Just as the price of food started to cool in Canada, grocery stores may have to hike their prices to offset lost revenues from the United States.
Food Professor at Dalhousie University Sylvain Charlebois says currently, produce prices are stable, with veggie prices down from last year and fruit prices only slightly up. He says bread and dairy are also stable, with only the cost of meat on the rise.
However, as American grocery stores continue to buy from American producers in the face of tariffs and counter tariffs, many have pulled their business in Canada due to uncertainty.
Therefore, “As a Canadian company, if you lose a major American account, you’re forced to revise your pricing strategy domestically,” he explains.
He suggests consumers could see this price uptick as soon as early fall. He expects dry, packaged goods, bakery items, as well as goods in the freezer aisle will see the impacts first.
He adds that Ottawa’s counter tariffs are also making Canadian goods more expensive, such as tea and coffee. Prime Minister Carney paused most counter tariffs for a period from April to October, and Charlebois is watching closely to see what will happen once October rolls around.