Canada to Lift Tariffs on U.S. Goods: Grocery Prices Set to Drop

UPDATE: Canada will officially lift retaliatory tariffs on compliant U.S. goods starting September 1, a move expected to significantly lower grocery costs across the nation. The decision comes after months of pressure from independent businesses and consumers who have been grappling with rising prices due to a 25% counter-tariff on $60 billion worth of U.S. imports.

Brayden Halayko, manager of Downtown Family Foods in Winnipeg, expressed cautious optimism about the tariff relief. “It’s definitely had a big impact,” he stated. “We’ve seen huge spikes in prices for items like coffee, Campbell’s soup, and citrus fruits.” Despite the anticipated price drops, experts warn that immediate relief may not be felt until mid-October.

The tariffs were initially imposed in response to U.S. threats of a 25% tax on Canadian exports, later raised to 35% on August 1. Prime Minister Mark Carney announced the tariff rollback on August 22, indicating a renewed focus on trade relations under the Canada-U.S.-Mexico Agreement (CUSMA).

Sylvain Charlebois, a food policy expert from McGill University, noted that the elimination of tariffs on items like coffee and oranges will likely lead to noticeable price reductions. Statistics Canada data highlights that the price of oranges surged from $3.81 per kilogram in January to $5.57 in June, while coffee prices climbed from $6.63 to $8.55 for 340 grams in the same period.

Barry Prentice, director of the University of Manitoba’s Transport Institute, emphasized that Canadian consumers have borne the brunt of these tariffs. He stated, “It was a smart move to drop these tariffs. We were only hurting ourselves, and it’s time to move forward.”

Despite the anticipated benefits, some shoppers, like Dennis Evachewski, remain committed to supporting local products. “We’re still going to try to get Canadian as much as possible,” he remarked. Others, like Bienvinido Jamoyot, are eager to purchase U.S. goods without the added costs of tariffs.

Halayko urges patience among customers as the grocery industry adjusts. “The tariffs are coming off, which is going to be a benefit for everybody. We’re doing our best to ensure prices aren’t too hard-hitting on the customers’ wallets,” he said.

As the clock ticks down to September 1, consumers and businesses alike are watching closely for the impact of this significant trade development. Keep an eye on grocery prices in the coming weeks as the effects of these tariff changes unfold.