The Government of Canada has lifted its retaliatory tariffs on U.S. food products. After months of uncertainty and negative impacts, this long-awaited measure will provide relief to thousands of businesses across the country and address Canada’s affordability crisis.
Restaurants Canada estimates that retaliatory tariffs were resulting in at least $100 million a month in additional costs to the foodservice industry. While Canadians were navigating affordability challenges, including food inflation, this added burden was largely absorbed by foodservice businesses, 40 per cent of whom were operating at a loss or just breaking even. In addition, many of the food products that were targeted by retaliatory tariffs were not available domestically or from other markets.
Restaurants Canada has been one of the leaders in lobbying the federal government to remove retaliatory tariffs on food for several months. In partnership with other food associations, the organization sent a letter on the urgent need for this relief to several ministers and all opposition parties.
“The removal of retaliatory tariffs by the Canadian government will help Canadians with the affordability crisis and will protect the 1.2 million jobs in the foodservice industry,” said Richard Alexander, executive vice-president, Government Relations and Public Affairs with Restaurants Canada. “We support the federal government in taking a more targeted approach in its negotiations with the U.S.”
