Central Alberta consumers may see higher prices on some U.S. imports, but Loblaw says alternatives are available.
Loblaw operates several grocery and retail chains across Canada, including Real Canadian Superstore, No Frills, Shoppers Drug Mart, and Your Independent Grocer. Other Loblaw-owned stores include Loblaws, Fortinos, Zehrs, Maxi, Provigo, and T&T Supermarket.
Shoppers will soon see a new "T" symbol on price tags at Loblaw-owned grocery stores, marking products affected by Canada’s counter-tariffs on U.S. goods.
In a LinkedIn post, Loblaw Companies Limited President and CEO Per Bank said the federal government has imposed tariffs on roughly $30 billion worth of goods, including poultry, dairy, fruits, and vegetables, in response to U.S. trade measures. These tariffs, which add up to 25 per cent on some imports, are expected to push prices higher.
"The unfortunate reality is that Canadians should be prepared to pay more for goods originating from the U.S. in the weeks ahead," Bank wrote. "However, there are non-U.S. options not affected by tariffs for many products, and we are working hard every day to expand those options further."
While tariffs are expected to increase prices on U.S.-sourced goods, Loblaw’s latest Food Inflation Report warns that other factors—including the weak Canadian dollar and global commodity volatility—also contribute to higher costs.
"The Canadian dollar is at its lowest level in 20 years," the report states.
Since most fresh produce is priced in U.S. dollars, a weaker loonie means higher costs for essentials like lettuce, tomatoes, and avocados. Even non-U.S. imports, such as South American coffee and Spanish citrus, are often priced in USD, reducing the potential for relief.
Canada relies heavily on U.S. agricultural imports, which could further drive up prices. According to Loblaw’s report, the U.S. supplies about two-thirds of Canada’s vegetable imports, one-third of its fruit imports, and over half of its beef imports. Canada is also the top market for U.S. processed and prepared pork.
Loblaw also pointed to rising costs in key commodities:
- Coffee prices are up 81 per cent year-over-year due to extreme weather in Brazil.
- Cocoa prices are up 144 per cent year-over-year due to supply shortages.
- Olive oil costs have declined 54 per cent from last year but remain above pre-pandemic levels.
Loblaw says grocery prices won’t rise immediately, as stores continue selling pre-tariff inventory, but fresh produce and other imports could see price hikes within weeks. To help consumers navigate these changes, the company is introducing signage featuring a "T" symbol.
"When customers see a 'T' on the price tag, they know it has been directly sourced from the U.S. and impacted by tariffs," Bank said. "This will allow consumers to identify products sourced directly from the U.S., and also help them make informed choices and even look for alternatives."
The company is also expanding its use of a maple leaf symbol to highlight products that are "Prepared in Canada," meaning they contain domestic and/or imported ingredients.
"As previously shared, we’re also marking products with a distinctive Canadian maple leaf to help our customers who want to support products produced in Canada," Bank added.
With affordability already a challenge, Loblaw says it is working with suppliers to find Canadian or non-U.S. alternatives wherever possible. Since the beginning of the year, the company has onboarded about 30 new Canadian suppliers and is promoting domestic products in stores, online, and through its PC Optimum loyalty program.
Bank also said that once tariffs are lifted, "any tariff pricing changes will be entirely removed."
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