TARIFFS - FOR THE LAYPERSON

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On March 8, 2018, President Donald Trump imposed tariffs of 25% on imports of steel and 10% on imports of aluminium, but made an exception for Canada and Mexico. This exception was removed effective May 31, and all imports of steel and aluminium from Canada became subject to these tariffs.
On June 15, 2018, President Trump approved a plan to impose 25% tariffs on imports of goods from China, worth approximately $35 to $40 billion. He has also threatened to impose tariffs on imports of automobiles and auto parts into the US from Canada and other countries.
So what exactly are tariffs? And what does President Trump intend to achieve? Finally, what is Canada's plan to retaliate?
In simple terms, tariffs are taxes levied on products entering a country from a foreign country. So the US government will charge 25% tax on any steel entering US from Canada. For example, if steel made in Hamilton, ON was originally sold for $600/tonne, the producer will have to pay $150/tonne to US customs. The producer will likely pass on some or all of this additional tax to the end consumer, thus raising the price of steel in the market.
In most cases, and in the short term at least, the only ones to suffer are the end consumers.
What does Trump wish to achieve? Well, he wants to push up the price of Canadian-made steel, to make local-made steel more attractive for US customers. His goal is to get companies to use less Canadian-made steel (and aluminium) and choose US-made steel (and aluminium).
Smart idea, except it harms US steel and aluminium consumers if they can't find the same quality steel and aluminium made in US. Consumers of steel and aluminium (such as producers of canned products, car manufacturers, appliance manufacturers, etc), have no choice but to pay extra for Canadian-made steel. These manufacturers will then raise prices of their final product (cars, refrigerators, cans, etc) to keep up their profits, and who suffers eventually? You guessed it. The common person on the street.
Canada has promised retaliatory action effective July 1, 2018. Based on the Department of Finance website's list:
Canada's list includes not only a 25 per cent tariff on steel and aluminum products, but also a 10 per cent surtax on an eclectic mix of more than 120 consumer goods, includingdishwashers, fridges, washing machines, pens, beer kegs and even toilet paper. The goods add up to $16.6 billion worth of U.S. imports. 
US producers will have to pay additional taxes to Canada customs on the above products, but will pass on those taxes to end consumers by raising prices. We Canadians don't have many alternative options to our favorite brand names (because of our over-reliance on US made products), so we will have no option but to pay more.
Brace yourselves Oh Canada for the upcoming inflation!
Fortunately, there are some products where we can make alternative choices.
Check this Macleans article on which household items will see a price increase starting July 1, 2018 and what alternative options we have available.
For instance, time is up for Heinz Ketchup, choose French's instead. No more Florida made Orange Juice, go for Minute Maid instead. Why buy Hershey when you can indulge in Toronto-made KitKat (tastes much better anyway!)
If you can take a principled stance as an individual and within your family, you should be able to weather the storm ... to some degree I guess.

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