U.S. Tariffs and Canadian Retaliatory Measures: What this may mean for your business
Updated: February 27, 2025
While U.S.-led tariffs on Canadian products and Canadian retaliatory measures have been deferred for at least 30 days to March 4, 2025, there are still significant threats to our industry. If imposed, these tariffs will drive up operational costs, disrupt supply chains, and put jobs at risk on both sides of the border. Canada’s response will also have a significant impact on our industry.
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. In March, we are joining a trade mission in Washington, DC.
We are calling on the government to prioritize job retention should the trade dispute lead to major job losses. Wage support programs, rather than immediate EI measures, would help businesses sustain employment and support economic recovery.
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 have urged policymakers to exempt food and food packaging from retaliatory tariffs to avoid further inflationary pressures on essential goods. That said, we support the federal government in its plan to defend Canada’s interests, which will include retaliatory tariffs that may impact our industry. We need to be prepared to endure some short-term pain.
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.
FAQs
The Canadian government has announced its intension to levy 25% retaliatory tariffs on the following U.S. food products that would directly affect the foodservice industry if the U.S. proceeds with its tariffs:
- 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.
If the U.S. imposes tariffs on Canada, the governments of British Columbia*, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, P.E.I., Newfoundland and Labrador, Nunavut, Yukon and the Northwest Territories have all indicated they will stop the purchase and sale of U.S. alcohol products through public liquor boards. Provinces and territories are also considering excluding U.S. companies from new procurement agreements and potentially cancelling existing contracts.
Alberta and Saskatchewan have not publicly released any plans for retaliatory measures against the U.S.
*British Columbia will specifically target alcohol products from Republican-held states.
The federal government and Premiers are actively looking at ways to support Canadian workers and businesses in the event that the trade dispute leads to major impacts on the economy. Restaurants Canada has urged the government to provide wage support as it did during the pandemic, in order to protect Canadian jobs. There are no details available about any programs yet, but we will update members as we learn more.
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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