March 4, 2025 (OTTAWA) – On behalf of Food and Beverage Canada, Food and Beverage Ontario, Food & Beverage Manitoba, Conseil de la transformation alimentaire du Québec (CTAQ), Food & Beverage Atlantic, BC Food & Beverage and the Alberta Food Processors Association, we are highlighting on deep concern regarding the impact of newly imposed U.S. tariffs on Canadian food and beverage manufacturers.
We appreciate the federal and provincial governments’ advocacy and leadership to date in protecting Canada’s interests in the face of the changing relationship with the U.S. As Canada’s food and beverage manufacturing industry plays a critical role in our national economy – representing the largest manufacturing sector by employment and a significant contributor to GDP – such tariffs will have far-reaching consequences for workers, businesses, and consumers across the country.
The U.S. is a key trading partner for our industry, with billions in exports and essential imports supporting our supply chains. To safeguard Canada’s economic interests and protect our food and beverage manufacturing industry as much as possible from the negative impacts of these tariffs, we urge continued efforts towards a strong, coordinated, and strategic response, including:
Diplomatic and Trade Measures: With tariffs now in place, it is critical to escalate diplomatic efforts to de-escalate trade tensions while also preparing to defend Canadian producers, businesses, and jobs.
A Unified Team Canada Strategy: A collaborative approach between all levels of government, industry stakeholders, and trade partners to ensure a comprehensive response that prioritizes Canada’s economic interests – in particular, jobs and workers.
Strategic Tariff Response: Implementing reciprocal tariffs on finished U.S. goods – final, ready-for-sale food and beverage products – rather than essential inputs to protect Canadian manufacturers while minimizing disruptions to supply chains.
Strengthening Industry Competitiveness: Reducing interprovincial trade barriers to enhance efficiency and support domestic food production, expanding incentives for automation, modernization and production capacity specific to food and beverage manufacturing to ensure the long-term resilience of the industry, introducing Buy-Canadian campaigns to shore up sales for Canadian businesses, and addressing regulatory burdens that limit the competitiveness of Canadian food and beverage manufacturers in both domestic and global markets.
Support for Affected Businesses and Workers: Providing financial relief measures for food and beverage manufacturers to help them minimize impacts on workers and maintain food production and implementing remission orders to ensure continued access to critical food ingredients, packaging, and processing inputs necessary for the manufacturing of food and beverage.
“This is a moment for Canada to show leadership and stand firm against unfair trade practices,” said Kristina Farrell, CEO of Food and Beverage Canada. “We must act swiftly to protect our industry and the communities that depend on it.”
“While the US descends into protectionism and tries to create a wall around its borders, let us pursue a more noble agenda,” says Michael Mikulak, executive director, Food & Beverage Manitoba. “We are and always have been a nation that celebrates diversity as strength. We are over-indexed on US exports, and while our supply chains are deeply integrated, we need to invest in export infrastructure, fix our ports, and support our companies as they seek trading partners who understand that trade is not a zero-sum game. The world wants what we have, so let’s get out there.”
Food and Beverage Canada, alongside the six provincial and regional food and beverage manufacturing associations, are proud to represent companies with manufacturing here in Canada. We stand ready to work with the federal and provincial government in standing up for Canada and implementing solutions that will protect Canada’s food and beverage manufacturing industry.