Autos and steel aren't the only targets
Much of the attention in the ongoing Canada-U.S. trade dispute has centred on autos and steel, two sectors with deep, decades-old cross-border supply chains. But trade experts are now flagging a quieter risk: rising tariffs on the physical components that power artificial intelligence systems, along with everyday electronics like smartphones, laptops and video game consoles.
Why AI hardware is exposed
AI infrastructure depends on a tightly interconnected global supply chain — semiconductors, memory chips, servers and networking equipment that often cross the Canada-U.S. border multiple times before ending up in a finished product. Tariffs applied at any stage of that chain can compound, meaning the final cost increase to consumers and businesses can be larger than a single tariff rate might suggest. That has implications not just for tech companies building AI products, but for everyday Canadians who rely on cloud services, smart devices and connected apps that run on this hardware behind the scenes.
Cellphones and consoles could cost more too
Beyond AI-specific hardware, everyday consumer electronics are also caught in the crossfire. Cellphones, laptops and gaming consoles are largely assembled using globally sourced parts, many of which pass through the U.S. before reaching Canadian retailers. If tariffs raise the cost of those components, retailers may have little choice but to pass at least part of the increase on to shoppers — meaning Canadians could see higher price tags the next time they're due for a phone upgrade or eyeing a new console for the holidays.
What this means for Ottawa shoppers
While the tariff dispute plays out at the national level, the effects will be felt locally. Ottawa is home to a significant tech workforce, particularly in Kanata North, where companies work directly with the kind of hardware — networking equipment, chips, servers — most exposed to these tariffs. Higher input costs for local tech firms could ripple into hiring, procurement and product pricing decisions in the capital's tech corridor. And for everyday consumers in the city, it could mean holding onto that aging phone or laptop a little longer, or budgeting for a bigger price tag when it's finally time to upgrade.
What comes next
Trade experts say the situation remains fluid, with tariff rates and exemptions subject to change as negotiations continue. For now, the message to Canadian consumers and businesses is to expect uncertainty — and possibly higher prices — on tech purchases in the months ahead, even as most public attention stays fixed on the auto and steel sectors.
Source: CBC News
