What does 96% tariff pass-through mean for prices?

It means most of the tariff shows up in final prices paid by U.S. buyers. Importers rarely absorb the duty for long. They either lift prices or cut promotions. Over time, margins and tags adjust so consumers and business customers carry nearly all the cost.

How could this affect Canadian stocks?

Slower U.S. spending can trim sales for Canadian exporters. Import-reliant sectors may guide cautiously on margins. Companies with flexible sourcing, strong cash flow, and service revenue often defend profitability better. Watch earnings calls, gross margin trends, and commentary on pricing, inventory, and demand elasticity.

Which sectors are most sensitive to tariff pass-through?

Retail, autos, and machinery are sensitive, given imported inputs and price competition. Consumer electronics and apparel often react quickly as promotions change. Industrial equipment may see delayed orders. Firms with pricing power and diversified suppliers usually handle cost shocks better than those with single-source exposure.

How should investors manage currency risk around tariffs?

Match currency of revenues and costs where possible, and consider partial CAD-USD hedging. Favour companies that disclose natural hedges through local sourcing. Monitor CAD moves, as a stronger or weaker dollar can offset or amplify tariff-driven costs and reported earnings for Canadian-listed names.

Global Market Insights

January 23: Americans Pay 96% of Tariffs, Study Warns of Cost Pass-Through

ByDanny Kontos January 23, 2026January 23, 2026

Americans paying tariffs is back in focus after a new study found U.S. buyers absorbed 96% of the 2025 tariff costs. The finding signals near-total tariff pass-through to prices. For Canadian investors, this matters because higher U.S. prices can slow demand, compress margins, and shift supply chains. We see risk for import-heavy sectors like retail, autos, and machinery. Policy uncertainty around Trump tariffs adds volatility, so we outline what to watch and how to position in CAD.