Are You Retaliating Against the Tariffs?

Canadians are frustrated with the tariff threats and potential trade war with the U.S. and while there’s not much we can do individually, many are making their feelings known in stores. They're turning to “Buy Canadian” as a way to make a difference. Retailers are jumping on this trend, with stores putting up signs to highlight Canadian-made products, encouraging shoppers to support the cause.

But just how much of an impact will this really have?

Sylvain Charlebois, a professor at Dalhousie University and an expert in food distribution and policy, believes around 7 to 9 percent of Canadian shoppers will avoid American-made products in stores. He applauds the effort, but says it won’t really affect the cost of Canadian products. One thing Charlebois does see happening is that Canadians are becoming more aware of where their food comes from. They’re learning to read labels more carefully, and that’s a win for the Canadian food industry.

The real issue for Canadians might not be fighting U.S. tariffs, but tackling the barriers within our own country, specifically, interprovincial trade. Around 70% of the food produced in Canada gets exported to the U.S., and while Charlebois doesn’t think Canadian food will face tariffs, the weaker dollar could still raise the cost of imports which means fruits and vegetables could get even more expensive.

What’s also challenging for Canadian businesses is selling food across provinces. Charlebois points out that it’s easier to get food into the U.S. than it is to move it between Canadian provinces due to trade barriers. Things like different transportation rules and regulations, ranging from transport hours to storage temperature requirements. Many Canadians have seen this firsthand with alcohol sales as getting an Alberta-made beer into stores in Quebec is no easy task.

For 25 years, Charlebois has been pushing for change on the supply management system in Canada. He believes the key is to harmonize management at the federal level and break down the provincial boards. If we could make the system more open and competitive, he thinks it would lower costs for both retailers and consumers, giving us more choice and better prices.

We’ve been through a “Buy Canadian” push before, back in 2017, and it eventually faded. Whether this current wave lasts or not, Charlebois and his team at the Agri-Food Analytics Lab predict food prices will rise another 5% in 2025.