It’s been another tumultuous week for tariffs.

March 17, 2025 Share on your social channels

It’s been another tumultuous week for tariffs. Consumer confidence is at a low, certain regions are facing job losses and slowdowns that will affect discretionary spending, retaliatory tariffs are driving up the cost of U.S. goods and our purchasing power is being challenged with the lagging Canadian dollar. As we enter another period of uncertainty and extreme concern for operators, staying on top of these developments is critical, and Restaurants Canada is committed to keeping you informed on the most important issues facing our industry.

Food in North America is manufactured across national borders. Our industry utilizes many products that have crossed the border several times during their production. The same is true of our restaurants. All brands that operate in Canada and the US purchase from Canadian, US and Mexico producers and employ people in all countries. Locals on both sides of the border rely on our industry for employment.

Despite our differences, the most important aspect of our sector is its significant impact on the social and economic fabric of Canada. We are the fourth-largest private employer in the country, purchasing a significant portion of Canadian agricultural and other products and supporting communities nationwide. I spoke passionately about this at the recent Economic Summit hosted by former Prime Minister Trudeau.

Restaurants Canada will continue to advocate for the entire industry, emphasizing the crucial role we play in Canadian communities. We’re engaging with government officials to address the rhetoric surrounding this and all the other issues facing our industry due to the trade war.

Supporting Canadian Businesses Affected by U.S. Tariffs

In response to the recent tariffs imposed by the United States, the government has unveiled a $6.5 billion support package to assist Canadian businesses facing the consequences of these tariffs. The support includes:

Employment Insurance (EI) Work-Sharing Program: Expanding the EI Work-Sharing Program to cover more types of workers/businesses for a longer maximum period of time.
Business Development Bank of Canada (BDC): Offering $500 million in low-interest loans to businesses affected by the tariffs. These loans are designed to reduce borrowing costs and provide flexible repayment options.
Export Development Canada (EDC): Introducing a $5 billion Trade Impact Program to help exporters access new markets and manage challenges caused by the tariffs, such as losses from non-payment and currency fluctuations.
Farm Credit Canada (FCC): Providing $1 billion in new financing to support the agriculture and food sectors, addressing cash flow issues, and helping businesses adjust to the evolving market conditions.

These measures are aimed at safeguarding jobs, ensuring businesses remain operational, and stabilizing Canada’s economy during this period of uncertainty.

Please see VP, Federal and Quebec, Maximilien Roy’s breakdown for more specifics below.

Mark Carney succeeds Justin Trudeau as Prime Minister

Restaurants Canada expresses its gratitude to former Prime Minister Justin Trudeau for his years of dedicated service to the country. We extend our congratulations to Mark Carney on his election as the Leader of the Liberal Party and Canada’s 24th Prime Minister.

Addressing the current economic challenges requires a unified, strategic approach to ensure the nation’s economic stability and long-term prosperity. We are eager to collaborate with Prime Minister Carney and his new cabinet to support the foodservice sector and the diverse communities that we serve across Canada during this difficult time.

We will continue to advocate for the removal of food products from retaliatory tariffs while also backing the government’s efforts to address this issue. With 70% of Canadians supporting retaliatory tariff measures, it is important to remain sensitive to this sentiment while advocating on this issue. Restaurants Canada has shared its position with the federal government during this consultation period.

Our top 3 asks of the Carney government are:

Exempt all food from sales tax, as was done during the recent GST/HST holiday
No food on the retaliatory tariff list
Address internal trade barriers, specifically;
- Extending direct to restaurants purchasing of Canadian alcohol from Canadian producer, without provincial markup;
- Address transportation barriers to support efficiencies and lower cost of goods;
- Align labor practices with provincial Employment Standards and Occupational Health and Safety regulations to minimize interprovincial red tape and promote consistent employment practices across Canada;
- Harmonize food safety standards, regulations, and inspections including food safety certifications to improve efficiency and costs.

Revitalizing downtowns is crucial for restaurant stability

The second Downtown Revitalization Council meeting took place at BOMA Canada’s offices.

RBC, Restaurants Canada, the Ontario Chamber of Commerce, the Canadian Federation of Independent Business, the Business Council of Canada and the Downtown Yonge Business Improvement Area all contributed valuable ideas to address the critical and often overlooked challenges faced by all urban centers across Canada. Crime, homelessness, addiction, and mental health challenges are directly impacting our members, their businesses, employees, and customers. These issues reduce profitability by discouraging customers, complicating staff recruitment and retention, and increasing absenteeism. They also drive-up insurance premiums, theft-related losses, security costs, and repair expenses.

Our members face the consequences of visitors struggling with homelessness, addiction, and mental health issues. While some engage in criminal behavior, others disrupt business operations or require support that restaurants are ill-equipped to provide.

44% of members in a recent survey reported their businesses have been directly impacted by community safety issues, such as theft, property damage, or vandalism. An additional 27% expressed concern, even without direct impact. 72% of respondents feel these issues have worsened in the past 6-12 months.

In response, 55% have increased security spending, 40% are enhancing staff training, 52% are involving the police, 23% are focusing on staff attraction and retention, 18% are paying higher insurance premiums, 20% are reducing operating hours, 23% are adding physical security measures, and 11% are considering closing or relocating their businesses.

Another area of concern impacting businesses we are discussing is transportation costs and gridlock. They raise the cost of goods and services for businesses and complicate employee recruitment and retention, especially when affordable housing is far from jobs.

Transportation expenses (gas, fares, parking) discourage people from dining out, support ‘work from home’ trends, and deter patrons from enjoying meals before events like shows or sports games. It also keeps people from venturing into downtown areas for dining and entertainment.

We are collaborating to present policies that will tackle these challenges, enhance the quality of life for citizens, and revitalize our urban centers, enabling businesses to thrive.

Connection

dish. debuts with a sold-out event

Our inaugural dish. event celebrating women in the foodservice industry was a roaring success! To view the gallery and re-cap video, click here.

*Photo Credit: Savage Media Group Inc. |* @savagemediagroupinc

A special thanks to Chef Donna Dooher of Mildred’s Temple Kitchen for her insightful words and gracious hospitality. It’s always a privilege to dine and connect with you.

We also appreciate Jocelyn Pepe, MSc., MHC., Fractional Head of Mental Health & Organizational Wellbeing and Founder of TrU, for teaching us the importance of conscious connections. Jocelyn reminded us that, while change is urgent, we must first set the right intention and nurture ourselves. We started the day with breathwork to ground ourselves in the present.

Thank you, Karlyn Percil-Mercieca, Founder & CEO of KDPM Equity Institute and Certified Emotional Intelligence and Neuro-Leadership Coach, for empowering us to D.R.E.A.M. – an acronym that helps women unlock their full potential. Your energy was truly contagious!

Thanks to all the incredible women who filled the room with positivity, vibrance, and powerful energy. Your presence and contributions made this event unforgettable.

Get on the list! Click here to subscribe to dish.

Thank you to our event sponsors, DoorDash, Sysco and AMEX, as well as our product sponsors, Pepsico and Mildred’s Temple Kitchen, for your support in a successful event!

Hospitality Newfoundland & Labrador Conference.

Later in the week I was thrilled to finally get to Newfoundland and Labrador! Given the challenges facing Newfoundland and Labrador’s restaurant sector, it was crucial for Executive VP of Government Relations and Public Affairs Richard Alexander, Atlantic Canada VP Janick Cormier, and me to attend the Hospitality Newfoundland & Labrador Conference. I was pleased to participate in the National Panel to discuss the critical issues facing foodservice and the importance of the work Restaurants Canada is doing.

We also had the pleasure of hosting a members’ reception at the renowned Yellow Belly Pub, owned and operated by former Restaurants Canada Board Chair and long-serving Director Brenda O’Reilly and Craig Flynn. These accomplished entrepreneurs have made a significant impact on the food scene and have earned recognition for their outstanding contributions to the industry. It was a great opportunity to connect with members, especially during such uncertain times. The Newfoundland and Labrador restaurant sector is a cornerstone of the province’s economy, providing 14,500 jobs, generating $1.2 billion in sales, and contributing 3.2% to the provincial GDP—three times the employment provided by the fishing industry.

GOVERNMENT RELATIONS & PUBLIC AFFAIRS UPDATE

From Richard Alexander | Executive Vice-President, Government Relations & Public Affairs

Final thoughts on my visit to Washington, D.C.

Tariff discussions have been heating up in Canada, but they were not a top concern in Washington, DC leading up to March 4. While there was widespread support for free trade with Canada, it wasn’t at the forefront of discussions.

That changed as the week progressed. With the implementation of U.S. tariffs and Canadian counter-tariffs, awareness increased significantly. By week’s end, President Trump paused auto sector tariffs following pressure from the major American automakers. However, for this trade war to end, stronger opposition to tariffs must emerge within the U.S. Unfortunately, based on what I observed in Washington, retaliatory tariffs will likely be necessary to achieve that outcome.

President Trump’s Goal: A Shift in Manufacturing

President Trump appears intent on shifting manufacturing back to the U.S. However, this strategy faces strong opposition. The big three U.S. automakers reportedly warned Trump that such a move would undermine their competitive advantage against foreign carmakers.

Many officials I spoke with believe these tariffs are simply a tactic to set the table and gain more for the U.S. in a future renegotiation of the USMCA (United States-Mexico-Canada Agreement). Notably, Trump’s recent tariff pause only applied to USMCA-approved goods.

Restaurants Canada’s Advocacy Efforts

Finance Canada is currently consulting on the list of retaliatory tariffs, and Restaurants Canada is actively engaged in this process to advocate for our industry’s best interests. With the support of our U.S. Tariffs Working Group, we are preparing a detailed submission that presents strong evidence to support our requests.

Our submission urges the government to remove certain Harmonized System (HS) codes from the tariff list, particularly for:

Produce (e.g., lettuce, onions, potatoes)
Cleaning products
Pulp and paper (packaging materials)

Our arguments are based on two key points:

Tariffs on These Products Are Ineffective: Despite the tariffs, certain U.S. goods remain more affordable than alternatives. As a result, these tariffs do not effectively pressure American producers; they simply raise costs for Canadian businesses and consumers.
Limited Alternative Supply: Some products have no viable domestic or international replacement at the scale, price, and timeline required. This leaves Canadian restaurants and foodservice operators unable to source essential supplies affordably.

This is a critical moment for our industry. Once tariffs are implemented, removing products that harm our sector will become far more difficult. The remaining option for adjustments—the remission order process—is complex and requires individual businesses to apply for exemptions, creating additional burdens.

We are committed to protecting and supporting our industry through these challenges. If there are specific products you believe should be removed from the retaliation list, please share them with us along with supporting evidence. Your input is invaluable and will help strengthen our advocacy efforts.

Key Takeaways from the March 13th Department of Finance Webinar on most recent Canada-US Issues:

Border Security/IEPPA Tariffs: Canadian officials are cautiously optimistic about the meeting between Federal Finance Minister Dominic LeBlanc, Ontario Premier Doug Ford, and US Secretary of Commerce Howard Lutnick, as it is seen as crucial for future relations.

Dairy Tariffs: Concerns were raised about President Trump’s 250% tariff threat on Canadian dairy. Officials view this as a bargaining tactic but will not act unless concrete measures are taken by the US.

Canadian Federal Relief Funding: Regarding tariff-hit businesses, officials pointed to the $6 billion relief announced last week.

Steel, Aluminum, and Copper:

Canada’s $29.8 billion in retaliatory tariffs on US steel and aluminum took effect, in addition to the $125 billion in tariffs under consultation ahead of the April 2 implementation date.
Canada will respond dollar-for-dollar to any new tariffs announced.
The $29.8 billion tariff list matches the US’s 25% steel and aluminum tariffs.
Copper tariffs could be implemented as soon as April 2, with a report due to the US cabinet on April 1.
US importers are reportedly in chaos over these tariffs, showing a significant impact on US companies.

Reciprocal Tariffs (April 2): Port authorities raised concerns about import duties based on the vessel’s origin instead of the product’s origin. Canadian officials are investigating this issue.

Caretaker Convention: If an election is called, the Department of Finance will continue updates via weekly webinars. Tariff remission processes may face delays under the caretaker convention, but the timeline is uncertain.

Other Notes:

The CBSA’s product definitions are used for tariff enforcement.
No overlapping tariffs have been reported.
Non-tariff measures, like the US alcohol tariff, may affect tariff estimates (e.g., US alcohol may not generate tariffs due to provincial bans).

SUSTAINABILITY UPDATE

From Jillian Rodak | Vice President, Sustainability

PFAS Reports & Consultation

Earlier this month, Environment and Climate Change Canada (ECCC) published their updated State of per- and polyfluoroalkyl substances (PFAS) report and Risk Management Approach for PFAS, concluding that PFAS are toxic and harmful to both the environment and human health. PFAS encompass thousands of substances used in a wide range of applications, including coatings for food packaging and non-stick cookware.

ECCC has opened a public comment period on these reports, which will close on May 7, 2025. Following this, risk management measures will be implemented in three phases, each including additional consultations:

Phase 1 (concluding Spring 2027): Focused on firefighting foams.
Phase 2 (beginning 2027): Addressing various products, including food packaging materials, food additives, and non-industrial food contact products (e.g., paper plates, bowls, and cups).
Phase 3 (timeline TBD, following Phase 2): Includes industrial food contact material.

Restaurants Canada will collaborate with members to submit feedback and actively participate in consultations to ensure the industry’s concerns are heard.

Launch of Federal Plastics Registry Reporting Platform

Earlier this month, ECCC launched it’s online reporting platform for the Federal Plastics Registry, requiring certain businesses to report data on the production, use, and management of plastic products in Canada including packaging and single-use products. The first phase of reporting is due September 29, 2025 (based on 2024 data). Businesses subject to reporting requirements should review ECCC’s guidance document for details on compliance and data submission processes.

Guelph Municipal Engagement

On March 4^th, Restaurants Canada presented at Guelph City Council as they considered expanding the single-use bylaw to include reusable containers. We shared industry concerns related to health and safety and costs. Restaurants Canada will continue to engage with City Council in advance of further decisions later this month to ensure industry perspectives are heard.

FEDERAL UPDATE

From Maximilien Roy | Vice-President, Federal & Québec

What’s Happening in Ottawa?

The Liberal Party of Canada’s leadership race has wrapped up, with Mark Carney securing a decisive victory. His election follows Prime Minister Trudeau’s resignation and the start of President Trump’s second term—two seismic shifts that have reshaped Canadians’ political priorities. While polling firms differ on the details, the overall picture points to a highly competitive race between Pierre Poilievre’s Conservatives and Carney’s Liberals.

Managing Canada’s relationship with the Trump administration has quickly emerged as a top concern for voters, alongside ongoing worries about affordability and inflation. An election call is expected imminently with the campaign likely to be the shortest legally allowed at 37 days. Concerns over immigration, sustainable development and healthcare will most likely be raised as well, but we don’t expect them to be central to the election.

Once elected, the new government will need to act fast. A cabinet appointment and a swift recall of Parliament—likely in early May—will be critical to ensuring Canada has the tools and resources necessary to navigate a trade dispute with the U.S.

See our most recent update on the latest tariff information here.

Threats of US Tariffs: Take Advantage of Canada’s Work-Sharing Program

Restaurants Canada has urged the government to focus on providing relief to Canadians while preserving the relationship between employers and employees. The government has now announced the expansion of the EI Work-Sharing Program.

The program helps businesses avoid layoffs when there is a temporary reduction in business activity beyond their control by allowing employers to reduce employees’ hours and supplement their lost wages with Employment Insurance (EI) benefits. This program ensures that businesses can maintain a trained workforce while avoiding the costs of recruiting and retraining staff when business picks up again.

To participate in the Work-Sharing Program, businesses must:

Be a legally registered business in Canada operating for at least one year.
Demonstrate a temporary decrease in business activity beyond their control.
Have at least two employees in the agreement who are essential to business operations.
Submit an application at least 10 days before the intended start date.

To learn more about eligibility requirements and the application process, visit the Government of Canada’s Work-Sharing Program page or contact your nearest Service Canada office. We encourage you to explore this program as a means to support your workforce while the threat of US Tariffs goes on.

ATLANTIC UPDATE

From Janick Cormier | Vice-President, Atlantic Canada

Prince Edward Island

We have learned that PEI quietly limited access to the Atlantic Immigration Program to workers in the healthcare, construction, and manufacturing sectors.

Eligible candidates in other sectors, such as our industry, are encouraged to submit an Expression of Interest profile for consideration under the Provincial Nominee Program instead.

We will continue to advocate for the federal government to reverse their cuts to immigration streams which are causing provinces to restrict who can access these economic immigration streams. We know that our industry relies heavily on labour and that we need these skilled workers in our establishments.

Newfoundland and Labrador

While attending the Hospitality NL conference, our EVP Richard Alexander and I were able to have meetings outside of the conference. Along with our Chair of the Board, Jeremy Bonia, we met with a group of operators who have been pushing various provincial ministers on a few issues for our industry, such as access to capital, wholesale discounts on alcohol, and labour shortages. We will continue to work together to get real tangible policy change to help our industry get through these difficult times.

Following our conversation with local operators, I met with an old friend, Councillor Greg Noseworthy, and discussed the issue of patio license fees and the expected property tax increase. Did you know that patio license fees are over 5 times higher in St. John’s than they are in Toronto? We will continue to bring awareness to these issues and push council to lower the patio license costs.

We know that the rising costs of operations are having a negative impact on our members. We will continue to push all levels of governments to put in place policies that will help our industry not just survive, but thrive.

CENTRAL CANADA UPDATE

From Kris Barnier | Vice President, Central Canada and the North

Manitoba

Budget – The Government of Manitoba will present its Budget on March 20^th. Working alongside MRFA, we’ve aggressively pushed for financial support to help Manitoba restaurants and bars cover damages caused by crime and to pay for security technologies and devices necessary to help you protect your businesses, patrons, and staff. I also expect the government will begin to outline steps it will take to help businesses protect jobs and stay open as the US trade war persists and/or escalates.

Convenience Stores and Liquor Sales – Manitoba has introduced legislation that, if passed, will prohibit convenience stores from selling liquor. More here.

Support for Rural Communities for Safety – The Government announced $200,000 for a series of initiatives that include police training, lighting in parks and support for at-risk youth, and new equipment for police. More here.

Ontario

New Ontario Cabinet – After securing a third majority government, Premier Ford and his new cabinet were sworn in last Wednesday. Once appointed, we will renew and strengthen relationships with key ministers who return to the same portfolios, and we will build relationships with new ministers who take on roles and responsibilities of interest to Restaurants Canada. I expect the government will soon after announce the date for the next budget and will also begin to roll out key pieces of its response to the U.S. led trade war, which we expect will include following through on its commitment to increase the LCBO licensee discount from 10% to 15%.

Yukon

Provincial Budget – As part of its Budget, the government announced a $1M fund to develop a support program to help businesses impacted by potential US trade decisions, along with a $75M contingency fund to help respond to US trade war-related challenges and other threats. See more here.

Minimum Wage – The Province announced that the minimum wage will increase from $17.59 to $17.94, effective April 1, 2025. For more information, see here.

WESTERN UPDATE

From Mark von Schellwitz | Vice-President, Western Canada

Alberta, Saskatchewan, and British Columbia, Suspend all US liquor Purchases

Alberta

On March 5^th Alberta Premier Smith announced Alberta’s response to US tariffs and directed Alberta Gaming, Liquor and Cannabis (AGLC) to suspend the purchase of US alcohol, slot machines and video lottery terminals (VLTs) from American companies. Effective March 6^th AGLC removed US liquor products from the central Connect Logistics Services (CLS) warehouse. US liquor products will be shown as “out of stock” and will be unavailable for licensees to order. However, retailers and licensees will be able to continue selling their remaining stock of US liquor products. AGLC issued the following suspension of US made liquor bulletin March 5^th providing details.

Saskatchewan

On March 5^th Premier Moe also announced that Saskatchewan would join other provinces in directing the Saskatchewan Liquor and Gaming Authority (SLGA) to suspend purchases of all US produced liquor products. Saskatchewan retailers and licensees will no longer be able to purchase US produced liquor products from SLGA’s Distribution Center. This includes core listings and special-order products. However, retailers and licensees will continue to be able to sell their inventory of US liquor products. SLGA has also been directed to source from other suppliers the $43 million of VLT and slot machines that are currently procured with US companies.

British Columbia

Further to the March 4^th purchase ban on red state liquor product, on March 10^th Premier Eby announced that he was immediately expanding the ban to include all US liquor products in response to further US tariff threats on Canadian dairy and lumber. All US made liquor products will immediately be removed from BC Liquor Store shelves. However, US liquor branded products that are manufactured in Canada are exempt from the ban. Licensed members will continue to be able to sell US liquor products until their inventory is depleted and members will still be able to purchase US liquor products by the case from BC Liquor Stores until their inventory is depleted. The following bulletin provides further details of the expanded US liquor product purchase ban.

Saskatchewan Food Safety Regulation Amendment Consultation

On March 5^th Restaurants Canada and Retail Council of Canada (RCC) received an initial presentation on proposed Food Safety Regulation amendments initiating a public consultation process. Restaurants Canada and RCC requested amendments last summer after learning that Saskatchewan’s Food Safety Regulation was out of step with other provinces in not allowing any food to be displayed at ambient temperatures (assuming a food safety plan is in place for food kept at ambient temperature for limited time periods of 2-4 hours). The proposed Food Safety Regulation amendments include ambient-temperature food and requiring all food-handling staff to have food safety training.

Saskatchewan members are encouraged to provide their input to the consultation process by completing the engagement survey by April 2^nd. Please provide your thoughts on the amendments to Restaurants Canada to inform our feedback prior to April 2^nd. Should you have any questions on the proposed Food Safety Regulation amendments, please feel free to contact the Population Health Branch at (306) 787-8847.

Restaurants Canada participates in ABLE Spark Conference & BC Tourism Roundtable

On March 5^th I participated in the annual BC Alliance of Beverage Licensees (ABLE) Spark conference moderating a panel on the Changing World of Work. I also participated in a BC Tourism Industry Conference Roundtable with BC’s Tourism Minister Chandra-Herbert. Both conferences provided an opportunity for Restaurants Canada to share policy concerns with our hospitality industry partners.

Restaurants Canada Meets with new BC Public Safety Minister & Solicitor General

Restaurants Canada had an introductory meeting with BC’s new Public Safety Minister & Solicitor General along with his Deputy Minister and Liquor & Cannabis Regulatory Branch (LCRB) ADM. I provided the Minister with a State of the Industry update and raised budget, labour, retaliatory tariff, liquor policy, and crime and safety policy concerns. Participating BC RC directors did a great job articulating how rising crime & safety challenges impact their staff and business operations.

Don’t miss the RC Show 2025! Get ready for 3 exciting days of inspiration, education, and solutions to fuel your passion. Celebrate the 80th RC Show with live competitions, industry leaders, and game-changing innovations. Plus, don’t miss our 2025 Keynote, José Andrés—chef, humanitarian, and two-time Time “100 Most Influential People” honoree!

Seats are limited. Tickets are $80 + HST, available only to registered RC Show pass holders. Register here. Chef José tickets here.

Looking forward to seeing you there!

My gratitude for your support and dedication to the foodservice community.