Leaders condemn Trump’s tariffs, urge strengthening Canada’s grocery industry
Earlier this week, U.S. President Donald Trump signed orders to impose 50% tariffs on a broad number of Canadian goods.
Items subject to the new tariffs range from hockey sticks to wine and whiskey and natural honey.
Set to come into force on Aug. 19, the duties bring about more uncertainty for Canada’s grocery industry, as trade conflicts and geopolitical volatility continue to impact the food supply chain. But not all is lost.
“The impact of American trade salvoes over the last 18 months, including this most recent volley, has played a significant role in reshaping how governments, the food industry and Canadians are approaching many issues,” Gary Sands, senior vice president of public policy and advocacy for the Canadian Federation of Independent Grocers, says. “While we cannot discount nor minimize the short-term consequences of these tariffs, there will undoubtedly be some long term benefits to Canada.”
Read on for what Sands and other industry organizations have to say about this latest threat.
Gary Sands, senior vice president of public policy and advocacy, Canadian Federation of Independent Grocers
“CFIG’s initial reaction is to express our disappointment with the continued volatility and uncertainty that the most recent tariff threats bring to our industry and to other sectors. And additional tariffs on a wide range of Canadian goods will end up hurting consumers on both sides of the border. We also know the possible imposition of tariffs on the goods listed will also, of course, have an immediate, short-term impact on Canadian producers and processors in certain sectors.
“But this most recent threat by the United States underscores why Canada’s new Food Security Strategy is the kind of approach we need to be taking as a country. Indeed, the impact of American trade salvoes over the last 18 months, including this most recent volley, has played a significant role in reshaping how governments, the food industry and Canadians are approaching many issues. The desire to reduce interprovincial trade barriers, strengthening our domestic East-West supply chain through the new Food Security Strategy—with multi-billion dollars in funding—and the increased demand in the Buy Canadian movement—all of these changes perhaps would not have occurred without the external threats that have come our way from the United States. So, there are two sides to the coin when looking at how these tariffs will impact the industry.
READ: A timeline of Donald Trump's trade war with Canada
“While we cannot discount nor minimize the short-term consequences of these tariffs, there will undoubtedly be some long term benefits to Canada. Ironically, it was a former American president Barack Obama who said, ‘Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for.’ Perhaps in the years ahead, many of us may look back at this period and view it as a pivotal point in reshaping and strengthening our industry in ways we would not have done otherwise and that we Canadians are the ones we’ve been waiting for.”
Matt Poirier, vice-president of federal government relations, The Retail Council of Canada
“The Retail Council of Canada and our members clearly oppose additional, unjustified, and damaging trade action against Canada by the United States. Such a move only serves to drive up costs for American consumers and destabilizes tightly integrated North American supply chains. It severely complicates trade flows, forces Canadian retailers who sell affected goods into the U.S. to shift business out of the U.S. and elsewhere, and ultimately disrupts long-term investments. Crucially, these sweeping measures will inevitably heighten inflation and further squeeze consumers on both sides of the border at a time when household budgets are already stretched and families can least afford it. As this situation unfolds, Canada must respond cautiously and avoid introducing new retaliatory tariffs on goods coming into our country, as doing so would simply drive up prices at the register for everyday Canadians."
READ: FHCP’s Michael Graydon on CUSMA’s future
Michael Graydon, CEO, Food Health & Consumer Products of Canada
“The U.S. Administration’s decision to impose an additional 50% tariff on a broad range of Canadian goods beginning August 19 introduces new uncertainty into the Canada–U.S. trading relationship at a time when businesses need greater predictability.
“Unlike previous rounds of tariffs, these duties will apply to covered products even when they comply with CUSMA, undermining the rules and certainty businesses have relied on to make investment, production, and supply chain decisions across North America. Maintaining that stability is important to supporting continued planning, investment, and growth in both countries.
“If the tariffs take effect as scheduled, the consequences will extend beyond the products directly affected. Canada’s food, health, and consumer products sector employs more people than any other manufacturing sector in the country and depends on deeply integrated cross-border supply chains. While the immediate focus may be on the products covered, the broader consideration is how continued uncertainty affects manufacturing and investment decisions over time. Decisions to move production mandates and investment elsewhere can have lasting consequences for Canadian manufacturing.
“The 30-day window before these measures take effect must be used to reach a negotiated solution and restore the predictability businesses require. If Canada responds with countermeasures, food, health, and consumer product inputs must remain off the tariff list. Adding costs to essential ingredients, materials, and finished goods would further weaken Canadian competitiveness without creating meaningful leverage.
“CUSMA remains in force and continues to underpin one of the world’s most integrated and mutually beneficial trading relationships. FHCP will continue working with governments and industry partners to support predictable, rules-based trade and the business certainty needed to invest, compete, and grow across North America.”
