Canada)
- Wyatt Dowling Insurance Brokers (Winnipeg)
- Western Coast Insurance Services (Victoria)
Western is a leading national insurance broker that has partnered with top insurance companies to provide car, home, and business insurance to Canadians. We work with our insurance partners to find the best coverage rate at the right value for you.
Do you have the right insurance for economic uncertainty? Western can help you with risk assessment and mitigation.
Our insurance experts can go over your car, home, or business coverage to make sure you are covered for any risks you may face during trade war.
Takeaway: Western can help you save by providing affordable insurance coverage that meets your needs.
What’s the current tariff?
U.S. President Donald Trump has put a 25% general tariff on virtually all Canadian goods entering the U.S. from Canda. Auto tariffs have been given a month-long reprieve.
Prime Minister Justin Trudeau responded with tariffs on $30 billion worth of U.S. goods.
Impact: It may mean the price of consumer goods for Canadians will go up.
How will tariffs impact insurance?
Will my car insurance or home insurance go up because of the trade war with the United States? Will my business insurance go up?
Answer: It will depend on when your car, home, or business premium is due, if you have a claim, and how long the tariffs last. We’re at the beginning of the trade war.
Insurers are preparing to have higher claims costs due to the tariffs.
Car insurance: how could it be affected?
An eventual 25% tariff on imports from Canada is expected to increase prices for vehicles and auto parts.
Higher car prices would increase claims for repairs and it would increase the potential payout that an insurer must cover in the event of a policy holder’s vehicle being a total loss.
Impact: If the auto tariffs are eventually applied, the likely result would be higher car insurance premiums for Canadians.
Did you know? The North American auto supply chain means that parts can cross the U.S.-Canada border multiple times before a car is assembled. Tariffs at each stage of production would further impact the cost of a car for consumers.
Home insurance: how could it be affected?
The 25% tariff on imports from Canada could increase the price of construction materials, especially lumber, which is a major Canadian export to the United States.
Impact: This increase in costs would directly affect insurance companies' claims expenses for repairing or rebuilding homes after fire or severe weather, for example.
Business insurance: how could it be affected?
What businesses could be most affected: Manufacturing, including automakers, and transportation
For business owners, the tariffs are expected to cause supply chain disruptions, which would lead to higher costs and possible delays in getting parts for repairs.
Business owners should work with their insurance provider to review and adjust their coverages as needed due to the tariffs.
Impact: The tariffs may result in increased commercial claims costs for insurers, which could be passed through to business owners’ insurance premiums.
What can I do as a Canadian consumer during the trade war?
Stay informed. Keep up-to-date with the latest developments in the U.S.-Canada trade dispute and how they could affect your car, home, and business insurance and other financial aspects of your life. Get professional advice if you need it.
Be prepared for price increases. It’s a time of economic uncertainty. That means it’s important to understand that the cost of some U.S. goods could rise due to the tariffs. Budget accordingly and consider alternatives when possible.
Buy local: Buy Canadian and non-U.S. products. Shop at Canadian businesses that may be affected by the tariffs to help lessen any economic impact on your community. Choose a vacation in Canada.
Western is dedicated to our communities
Western reinvests in the Canadian communities that it serves. The Western Communities Foundation is a non-profit organization that partners with other charitable programs focusing on health, public housing, education, and recreation to help improve our communities.
Why choose Western Financial Group?
- Canadian expertise that understands your community.
- Get the best car and home insurance
- Personalized coverage to meet your needs
- Trusted advice
FAQs
What is a tariff?
A tariff is a duty imposed by a government on goods or services imported from another country. Tariffs raise revenue for the country imposing them, making imports more expensive.
Is a tariff a tax?
A tariff is a type of tax. A tariff raises revenue for a government, protects domestic industries by making imports more expensive, and can give the country that imposes a tariff political leverage.
Is a tariff a tax on consumers?
Tariffs raise the cost of imported goods, which often leads to higher prices for consumers.
Groceries, energy products, and other consumer goods are expected to become more expensive for Canadian consumers due to the tariffs.
What is a tariff trade war?
A tariff trade war is an economic dispute between countries that involves putting retaliatory tariffs on each other's imports.
How do tariffs affect consumers?
Tariffs raise the cost of imported goods and lead to higher prices for consumers. For example: Imported U.S. fruit would cost more for Canadian consumers. Tariffs on Canada, Mexico, and China could impact prices for cars and automotive parts, electronics and smartphones, clothing, toys, food, and agricultural products, among others.
What are the negative effects of tariffs?
Tariffs can lead to reduced consumer spending, potentially slowing a country’s economic growth.
How do you win a trade war?
Winning a trade war can be difficult and can lead to economic damage for all parties involved. A strategic approach is to put tariffs on specific goods to protect domestic industries and reduce dependency on a single trading partner.
Are there any positives in a trade war?
Tariffs can protect some domestic industries from foreign competition, potentially saving jobs. They can also increase demand for domestic goods because higher prices on imports may cause consumers to buy locally. Tariffs can bring an opportunity for a country to find new trading partners.
