New 25% tariffs on Canadian exports to the U.S. raise concerns over food prices

A 25% tariff on Canadian exports to the United States took effect today, raising concerns across various industries, including agriculture and food.

“The tariffs will affect food prices,” said Dr. Sylvain Charlebois, professor & director of Agri-Food Analytics Lab at Dalhousie University.

Trade between the two countries is valued at nearly $75 billion, with Canada exporting about $42 billion to the U.S.

Montrealers are already worried about the potential increase in grocery bills as a result of the new tariffs.

“I think it will affect what I’m buying at the grocery store,” said Maxime Chouinard, shopper. “I definitely won’t be buying any more orange juice from Florida.”

Trump’s 25 per cent tariff on Canadian goods is prompting Montrealers like Elia Stamboulieh, to boycott American goods at grocery stores in Montreal.

“I have to support Canada, what is happening is really terrible,” said one Montrealer.

Instead of orange juice, Montrealer Chantal St-Onge, said she opted for Quebec-made cranberry juice. 

“I’ll be looking at where the products are coming from much more closely now, and I’m hoping that the prices don’t go up again,” said St-Onge. “I’m paying a lot more for groceries this year and that really hurts.”

Store manager Nader Malek says they’ll try their best to prioritize Canadian products, but that it’s impossible to avoid American products altogether.  

“It’s like saying it’s impossible to buy Canadian products,” said Malek. “I mean, New York lives on Quebec’s electricity, you know, so they can’t say we don’t need your electricity. We don’t eat your lumber. It’s not true.”

“There are a lot of products that come from Mexico and we don’t know right now if these products are going to be taxed,” said Dr. Charlebois. “So today is really the end of the North American trade deal.”

Some sections of the grocery store are stocked with upwards of 90 per cent Canadian products, like dairy, baked goods and most meat. Charlebois expects between seven to nine per cent of Canadians to boycott American products at the grocery store. 

“People may decide to boycott kraft peanut butter because you have peanuts from America in there,” said Dr. Charlebois. Lay’s chips is an American brand, but Lay’s chips is made of Canadian potatoes manufactured in Cambridge, Ontario.”

The Canadian dollar has been in its longest losing streak since 2016. A weaker dollar in turn hurts the buying power of importers, another reason grocery bills could increase.

“We’ve had talks internally about bracing ourselves for this,” said Thomas, a chef at a Montreal shelter. “There has been a big increase in people coming to us for their daily lunches. At least 30 or 40 per cent, I could be off by a little bit. But I think that all that this is going to do is most likely increase the amount of people who are really in need and really need that extra help.”