From cellphones to gaming consoles and artificial intelligence infrastructure, experts say the escalating trade war between Canada and the United States will mean higher costs for consumers and businesses.

Canada exported more than $4 billion US worth of electronics equipment to the U.S. last year that would now be subject to U.S. President Donald Trump’s new 50 per cent tariffs on a wide range of goods. Certain electrical boards and controllers represent the highest dollar value of any export category targeted by the new U.S. levies. 

On Saturday, Prime Minister Mark Carney said Canada would match the Trump administration’s tariffs dollar for dollar.

Experts say higher prices are a virtual certainty, as the escalating trade dispute threatens businesses on both sides of the border.

Carol McGlogan is president and CEO of Electro-Federation Canada, an industry group representing more than 230 companies in Canada’s electrical and automation sector.

“The 50 per cent tariffs are devastating,” she said on Monday, adding that 90 per cent of her member’s exports go to the U.S.

“Increases in pricing are going to increase the cost of homes, schools, [and] buildings,” McGlogan added. 

“We know that we need to double the size of the [electricity] grid between now and 2050 … with the tariffs going both ways, we have just increased the cost of that for everyone, and that ultimately comes out of the taxpayers pockets.”

Evan Light, an associate professor at the University of Toronto, says items like gaming consoles and cell phones have been rising in prices for some time now due to chip shortages and supply chain issues. He predicts the recent escalation in the Canada-U.S. trade war will make these items even pricier.

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“In the short term, I think it’s going to be pretty terrible for everybody,” he said. “I think we’ll see a lot of costs being passed on.”

“We’ll see it in increased prices of the devices that we buy,” he added.

Ottawa-based Kinaxis makes software that companies use to manage their supply chains. Chief product officer Andrew Bell says many clients are using the company’s programs to evaluate new suppliers.

“While the tariffs may initially start by being applied to supply chains, that’s not where it stops. It ultimately stops at the person who is consuming or buying the product,” he said.

Will tariffs slow AI adoption?

Bloomberg News recently reported that Nvidia, one of the world’s most profitable companies, has warned its customers to expect an up to 15 per cent price bump for its prized artificial intelligence chips.

“Supply chain challenges, whether they be tariffs or other disruptions, can limit or constrain … supply. The result is an increased cost for those components,” Bell said. “That is what we are seeing, and companies like Nvidia are seeing.”

University of Toronto professor Light wonders if the trend towards higher prices could ultimately slow AI adoption and deployment.

“It almost gives us an opportunity to gut-check whether or not we want to buy full on into the AI space as much as we have, given that the expense will be multiplied in the U.S. and in Canada,” he said.