Tariffs: what you need to know
U.S. President Trump issued an executive order imposing a punitive 25% tariff on some imports from Canada and Mexico into the United States.
Trade is crucial to both the U.S. and Canadian economies. Overall:
- Total exports of goods and services account for 33.7% of Canada’s gross domestic product.
- 1 in 6 jobs in Canada are linked to exports.
- The US is our largest trading partner, accounting for 77% of Canada’s exports.
- Every day, $3.6 billion worth of goods and services travel across the border between Canada and the United States.
Our food supply chain is highly integrated with the U.S., making this tariff war deeply concerning for the foodservice industry on both sides of the border. Food is essential, and Restaurants Canada continues to urge the Canadian government to implement measures to help our industry navigate these tariffs. This includes making all food tax-free, introducing manufacturing credits to scale up domestic food packaging operations, removing interprovincial trade barriers, and loosening packaging regulations to allow imports from other countries as substitutes. While economic pain is inevitable, these measures would protect businesses and jobs in our industry. Without them, job losses in the foodservice sector—Canada’s fourth-largest private employer—would be even more severe.
For more information on tariffs and other foodservice trends, check out Restaurants Canada’s latest Quarterly report, here.
As the Chief Economist and Vice President of Research for Restaurants Canada, Chris Elliott manages and produces a comprehensive research program that has made Restaurants Canada a leading source of information for and about Canada’s nearly $120-billion foodservice industry. Chris tracks and analyzes key industry and economic indicators and translates them into member reports and publications. He also provides research to support Restaurants Canada’s lobbying efforts on issues that affect foodservice operators – from payroll taxes to food costs.
Chris has worked with Restaurants Canada for over 20 years, has a Bachelor of Arts and Master’s Degree in Economics and specializes in economic modelling and forecasting.
