US-Canada Tariff War May Raise Household Costs, Rewards Credit Cards Offer Relief

The US and Canada have engaged in a tariff war that may cause price increases for American households. On August 22, the United States imposed tariffs on Canadian goods, which led to Canada imposing new tariffs as high as 50% on select U.S. goods. The total value of imports affected by these tariffs is $27.6 billion from the US.

According to a Federal Reserve study, when tariffs are implemented, price increases are felt slowly over time rather than a one-time price spike. A separate Federal Reserve study found that impacted goods became 3.1% more expensive, raising the total cost of households by 0.8%.

To mitigate these price increases, American Express recommends using rewards credit cards. The Blue Cash Preferred Card from American Express earns 6% cash back at US supermarkets on up to $6,000 per year in eligible purchases. This can help reduce any price increases faced by consumers.