The United States is expected to impose 25% tariffs on Canada tomorrow, March 4, which will prompt Canada to respond in kind.

March 3, 2025 Share on your social channels

Tariffs

The United States is expected to impose 25% tariffs on Canada tomorrow, March 4, which will prompt Canada to respond in kind. Restaurants Canada has been actively involved in addressing this issue since late November, and our engagement has only intensified as the situation has become more pressing over recent weeks.

In preparation, we have had discussions with all levels of government regarding the impact on our industry. As a major employer in Canada, our sector plays a vital role in communities and constituencies nationwide, and our needs are critical.

Just last week, we saw positive developments on a long-standing issue that we’ve been advocating for, interprovincial trade barriers and their impact on costs and access to supply across the country. You can find more details on this in our recent statement and our full assessment of the barriers here.

Please rest assured, we will remain highly focused on this evolving matter. Richard Alexander, our Executive Vice President of Government and Public Affairs, will provide more insights below on our ongoing work regarding tariffs, including his upcoming trade mission to Washington with the Canadian Chamber of Commerce.

If you didn’t catch our webinars on tariffs, you can watch them here.

Immigration: Cooks added to 2025 Express Entry categories

Last week, Immigration, Refugees, and Citizenship Canada (IRCC) announced the 2025 Express Entry categories. Cooks were added as a new occupation under the Trades category, which is one of four priority categories. The occupations included in the Express Entry system are usually ones in which workers in Canada are not available, and that require immigration to fill key labour gaps.

This is a very positive development. Restaurants Canada has been advocating for the labour force needs of the foodservice sector with all levels of government, including keeping immigration streams open for our industry. We will continue to work on this file and keep you updated on any developments.

Harnessing the Power of Our Industry

In challenging and uncertain times, it’s essential to remember the immense strength of our industry and the impact we can make when we come together. This is one of the driving forces behind my excitement in bringing Chef José Andrés to the RC Show 2025. If you haven’t yet, be sure to register for the event and secure your ticket for this exclusive closed gathering here.

Celebrating International Women’s Day 2025

As we hit March, we’re excited to once again celebrate and amplify International Women’s Day (IWD) 2025, under the powerful theme of #AccelerateAction. This is a time to reflect on the importance of community and solidarity, especially during challenging times. Together, we can fast-track progress toward gender equality.

Join us on March 10th for our inaugural event, dish., where we’ll be celebrating IWD 2025 and working together to #AccelerateAction.

With the World Economic Forum’s report stating that, at the current pace, gender parity won’t be achieved until 2158—five generations from now—this year’s theme underscores the urgency of tackling the systemic barriers and biases women face in both personal and professional environments.

Let’s unite to accelerate meaningful change. Together, we can create a more equitable world for everyone. Purchase your ticket today!

We look forward to expanding this event across the country in time.

Restaurants Canada’s February board meeting

I was pleased to host our February board meeting in Toronto last week. It’s an important opportunity to share progress, report on priorities, and engage with our board comprised of industry leaders from across Canada. Mark your calendar for our virtual AGM on March 26th from 12:00pm to 12:45pm EST, where we’ll introduce new Directors and a new Chair from Quebec. A notice of the AGM will be sent to members this week with more details.

GOVERNMENT RELATIONS & PUBLIC AFFAIRS UPDATE

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

Donald Trump’s Tariffs Set for March 4th

On March 4th, President Trump plans to implement sweeping tariffs: 25% on Canadian goods and 10% on energy exports. In response, Minister Joly has announced Canada’s intention to impose counter-tariffs on $155 billion worth of American imports. Canada is the only country to publicly outline such a retaliation plan. If these tariffs proceed, numerous products vital to our industry will be affected.

Industry Impact & Our Advocacy Efforts

Restaurants Canada, in collaboration with industry partners, continues to push for exemptions on critical food products, including:

Lettuce
Tomatoes
Potatoes
Food-safe packaging

Our core argument: Food is essential. Unlike an automobile purchase, food consumption cannot be deferred. These tariffs will disrupt restaurant operations and drive-up costs for both businesses and consumers.

Through our involvement in the Canada-US Trade Council and the Coalition for North American Trade, we have engaged directly with high-ranking trade negotiators and advisors. Their message is clear: If US tariffs proceed, Canada’s goal will likely be to drive inflation in the US as high and as fast as possible. This strategy aims to create domestic opposition to the tariffs, applying pressure through rising costs and market reactions.

Mitigating the Impact

While economic pain may be unavoidable, Canada’s approach seeks to minimize its duration. In addition to lobbying against harmful tariffs, we have also advocated for:

A wage subsidy program to keep employees connected to their workplaces and prevent job losses.
The removal of interprovincial trade barriers to help businesses adapt and recover.
Manufacturing credits to enable food and packaging manufacturers to expand production quickly.
Loosen up regulations around packaging requirements from out of country products that may be substitutes for American made products.

Upcoming Advocacy Actions

This week, we will be in Washington, D.C. for a Tariff Trade Mission, collaborating with other business associations to push back against these damaging policies. This trade mission will help garner support from US Congress and Senate members, build ties with other allies in the US and ensure conversations about tariffs in Washington include considerations for the restaurant industry on both sides of the border.

Restaurants Canada is working closely with the Retail Council of Canada, Canadian Chamber of Commerce, and the Canadian Produce Marketing Association to maximize the impact of this trade mission and minimize the impact of potential tariffs.

Key Actions Taken

Nov 24: President Trump announces tariff plans via social media
Dec 10: Engaged with members to assess impact
Dec 20: Sent letter to Finance Minister Dominic Leblanc – who leads Team Canada
Dec 20: Sent letters to all Provincial Premiers
Dec 20: Met with Prime Minister’s Office (PMO) on tariffs
Week of Jan 6: Engaged with opposition parties (Conservatives, NDP, Bloc Québécois) on GST holiday and US tariffs
Jan 17: Joined the Canada-US Trade Committee (CUSTC) – weekly meetings
Jan 30: Call with PMO on tariffs
Feb 4: Meeting with Minister of International Trade’s office
Feb 5: Meeting with Small Business Minister Rechie Valdez
Feb 7: Restaurants Canada attends Prime Minister Canada-U.S. Economic Summit

Feb 11: RC members’ roundtable with Minister Rechie Valdez
Feb 13: Met with Chief of Staff to the Minister of Labour regarding Canada’s aid package

Feb 20: Joined the Canadian launch of the Council for North American Trade
March 4-6: Participating in Washington, D.C. Tariff Trade Mission
Ongoing: Regular ongoing meetings with the National Restaurant Association and U.S.-based Restaurants Canada members

Next Steps

We will continue working aggressively to protect our industry, advocating for policy changes that mitigate the impact of these tariffs. We encourage all members to stay engaged and prepared for potential disruptions.

For further updates, stay tuned to our Tariff FAQ page and reach out with any concerns.

Avian Flu Outbreak & Egg Supply Impacts

Due to the ongoing spread of avian flu (H5N1) across North America, members may be seeing increased media coverage on egg supply shortages and rising costs. Despite this, it is important to note that the Canadian system is not experiencing the same market volatility as the US due to a more diversified and supply managed system.

Impact to Members:

According to Stats Canada, Canadian egg prices with annual CPI the average year over year increase is 3.5%, while egg prices have gone up by 65% in the US since February 2024.

Canada is expected to experience a more moderate price increase of up to 6% nationally this year.
British Columbia, currently the only province facing supply shortages, is expected to see a moderate increase above the national average as it contends with the highest rate of Canada’s chicken culls during this avian flu cycle.

To limit the spread of avian flu, the Canadian Food Inspection Agency (CFIA) has implemented restrictive measures regarding the import of live birds, poultry, hatching eggs, unprocessed bird products and certain fresh poultry items.
The smaller scale and geographical distribution of Canadian egg farms also makes them less susceptible to widespread outbreaks of avian flu.
In Canada, if one region of the country is significantly impacted by an outbreak, eggs production can be increased in other provinces that are not facing avian influenza and shipped to help bolster the local egg supply.

US Situation:

Since 2022, over 150 million birds in the US have been impacted by the spread of avian flu contributing to the loss of a significant portion of the more consolidated egg-laying population.
In response, farmers have had to cull flocks resulting in supply shortages driving up egg prices to record highs.
According to a USDA report, the average price for a dozen eggs reached $7.34 as of February 7. The USDA also warns that prices could continue to rise by an additional 20% throughout 2025.
US farmers have also been under increased pressure due to stricter regulations requiring cage-free environments. Although some states have temporarily lifted these requirements, this has already intensified supply chain shortages and disruptions.

Restaurants Canada is monitoring the situation closely and will continue to keep members informed.

SUSTAINABILITY UPDATE

From Jillian Rodak | Vice President, Sustainability

Evolving Municipal Bylaws Across Canada

Across Canada, municipalities continue to take steps to manage commercial waste and limit single-use plastics by developing new bylaws. To ensure restaurants have a strong voice at the table, Restaurants Canada has been engaging in the following high-priority jurisdictions:

Gatineau, QC: The city is considering various models to reduce single-use plastics (cutlery, plates, stir sticks, etc.), including a ban on certain materials, mandating reuse, and/or mandating eco-fees when selling certain items. The city intends to present these bylaws to the Municipal Council in the coming months and is aiming for implementation in 2026. Restaurants Canada recently met with City Staff and will be following up to share further feedback.
Guelph, ON: A report will be presented to City Council on March 4^th to expand its single-use bylaw to include provisions for reusable containers. In addition to ongoing engagement with the mayor, councilors and city staff, Restaurants Canada will be presenting at the Council Meeting to share sector-specific considerations and concerns related to health/safety, cost, and more.

We will continue to keep members updated as these policy discussions evolve nationwide.

ATLANTIC UPDATE

From Janick Cormier | Vice-President, Atlantic Canada

Prince Edward Island

In a surprise press conference, Premier Dennis King announced his resignation on February 20^th. A day later, Minister of Education and Early Years, Rob Lantz, was sworn in as Premier. The legislature has since been prorogued as the Progressive-Conservatives deal with this transition and organize a leadership race. As interim premier, Lantz has said he plans to bring a steady hand to government during this time. A new session will begin on March 25, complete with a speech from the throne by Lt.-Gov. Wassim Salamoun.

Newfoundland and Labrador

In another stunning resignation, Premier Andrew Furey announced on February 25^th that he was resigning as Premier. Unlike PEI’s Premier King though, Furey will stay on as leader and Premier until a new leader is chosen. This is an election year in Newfoundland and Labrador so we expect the new leader to be chosen relatively quickly.

Nova Scotia

Finance Minister John Lhor presented his budget for 2025. We were pleased to see that the PCs kept their commitment to lower the small business tax rate from 2.5% to 1.5% and to up the threshold to $700,000. Also included in this budget is a reduction of the HST of 1%, increasing the basic personal amount from $8,744 to $11,744, and a $200-million reserve fund to support Nova Scotians through a tariff war with the United States.

On February 25^th, the government also introduced legislation to remove all trade barriers with provinces who also adopt a similar legislation. We were very pleased to see movement on this issue and hope other provinces will follow suit.

CENTRAL CANADA UPDATE

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

Manitoba

This past week I was in Manitoba to meet with government officials and to attend an incredible MRFA-hosted gala.

Government Relations Update

Shaun Jeffrey and I had productive meetings with Justice Minister Wiebe, Municipal and Northern Relations Minister/Minister Responsible for the Manitoba Liquor and Lotteries Corporation Glen Simard, Public and Government Services Minister Sandhu, and with the Mayor of Winnipeg.

Left to right: Kris Barnier, Restaurants Canada Vice-President of Central Canada; Glen Simard, Minister of Municipal and Northern Relations, Minister Responsible for the Manitoba Liquor and Lotteries Corporation; MRFA Board Member Miles Gould; and MRFA CEO Shaun Jeffrey.

I had additional meetings with Tourism Minister Kennedy, and with senior staff representing the ministers of Finance and Business, Trade and Job Creation.

The meetings focused on a set of key issues:

Crime – Crime is a top priority that threatens the physical and financial security of our industry, its patrons, and its employees. We continued to push aggressively in every meeting for the crime grant to be expanded and for funds to be earmarked to ensure restaurant locations can receive up to $3,000 each to help deal with damage caused by crime and keep your businesses, visitors, and employees safe. We stressed concerns and the need for a strategy to deal with violent and repeat offenders. I also connected with the Retail Council and the Association of Manitoba Municipalities for opportunities to work together to push all levels of government to do more.
Financial Stability/Trade War – We stressed that Manitoba’s restaurant industry is already in a crisis that will be made worse by a US trade war. The only measure Manitoba has communicated is a plan to remove US alcohol from its stores, making our industry the only one specifically targeted to absorb the impact of a trade war. We argued that our industry will face higher costs at a time when consumer spending will drop. We urged immediate action on the crime grant, immediate relief on alcohol purchases, funding for training grants, and for the government to consider payroll relief like wage subsidies, WCB premium relief and other measures to help restaurants curb costs and find affordable alternatives to US goods.
Labour – We spoke about the labour shortage in our industry and how it is harming profitability and sustainability. We also talked about high bankruptcies and low/negative margins in our industry, why your business cannot absorb higher costs due to government policies, and why immediate action is necessary to help protect restaurants and employees.

MRFA Gala

It was an incredible night last Thursday, when MRFA inducted the first three members to its Hall of Fame: Doug Stephen – WOW Hospitality (and Past Chair of Restaurants Canada) Steve Hrousalas – Rae and Jerry’s; and Gord Howard – The Keg Steakhouse. Paljor Dolma, Restaurants Canada, Senior Manager, Member Marketing & Engagement and I were on hand for the incredible dinner and wonderful night that paid tribute to three of Manitoba’s most well-known and respected industry leaders. Learn more about the award winners here.

*Former Restaurants Canada Board Chair and MRFA Hall of Famer Doug Stephen addressing the Gala.*

Ontario

Last week, Ontario elected the Progressive Conservative Party to a third straight majority government. In the coming days Premier Doug Ford will announce his new cabinet and we will reach out to key ministers to renew and/or build relationships.

Here is a summary of key commitments made by the PCs that are of relevance to our industry:

An additional 5% reduction on LCBO purchases made by restaurants and bars, taking the discount from 10% to 15%.
Payroll relief, tax deferrals, and additional supports to hardest hit industries in response to a trade war with the US.
Work with other provinces to remove interprovincial trade barriers, including on alcohol.
Expand funding under the Skills Development Program (note Restaurants Canada previously received $1.4M under this program)
Remove the minimum retail price of alcohol products, and keep the beer tax frozen
Funding to fight drug consumption in public spaces and bail reforms targeting dangerous and repeat offenders
Access the entire PC Platform here.

WESTERN UPDATE

From Mark von Schellwitz | Vice-President, Western Canada

BC Announces 2025 Minimum Wage Increase

On February 14^th BC’s Minister of Labour issued apress release announcing that minimum wage would be increasing by 2.6% ($.45) from $17.40 to $17.85 per hour effective June 1^st, 2025. The increase follows the minimum wage CPI indexation formula which was enshrined in the BC Employment Standards Act last spring.

Proposed Changes to Vancouver’s Liquor Serving Hours

After consulting stakeholders, including Restaurants Canada, last year, the City of Vancouver is asking for member feedback on their proposal to modernize the City’s liquor serving hours which have remained unchanged since 2004. The proposed changes also consider opportunities to reduce regulatory licensing barriers. Proposed changes would allow:

All bars, pubs and nightclubs in Downtown to apply to stay open until 3 am every night of the week. These hours are currently permitted in some areas Downtown.
All restaurants in Vancouver that are licensed to serve alcohol to apply to serve until 2 am every night of the week.

Members are encouraged to provide feedback by completing the following survey by March 9^th and can stay updated on developments by signing up for the mailing list.

Western Community College (WCC) Work Experience Host Request

Western Community College (WCC) has reached out to Restaurants Canada asking members to participate as work experience mentors and hosts for their Bachelor of Hospitality Management students. For more information members can review the WCC Bachelor of Hospitality Management Work Experience Handbook. Any members interested in providing work experience for these students should contact WCC’s Director of Hospitality Programs Dhananjay (DJ) Kshirsagar at dhananjay@wcc.ca.

Alberta Budget

On February 27^th Alberta tabled their 2025 budget. Unlike the 2024 budget surplus, the 2025/26 budget projects a $5.2 billion deficit given the economic uncertainty of US tariffs and counter tariffs. The deficit could go as high as $8.7 billion in a worst-case US tariff trade war scenario. The budget projects total revenue at $74.1 billion versus total expenditures of $79.3 billion.

The highlight of the 2025 budget was a sooner-than-promised personal income tax cut creating a new tax bracket of 8% on the first $60,0000 of income effective January 1, 2025. The $1.2 billion tax cut comes two years ahead of schedule and is estimated to save the average Albertan $750 in 2025. The personal income tax reduction further increases Alberta’s competitive advantage as the province with the lowest personal and corporate tax rates in addition to no sales tax.

The budget also includes a few tax increases including an Education Property Tax rate increase from $2.56 to $2.71/$1,000 on equalized assessments for residential and farmland properties as well as a $3.76 to $4.00/$1,000 on equalized assessments for non-residential properties. Licensed members will also be impacted by some adjustments to the liquor markup system, including changes to standard rates and to rates for qualifying small manufacturers. AGLC sent all Alberta licensees the following Liquor Bulletin outlining the liquor markup increase details.

Reminder – City of Edmonton IC&I Waste Strategy Workshops

Edmonton members should have received an invite from the City of Edmonton to participate in upcoming collaborative workshops on organics diversion within Edmonton’s Industrial, Commercial and Institutional (IC&I) sector. You can register for one of two virtual workshops using the following links:

March 3, 2025, 2:00 – 4:00 pm – Register Here
March 12, 2025, 9:00 – 11:00 am – Register Here

For more information, click here.

Thank you for your continued support and I look forward to connecting with many of you in the weeks ahead.