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Loblaw to ‘double down’ on Canadian-made products, buy from Mexico: CEO

Per Bank says tariffs and the weak Canadian dollar will put pressure on costs
Jillian Morgan, female, digital editor for Canadian Grocer
loblaws
Loblaw is Canada’s largest purchaser of domestic food.

Loblaw Cos. Ltd. CEO Per Bank said Sunday (Feb. 2) Canada’s largest grocery retailer is taking action to minimize the impacts of the country’s trade war with the U.S. on consumers.

Bank called the U.S. government’s tariffs “wrong-headed,” and supported Canada’s decision to hit the country with retaliatory measures.

“The cost of living, including the price of food, has been challenging. A trade war would do nothing to make that reality any better on both sides of the border, especially for customers,” Bank said on LinkedIn. “That’s our primary concern.”

The chief executive said Loblaw—Canada’s largest domestic food purchaser—is “doubling down on securing food grown and made” locally. 

“Where we have had to purchase products made in the U.S., we will look for alternatives including products from Mexico which has also been subjected to these unnecessary tariffs,” he added.

On Saturday, Ottawa announced 25% tariffs on $155 billion worth of goods in response to 25% tariffs imposed by the United States on Canadian imports.

The first phase of the federal government's response will include tariffs on $30 billion in goods imported from the U.S., effective Tuesday when the U.S tariffs are applied.

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Those goods include orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper. 

Bank also said the grocer is working with the government and industry to advocate for consumers.

“Economically, we know that tariffs by their very nature are inflationary. Add in the state of the Canadian dollar at the moment, and new tariffs have the potential to put significant pressure on costs, which will ultimately impact consumers directly,” he said. “We hope that government leaders move quickly to solve this issue and remove barriers to trade for two countries that have enjoyed decades of friendship and partnership.”

The comments follow similar sentiments expressed last week by Metro president and CEO Eric La Flèche.

"My biggest concern is the Canadian dollar… There's a consequence on our costs if the Canadian dollar weakens or is weaker. It is weaker today than it was a few months ago. So we're feeling that pressure. How do we prepare? We prepare by getting the best sources of supply that we can. We prepare by buying Canadian and local as much as we can. But there are certain products, especially at this time of year, that we don't produce in Canada and we don't sell in Canada," La Flèche told reporters following the Ontario and Quebec grocery retailer’s annual general meeting.

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