U.S. Tariffs and Canadian Retaliatory Measures: What this may mean for your business
Updated: March 11, 2025
Click here for a List of U.S. goods currently subject to tariffs
On March 4, 2025, the U.S. imposed 25% tariffs on Canadian goods and 10% on energy exports. In response, the Canadian government has imposed counter-tariffs on $30 billion worth of American imports, with another $125 billion to be imposed in three weeks’ time. While the U.S. has now paused its tariffs on CUSMA-compliant goods until April 2, Canada will not lift its retaliatory measures until all U.S. tariffs are eliminated. 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 a select list of critical food products, including:
- Lettuce
- Tomatoes
- Potatoes
- Food-safe packaging
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:
- Exempting all food from sales tax, as it was during the GST/HST holiday.
- 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.
- Loosening regulations around packaging requirements from out of country products that may be substitutes for American-made products.
Our Work
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 have joined the Canada-U.S. Trade Council, a group of industry associations and organized labour across impacted sectors to share information and develop policy recommendations.
Last week, we were in Washington, D.C. for a Tariff Trade Mission, collaborating with other business associations to push back against these damaging policies. This trade mission helped 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.
We are also meeting with key cabinet ministers and provincial governments to discuss the impact of these tariffs and explore mitigation strategies, including removing interprovincial trade barriers, so Canadian businesses have more options to source products domestically. We’re discussing the financial impact of bans on U.S. alcohol products with provinces and pushing for larger wholesale alcohol discounts to offset rising costs.
We will continue to keep you updated as this situation evolves. Please see below a list of FAQs and resources to help guide our industry through this uncertain time.
Related News:
The View From Washington: Richard Alexander’s Blog from the Tariff Trade Mission to Washington
Restaurants Canada statement on U.S. tariffs and Canadian counter-tariffs
List of products from the United States subject to 25 per cent tariffs effective March 4, 2025 – Government of Canada Website
FAQs
As of March 4, the Canadian government is levying 25% retaliatory tariffs on the following U.S. food products that directly affect the foodservice industry:
- Fresh and frozen poultry
- Fresh produce (including leafy greens, berries, peppers, tomatoes, and onions)
- High proof spirits and wine
- Canned and frozen fruits and vegetables
- Processed seafood
- Juices
- Boxed beef
- French fries and sweet potato fries
- Tortillas
- Dressings
- Glass and counter cleaner, dishwasher chemicals, and bleach
A full list of targeted goods can be found here.
The government will expand tariffs to an additional $125 billion worth of goods if U.S. tariffs are not lifted by April 2, 2025. The expanded list can be found here.
All provincial and territorial governments have stopped purchasing U.S. alcohol products and all except Alberta and Saskatchewan have removed current inventory from public liquor board sales. Provinces and territories are also excluding U.S. companies from new procurement agreements and potentially cancelling existing contracts.
Restaurants Canada has urged the government to provide wage support to impacted workers as it did during the pandemic, in order to protect Canadian jobs. The federal government has now expanded the EI Work-Sharing Program to cover more types of businesses and workers for a longer maximum duration.
The Work-Sharing Program allows employers to reduce employees’ hours in response to an unexpected reduction in business activity and use EI benefits to offset lost wages. 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.
Canadian Resources
WEBINAR: As negotiations between Canada and the U.S. continue, how can your business prepare for potential trade shifts, new tariffs, and retaliatory measures?
Ontario Made products right at your fingertips. Explore locally made products from all different categories below.
Our friends at Bartender Atlas have put together a list of spirits and wines made in Canada. Explore the list below.
WEBINAR: Whether supplier or operator, learn how the U.S. tariffs will impact Canada’s foodservice industry in this informative webinar.
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