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The price impact of Canadian retaliatory tariffs / Alberto Cavallo, Olena Kostyshyna, Oleksiy Kryvtsov, Matias Vieyra.FB3-5/2026-22E-PDF

"How do import tariffs affect retail prices? We combine daily product-level posted prices from seven major Canadian retailers with product-level tariff exposure to estimate tariff effects in a difference-in-differences framework. Prices of tariffed goods rose gradually, peaking at 6% after three months, implying pass-through of roughly one quarter of the 25% tariff. We find little spillover to untariffed substitutes and a rapid reversal of price effects after tariff removal. Adjustment occurred mainly through the frequency of price changes. Pass-through shifted with trade-policy news and was larger for products labeled "Tariffed," showing that tariff-induced inflation depends on policy expectations and tariff salience"--Abstract.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.965189&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleThe price impact of Canadian retaliatory tariffs / Alberto Cavallo, Olena Kostyshyna, Oleksiy Kryvtsov, Matias Vieyra.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2026-22
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • Title from cover.
  • Includes bibliographical references (pages 29-33).
Publishing information
  • [Ottawa] : Bank of Canada = Banque du Canada, June 26, 2026.
  • ©2026
Author / Contributor
  • Cavallo, Alberto, author.
Description1 online resource (33, 36 pages) : illustrations, graphs.
Catalogue number
  • FB3-5/2026-22E-PDF
Subject terms
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