With tariffs on China, trade tension with U.S., what could get costlier in 2025?

With trade disputes with two of Canada’s largest trade partners – China and the United States – looming, some experts are warning that consumers could see higher prices.

Some things could get more expensive in the new year.

With trade disputes with Canada’s two largest trade partners – China and the United States – looming, some experts are warning that consumers could see higher prices for goods, from solar panels to cars, over the next couple of years.

Tabled on Dec. 16, the day Chrystia Freeland resigned as Canada’s finance minister, the 2024 fall economic statement announced “Canada’s intent to impose tariffs on imports of certain solar products and critical minerals from China early in the new year.”

“The tariffs on solar products and critical minerals from China are likely to increase the cost of solar panels, inverters, and batteries in the short term, as these items rely heavily on imported components and materials,” said Iggy Domagalski, CEO of the Wajax Corporation, which provides equipment, parts, and services to Canadian industries.

The budget document did not say how big the tariffs are going to be, but said they would be imposed early in the new year.

However, Erik Johnson, senior economist at BMO Capital Markets, said some of the higher costs could be mitigated if Chinese firms find ways around Canada’s tariffs by using southeast Asian exporters. This changes the country of origin from China to whichever country Chinese firms are using as an export hub.

“There’s a lot of kind of trade via Southeast Asia, which is basically China using Southeast Asia to ship a lot of solar products to avoid tariffs,” he said.

The year 2026 could see even broader tariffs on Chinese imports.