U.S. Trade Tariffs & Canadian Retaliatory Measures
The recent announcement of 25% tariffs by the U.S. administration, along with potential Canadian retaliatory measures, poses a serious threat to our industry. These tariffs will drive up operational costs, disrupt supply chains, and put jobs at risk on both sides of the border. Canada’s response will also have a significant impact on our industry: the full list of targeted goods can be found here, including tomatoes, orange juice, coffee, alcohol and food packaging.
Restaurants Canada is working closely with the federal government to address industry concerns, highlighting our sector’s role as the fourth largest private sector employer and its significant impact on industries like agriculture. We are urging policymakers to exempt food and food packaging from retaliatory tariffs to avoid further inflationary pressures on essential goods. The $120 billion food service industry, employing 1.2 million Canadians, cannot withstand further cost increases after enduring years of pandemic and inflationary pressures.
We are also calling on the government to prioritize job retention should the trade dispute lead to major job losses. Wage support programs, rather than immediate EI measures, would help businesses sustain employment and support economic recovery.
We are meeting with key cabinet ministers early this week to discuss the impact of these tariffs and explore mitigation strategies. We are also working with provincial governments to break down interprovincial trade barriers, ensuring Canadian businesses have more options to source products domestically. In provinces like Ontario and British Columbia, we’re discussing the financial impact of the US product ban and pushing for larger wholesale alcohol discounts to offset rising costs.
We will continue to keep you updated as this situation evolves. Your insights and feedback are crucial—please be sure to participate in surveys we share over the coming weeks to help us in our advocacy efforts.
Kelly Higginson
