Terms apply to American Express benefits and offers. On Tuesday, Canada imposed new tariffs as high as 50% on select U.S. goods, affecting $27.6 billion in imports from the U.S. This comes in response to tariffs the United States placed on Canadian goods entering the U.S. on August 22, after ongoing trade talks collapsed. The U.S.-imposed tariffs will likely cause price increases on a wide variety of imports from Canada, including alcohol, building materials, furniture, consumer electronics, and more. It's unclear exactly how long tariffs from either country will stay in place, or if they'll be expanded to include even more goods if negotiations continue to stall.
A tariff is a tax that governments charge on prespecified goods when they cross the border into that nation. The critical part of a tariff is who pays the tax, which is partially the business importing the goods. With the August 22 tariffs on Canadian goods, U.S. retailers now pay more to import the same goods. To reduce the impact of this tax, businesses often raise prices, but the impact might not be immediate. A 2026 Federal Reserve study found that when tariffs are implemented, the increases are felt slowly over time rather than a one-time price spike. 'Price increases are a moving target,' Ted Rossman, principal consumer finance analyst at Money Management International (MMI), tells CNBC Select, meaning it can be difficult to predict when the impact may be felt. 'The timing is generally faster for perishables such as dairy products and slower for durable goods such as furniture and cars,' he says, noting American consumers are already stretched thin.
The tariffs from both countries reach up to 50%, but this doesn't mean the price of affected goods will increase by the same amount. A separate Federal Reserve study from this year tracked the prices of impacted goods from tariffs implemented in November 2025 to February 2026. These goods became 3.1% more expensive, raising the total cost of households by 0.8%.
During a time when every dollar counts, using a rewards credit card could help soften the financial impact of tariffs. General rewards cards can help you get more savings from spending you're already doing. For example: - **Groceries:** Tariffs on Canadian beer, wine, spirits, dairy ingredients, and more could cause price increases during weekly shopping. The Blue Cash Preferred® Card from American Express offers 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases, redeemable as statement credits. - **Home goods and household purchases:** Tariffs on Canadian paper products, tableware, kitchenware, appliances, and more may impact prices. The Citi Double Cash® Card earns 2% cash back on all purchases (1% when you buy, 1% when you pay). - **Home improvement and renovations:** Tariffs on Canadian paint, flooring, wood, fixtures, tools, and hardware could increase costs. The Wells Fargo Reflect® Card offers a 21-month 0% APR intro period for balance transfers, helping manage payments and avoid debt.
Hardware store-branded credit cards, such as the MyLowe’s Rewards™ Credit Card, can offer additional savings, like 5% off eligible purchases and a welcome discount of up to $100 for new cardholders.
Editorial Note: Opinions, analyses, reviews, or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved, or otherwise endorsed by any third party.
Source: CNBC
