With no U.S. trade deal in sight and the August 1 deadline behind us, Canadians and the foodservice industry are feeling the impact of an ongoing tariff situation. Households, restaurants, and food manufacturers are all facing higher costs, and it\u2019s clear that a realistic conversation about counter-tariffs is needed. <\/p>\n\n\n\n
Six months in, the question remains: are these counter-tariffs on food having the intended effect, or are they mainly contributing to rising food prices? <\/p>\n\n\n\n
Since March 2025, food inflation has outpaced the Consumer Price Index by an average of 1.4%. A major factor is the counter-tariffs on essential food items, particularly those with limited domestic substitutes or that are central to Canada\u2019s food supply chain.\u00a0<\/p>\n\n\n\n
Environmental factors are also playing a role. Over half of Canada\u2019s agricultural land entered the growing season under drought conditions, and prolonged dry spells across large regions are expected to reduce domestic food production. Relying solely on domestic supply to offset tariffs is challenging and is adding pressure on consumers. <\/p>\n\n\n\n
Given these factors, a reassessment of counter-tariffs may be warranted. Together with industry partners, we are urging the government to review existing counter-tariffs on food to determine whether the resulting higher costs for Canadians are achieving the desired tariff war results. <\/p>\n\n\n\n
We\u2019ve formed a coalition of business associations and sent a joint letter to the Minister of Finance. At the same time, we are advocating for tariff relief for the foodservice industry and exploring measures to reduce costs for consumers, including the permanent exemption of food from GST\/HST. <\/p>\n\n\n\n
We will continue to provide updates as the situation evolves. Canadians deserve a food policy that balances strategic objectives with fairness and affordability. <\/p>\n","protected":false},"excerpt":{"rendered":"
The View From Washington: Richard Alexander\u2019s Blog from the Tariff Trade Mission to Washington<\/p>\n","protected":false},"author":5,"featured_media":6194,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[85],"tags":[],"advocacy-issue":[],"news-region":[27],"class_list":["post-6193","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","news-region-national"],"acf":[],"yoast_head":"\n