Restaurants Canada statement on U.S. tariffs and Canadian counter-tariffs

Restaurants Canada condemns the U.S. government’s unjustified tariffs on Canada and supports federal and provincial governments in defending Canadian interests. A tariff war will hurt businesses and workers on both sides of the border.

Restaurants are a major driver of the Canadian economy and the fourth largest private sector employer, contributing $120 billion annually and employing 1.2 million Canadians. Our industry supports local economies in every community across the country. We have been and will continue working with governments on crafting a Canadian response that protects Canada while minimizing the impacts on our economy.

We applaud recent efforts by the federal government and Nova Scotia, Ontario and British Columbia in reducing interprovincial trade barriers, and we urge other governments to follow their lead. A strong internal trade infrastructure will lead to more product availability, innovation and stability for the Canadian economy.

Food is essential and we continue to ask the Canadian government to consider exempting a limited number of specific food items and food packaging from its retaliatory tariff response. Without that exemption prices will increase and hurt Canadians already dealing with affordability challenges. It will also lead to job loss in the foodservice industry.

We also urge the federal government to exempt all food from sales tax, as it did during the GST/HST holiday. The two-month period led to unprecedented job growth in our industry—making it permanent would support Canadian job stability and bolster economies across the country. It is an important affordability measure that is good for Canadians, good for workers and good for business.

If the government can’t exempt critical food and food-safe packaging from tariffs, it can soften the blow for the foodservice industry by:

• Providing manufacturing credits to enable food and packaging manufacturers to expand production quickly.
• Loosening regulations around packaging requirements from out of country products that may be substitutes for American-made products.
• Rolling out a wage subsidy program to keep employees connected to their workplaces and prevent job losses. 

Provincial governments can also help the restaurant industry weather the removal of U.S. liquor from provincial liquor board shelves by deepening alcohol wholesale discounts and making it easier to buy wine and other products across provincial lines.

— Richard Alexander, Executive Vice-President, Government Relations and Public Affairs, Restaurants Canada

Media Contact:

Milena Stanoeva | media@restaurantscanada.org | 647-921-1758

About Restaurants Canada

Restaurants Canada is a national, not-for-profit association advancing Canada’s diverse and dynamic foodservice industry. Restaurants are a $120 billion industry employing nearly 1.2 million Canadians and is the number one source of first-time jobs in Canada.