Government’s decision to exempt food from new retaliatory tariffs will protect Canadian jobs, food affordability

While Canada still faces significant challenges from U.S. tariffs, Restaurants Canada is pleased by the federal government’s decision to exempt food from any additional retaliatory tariffs. This will help the foodservice industry regain some much-needed stability and protect the 1.2 million Canadians it employs amid the current economic uncertainty.

“We appreciate the federal government’s and Prime Minister Carney’s willingness to listen to us on this issue,” said Kelly Higginson, Restaurants Canada President and CEO. “Our food supply chains are highly integrated, and many food items we import from the U.S. are not available from other sources in the quantities or timeframes required for our industry. As a result, the impact would have been felt entirely on our side of the border.”

In consultation with the government on Canada’s response to U.S. tariffs, Restaurants Canada shared a list of 39 priority items, including food, food-safe packaging and cleaning supplies, that are critical for the foodservice industry and can’t be easily procured domestically or from other markets.

In addition, Restaurants Canada has advocated for support measures that will mitigate impacts of a prolonged trade dispute with the U.S.:

• Permanently exempting all food and alcohol from GST/HST
• A wage subsidy program to keep employees connected to their workplaces and prevent job losses
• Eliminating interprovincial trade barriers to strengthen the Canadian economy and reducing additional costs and regulations
• 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

“There is still a lot of uncertainty for our industry and many others following yesterday’s announcement from the White House,” added Higginson. “So far, the government has shown its commitment to take a nuanced approach that minimizes the impact on Canadians, which is a good thing.”

Media Contact:

Milena Stanoeva, Restaurants Canada | 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 nearly $120 billion industry employing 1.2 million Canadians and is the number one source of first-time jobs in Canada.