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Canada-U.S. Trade War Escalates

The trade war with the United States has intensified again as Canada’s counter-tariffs came into effect Tuesday morning. 

Following the federal government’s announcement of imports it is targeting with counter-tariffs, we met with officials in Finance, Canada–U.S. Trade, Agriculture, and Global Affairs to raise the concerns we heard from our members and our Trade and Tariff Working Group. Our objective is to help ensure tariffs and government support measures are targeted, effective and responsive to the realities facing businesses across the country.  

We were pleased that, in the days following our meetings with federal officials, the government announced two measures that Restaurants Canada had recommended: 

  • Reversing the decision to impose tariffs on U.S. fish and seafood. 
  • Extending the fuel excise tax suspension until January 31, 2027. 

Restaurants Canada was invited by the Minister of Finance to attend the fuel tax announcement, and our Vice-President, Federal, was pleased to represent the industry. We are grateful that the government listened and acted on these priorities.   

This week, we continue pressing the government on priority tariff concerns raised by members, particularly the impact of retaliatory tariffs on packaging, parts and equipment. We have multiple discussions booked in the coming weeks with key officials to keep our advocacy progressing.  

Our message to government is clear: Protecting the cost of food alone is not enough. Restaurants rely on a broader food system—including the equipment, packaging and infrastructure needed to prepare, preserve and serve food. When these critical inputs are subject to tariffs, operators face additional cost pressures that affect investment, employment and the cost of doing business.  

We are taking these concerns directly to government, highlighting the disconnect between protecting food from tariffs while taxing many of the inputs required to get that food onto the plate. We will continue advocating for practical measures that recognize pressures on the restaurant sector during this challenging economic climate.  

Business Support  

The government recently announced a $7.5 billion relief package to assist Canadian businesses and workers. We are in active conversations with government to clarify the specific details of these measures and to confirm the eligibility of our industry. We will provide an update to members based on those discussions in the coming days. 

We know our industry is going to face some challenging times as this new round of counter-tariffs comes into effect and as the economy starts feeling the impact of the new U.S. tariffs. Chris Elliott, our Chief Economist and Vice-President of Research, shared his analysis on how this new round of trade tensions could affect restaurants. 

While the extension of the fuel tax suspension is a welcome step and provides some relief across the economy as a whole, it is only one of several measures needed to address the broader affordability and operating cost pressures facing our sector.  

The Restaurants Canada team will continue to advocate for access to support measures for our industry and to share the latest information you need to make business decisions. 

Restaurants Canada team update 

I am pleased to welcome two new senior members to Restaurants Canada’s Government Relations and Public Affairs team. 

Giulia Doyle joined us as Vice President, Public Affairs and Communications this week. Giulia is a bilingual communications, marketing and public affairs executive with more than 20 years of experience working with national associations, government and highly regulated organizations, most recently with the Federation of Law Societies of Canada. She brings extensive experience in strategic communications, media relations, marketing, brand strategy, issues management and advocacy communications. Giulia will be working out of our Ottawa office. 

Jason Lagerquist will be joining Restaurants Canada as our new Vice President, Central Canada, starting September 14. Jason brings extensive government relations and advocacy experience, strong political instincts and a deep understanding of how government works. For the past eight years, Jason has served as Head of Government Relations at the Ontario Real Estate Association (OREA). Before that, he spent more than a decade working in the Ontario government and at Queen’s Park, including as Chief of Staff to the Minister of Agriculture, Food and Rural Affairs, Senior Policy Advisor to the Minister of Agriculture and Food, and Senior Advisor to the Premier of Ontario. Jason will be working out of our Toronto office. 

Restaurant youth employment continues to rise in August 

Underlining the economic importance of our industry, restaurants posted another strong month in youth employment on Statistics Canada’s August Labour Force Survey. In the first eight months of the year, the restaurant and accommodation sector employed 50,000 more youth on average than the same period last year. Restaurants are responsible for 85% of those jobs. 

Youth unemployment has remained elevated over the past year, and the turbulent economic times ahead may pose new challenges. This is one area where our industry really shines, and celebrating these wins helps us raise the importance of our sector to Canada’s economy when we speak with policymakers.  

To support you in hiring and retaining youth, we have developed a youth employment toolkit. Download yours today. 

A Smarter Immigration Strategy: RBC Report 

Last week, I attended the launch of a new RBC report on immigration strategy. Restaurants Canada contributed to the development of the report, which addresses Canadians’ changing attitudes towards immigration and charts a path ahead to ensure Canada has the workforce it needs to sustain itself and grow in the century ahead.  

The reality is that Canada has an aging population and workers are retiring at a much faster pace than they are entering the workforce. Nearly 40% of restaurant and foodservice employees are under the age of 25, so our industry is particularly exposed to the effects of a shrinking youth population. 

Following the last two years of rapid changes to the immigration system, policymakers will be looking at research like this to rebuild Canada’s immigration strategy and attract top talent. It’s imperative that the restaurant sector be represented in that strategy. 

You can download the full report here

ICYMI: A Practical Look at AI for Restaurant Teams webinar recording 

If you missed our recent webinar with Kibbi and hospitality recruitment expert Val Upfold on how restaurants can begin integrating AI into their workforce strategies for onboarding and training, you can now watch the recording here.

Kelly Higginson