Apr. 16, 2025 "Trade war starting to show up in higher prices on some grocery items": Today I found this article by Abby Hughes on CBC:
After months of trade war back-and-forth, the impact of tariffs is starting to make its way onto our dining room tables, according to experts working in the Canadian food and grocery industry.
Small grocers in particular have been paying more for the products that line their shelves, said Gary Sands, senior vice-president of the Canadian Federation of Independent Grocers.
While a number of produce items from the U.S. aren't tariffed,
fresh produce that is taxed has seen the most immediate increase,
Sands said, given that it is perishable and cycles through stores quickly.
And because many of Canada's 6,900 independent grocers operate on
slim profit margins of around two per cent
— much smaller than the margins in many other sectors
— those increases are being passed on to consumers, Sands added.
"When you're on that kind of a margin, if you're being handed increases by … the food manufacturers of, you know,
four or five, six, sometimes double-digit [per cent] increases,
you're passing that on to the consumer and there's just no way to get around that," Sands said.
As part of Canada's response to U.S. tariffs, the federal government imposed 25 per cent tariffs on $30 billion worth of U.S. goods on March 4.
A number of food products are part of that list of affected goods — including
orange juice,
some berries,
nuts,
ketchup,
shrimp and more.
Those counter-tariffs are starting to show up in the supply chain.
On top of that, consumer price index data also indicates a slight increase in food prices. In February, the price of food purchased from stores was up by 2.8 per cent from February 2024.
In March, the year-over-year price increase had risen to 3.2 per cent.
Stuart Smyth, an agricultural and resource economics professor at the University of Saskatchewan, said tariffs likely had an impact on that.
"We've had this threat of tariffs really since early February now," Smyth said. "It's on and it's off and it's on and it's off, so I think that uncertainty is having a factor on the pricing of a lot of goods."
The price increase on tariff-impacted items is also becoming visible on grocery store shelves. In the case of orange juice, for example, American products are often priced higher than those made elsewhere.
A comparison of pulp-free orange juices listed on the Loblaws website showed significant price differences between products marked "Prepared in Canada'' and those from the United States labelled as being impacted by tariffs.
A President's Choice brand pulp-free orange juice and an equivalent from Simply Orange — both identified as being prepared in Canada —
were priced at $5 ($0.32 per 100ml)
and $7.69 ($0.50 per 100ml) respectively.
Meanwhile, the U.S.-made Tropicana pulp-free orange juice was priced at $8.72 ($0.66 per 100ml).
It was a similar story at Metro, which primarily has stores located in Ontario and Quebec.
A 2.5-litre jug of Irresistibles pulp-free orange juice was listed online for $6.99 ($0.28 per 100ml)
while a similarly sized jug of Tropicana orange juice was listed at $13.99 ($0.53 per 100ml).
Canadian prepared foods not spared
In addition to American goods in Canadian stores simply going up in price,
tariffs are also beginning to increase costs for Canadian food producers,
said Michael Graydon, CEO of the organization Food, Health & Consumer Products of Canada.
For example, a Canadian producer of canned tomatoes that sources their tomatoes from the U.S. would have seen a tariff on the produce since early March.
Coffee, chocolate and nuts — goods that are often used in the production of food in Canada — are also among items that are now subject to counter-tariffs, Graydon said.
All of this increases the costs for Canadian food producers. For the time being, Graydon said, the producers he's heard from are mostly absorbing that increase, preferring to wait and see if the turbulent tariff situation changes again before upping their prices.
Could hit independent grocers harder
Meanwhile, the buy Canadian movement has put an extra layer of pressure on smaller retailers who are doing their best to shift their supply chains quickly, Sands said.
"Consumers are being very vocal about this, they want and expect to see as much Canadian product … as they can on their shelves," Sands said. "I've been with this association 25 years, I've never seen anything like it," Sands said.
They're doing their best to buy produce from places in South America instead of the U.S., but Sands says those kinds of supplier swaps are hard for small businesses to do.
Michael von Massow agrees.
Now that there are tariffs on oranges, for example, he says grocers are likely seeking cheaper ones grown in Turkey or South Africa rather than ones from the United States.
Whoever buys the most oranges would be first in line to get the sale, which means small grocers that are buying less may struggle to change their supply chains.
Sands added that some grocers that stocked American products are now finding it hard to sell. This puts them in a tough spot when they can't recoup the cost of those goods, and adds yet another layer of stress.
Impact just starting to materialize
Despite the impacts seen by grocers and on shelves so far, the impact of tariffs hasn't fully materialized yet. And some of the increases won't be due to tariffs.
When suppliers want to increase prices, Graydon says most retailers make them apply for that change and give reasons as to why they think the increase is justified.
He says this process takes six to 12 weeks, meaning some increases haven't yet started showing up.
On the other hand, variety in grocery stores is helping Canadians avoid the high-priced tariff items, according to von Massow.
Unless consumers are insistent on buying an American brand like Tropicana, for example, he said they can likely avoid the impact by buying a Canadian alternative.
Von Massow added that the impact of tariffs on food is also limited by what the federal government chose to include — and exclude — from that list of counter-tariffed products.
Leafy greens, which Canada buys from the U.S. in huge amounts at this time of year, aren't getting levied, he pointed out.
"I think the government was pretty selective as to which products they put it on to maximize pressure on the U.S. and minimize pressure on Canadian consumers, at least in the first round," von Massow said.
As the weather gets warmer and Canada's growing season gets underway, von Massow said it will be easier to find homegrown produce that avoids both tariffs and supply chain-related increases.
https://www.cbc.ca/news/business/tariffs-impacting-food-1.7510987
Apr. 27, 2025 "New brands, recipes and habits: How grocery shoppers are standing up to the U.S.": Today I found this article by Rosa Saba on BNN Bloomberg:
It has also mobilized many Canadians to change how they shop, and in some cases forgo their preferred products to support domestic companies.
Data show a lot of people are jumping on the trend. According to NielsenIQ, around a third of respondents to a March survey were entirely boycotting U.S.-made products regardless of availability or price.
Meanwhile, a survey by Spring Financial found four in five Canadians are making a conscious effort to buy more Canadian-made products.
Here’s how shoppers are responding to the trade war at the grocery store.
Canada first
For many, it’s Trump’s comments about taking over Canada that prompted the change.
“The threat of tariffs was one thing. The 51st state conversations that we’ve been hearing, that is ultimately what was the main driver,” said Ottawa resident Tova Larsen. “Because this becomes an existential threat to Canada.”
Larsen said she’s also concerned about food safety, noting the cuts to the Food and Drug Administration in the U.S., which oversees the safety of food and other products.
“It’s turning Canada from an American cousin into an American enemy or an American target,” said Alex Burton in Vancouver, B.C.
“If my choice was between an apple from Washington and an apple from New Zealand, I would have always chosen the apple from Washington because it’s closer and environmentally better. Now, I’m not doing that,” he said.
Irene Carroll in Toronto found herself struck by reading about the potential economic impact of buying Canadian.
“Before I would just look at what was on sale and put it in a shopping cart, not really paying attention as to where the product came from.
But as soon as the tariffs hit ... I took that a lot more seriously,”
she said, adding she’s discovered some new favourite products as a result.
Though some items are more expensive, Montrealer Jean-Francois Denault said he’s found himself doing more research online to find good, affordable alternatives, and he’s also stumbled on some gems.
Denault said he’s noticed his local grocer replacing some U.S.-made items with local or international alternatives,
helping him make the shift.
No more cross-border trips
For some, buying Canadian means giving up cross-border shopping.
Stephen Liard moved to Niagara Falls, Ont., in his retirement partly because of its proximity to the border. He would often drive over to get a better price on gas, have parcels shipped to the U.S., or go shopping for spices and other products he couldn’t find in Canada.
But Liard found Trump’s “51st state” comments disrespectful and is no longer crossing the border to shop.
“Are there a few things that I miss? Sure,” he said.
“But you turn around and you say to yourself, I’m just going to make a stand on principle.”
Donna Jenkins, who hails from Georgia but has lived in Canada for 27 years, said she’s disappointed in her home country, and won’t cross the border anymore.
“I’m doing without a lot of my American products,” she said. “We’re strictly Canadian or Mexican, or, you know, any other ally. We’re not buying anything American.”
Drawing the line
Many shoppers said they don’t mind buying products made in Canada by American companies because they still feel they’re supporting Canadian jobs and the domestic economy.
“I don’t want to cost anybody jobs,” said Carroll. “So if we have a product that is coming here and we are mashing it, smashing it, bottling it, whatever, a good portion of that, I believe, is still made in Canada.”
Jenkins agreed: “If it employs a Canadian, I buy it.”
But as shoppers pay more attention to labels, some have found the variety of phrasing confusing.
The “Product of Canada”
and “Made in Canada”
descriptors must meet specific Canadian Food Inspection Agency guidelines,
but other phrases like “Proudly Canadian” or “Packaged in Canada” leave some consumers scratching their heads.
“As I pay more attention to the labels, I find them a little bit more confusing, and I find there is a lack of standardization around some of them,” said Denault.
Carroll said she’s found a Facebook group that crowdsources Canadian-made product recommendations, which has helped her make decisions at the grocery store.
Larsen said she’s become more focused on eating seasonally, and has turned to new recipes as a result.
For example, she’s drawing upon northern and eastern European recipes for inspiration on how to use root vegetables during the colder months,
and is using Canadian-grown greenhouse vegetables like cucumbers and peppers for Mediterranean dishes.
Stretching the budget
Some shoppers said boycotting American products has resulted in a costlier grocery bill, like the food Larsen buys for her cat.
“They really are enjoying their new diet, but ... it’s easily 25 to 30 per cent more expensive to choose the Canadian option,” she said.
Burton said he notices the difference at the cash register.
“Every time I’m checking out, I’m paying more. And frankly, I’m OK with that,” he said.
Liard agreed.
“As a Canadian I said, you know what? It might cost me a few dollars extra, but I am no longer willing to go across and support American business at the expense of Canadian business,” he said.
In it together
Burton said he thinks the shift in the Canada-U.S. relationship is going to have a lasting impact regardless of where Trump takes his trade policy next.
“Even if this passes, there’s now a generation of people who will have that
imprinted on our collective memories,
and it will affect our behaviour,”
he said.
The trend has also created a sense of togetherness and camaraderie, the shoppers said, and not just among family and friends.
“Complete strangers standing in line for the cash register at the grocery store are talking about it.
People in the aisles, in the produce section, are looking at labels consciously, and then they’ll say to a stranger, ‘Oh, these are from Guatemala, they’re great to buy. Or, this is from the U.S. Don’t touch those,’” Liard said.
“People are taking a co-operative, communal approach to this.”
This report by The Canadian Press was first published April 27, 2025.
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