It’s been over a month now that Donald Trump’s unscrupulous tariff threats to Canada and Mexico have been looming over many of us.
What are Tariffs?
Tariffs are a tax imposed on goods imported from other countries. When the U.S. imposes tariffs on Canada, this makes it more expensive for Canadian businesses to sell products in the U.S.. When Canada imposes tariffs on the USA, U.S. businesses will have to pay more to sell their products in Canada. These costs, associated with produce, food ingredients and much, much more will all end up being largely passed down to Canadian grocery store consumers.
U.S./Canada Tariff Timeline
The U.S. administration was looking to levy tariffs of 25% on all Canadian and Mexican goods imported into the USA, but with Mexico and Canada issuing threats of retaliatory tariffs, among other factors, Trump couldn’t seem to make up his mind. Here’s a timeline of what ensued thereafter:
- March 4, 2025: U.S. tariffs of 25 per cent on Canadian goods, and 10 per cent on energy exports from Canada imported into the U.S. from Canada, came into effect.
- March 12, 2025: U.S. imposes tariffs of 25 per cent on Canadian steel and aluminum products. In response, Canada imposes retaliatory 25% tariffs on steel, aluminum and additional imported US goods, which will increase in phases.
This quickly moving trade war seems to be evolving daily, so we don’t know what the next weeks and months entail in relation to tariffs, but whatever the end result, there’s a very real threat to Canadians and food security in the nation.
Implications on Food Security in Canada
According to Canadian government data, Canada trades billions of dollars’ worth in grocery items with the U.S., including $72.6 billion in agriculture and agri-food products. Expect higher grocery bills as stores pass the extra costs down to consumers – but not on all products all at one time. Some price increases could take several weeks or months to get to the grocery store prices, but certain products are subject to quicker impacts. This non-exhaustive list includes:
- Peanut Butter
- Dairy products (Cheese, Milk, Butter etc.)
- Fresh produce, such as oranges, berries and leafy greens which come from the US.
- Packaged snacks
Tariffs of food products directly impact the costs of groceries, but the impacts of the tariffs on other trade goods such as steel, electricity and agricultural inputs are also going to put pressure on food security. For example, canned vegetables are expected to face significant price increases due to the steel tariffs. While there are some products that can be more easily replaced with domestic or international items – even products manufactured in Canada may rely on ingredients from the U.S.
How can we be prepared for the threat of tariffs?
Now, more than ever, Canadian consumers must make conscious choices when purchasing at the grocery stores. Here are some of the ways in which we can prepare ourselves:
Support Canadian Businesses – Choose Canadian-owned businesses and restaurants! Try small businesses when you can, but even swapping your supermarkets or fast food restaurants to Canadian owned ones will make a difference! Make sure you are looking at the labels of all your purchases for that “made in Canada” label. Many major grocery stores are tagging their Canadian products, or better yet, tagging which products are being impacted by the tariff war.
Shop Local: Supporting our smaller businesses and sustainable food alternatives, especially those that support locally grown produce, such as local farmers markets are the best ways to support the Canadian food economy.
Prioritize seasonal produce: In keeping with the ‘Made in Canada’ theme, where possible, buy fresh and in season fruits and vegetables that are grown in Canada. These options are often locally sourced, and more affordable! This will be a more difficult concept in the winter months, but try looking into ways to make those summer produce last into the winter!
Be prepared: Be aware of these potential price increases and see how you can plan your eating habits accordingly. As mentioned above, some products will be hit harder than others, so planning your meals to avoid certain products can be a good way to cut some costs. Staying informed on any new policies that may affect grocery prices can be effective in understanding the potential impact on your grocery bill.
Diversify your international purchases: Avoid made-in-the-US products at all costs! Go for the Mexican oranges, not the American ones! There is a broad selection of food coming from all over the world that are not directly impacted by the tariff war. However, it is worth noting that additional costs may come from diversifying our spending, due to shipping costs, amongst other things. Keep your eyes and ears open for the potential price drops that may occur on certain Canadian products resulting from lower demand from US consumers.
Obviously, these options and changing our normal spending and eating habits are not a priority to all consumers (with grocery prices already skyrocketing) – the cheapest option may still be your best option. Where possible, we must support local, small businesses and shift our spending habits to rely less on major US imports.
Sources:
China announces retaliatory tariffs on some Canada products
Trump delays some tariffs on Mexico and Canada for one month | CNN Business