How Tariffs Impact Food Prices in Canada

Tariffs are one of the most misunderstood parts of food pricing. But they play a major role in what you pay at the grocery store.

What is a Tariff?

A tariff is a tax placed on imports from another country. It is often used to protect local producers from cheaper foreign goods or as leverage during trade disputes.

How Do Tariffs Affect Food Prices?

When Canada imposes tariffs on imported food, or when other countries respond with their own tariffs, the cost goes up for Canadian distributors and grocery stores. That cost is passed on to you.

Real Examples in Canada

• Dairy and Poultry: Canada has a supply management system that limits imports of eggs, milk, and chicken. Imports that exceed quota levels are hit with steep tariffs, sometimes over 200 percent.

• Processed Foods: Some snack foods and packaged products from the U.S. have tariffs that make them more expensive in Canada.

Source: Government of Canada – Import Control List, Global Affairs Canada

What Can You Do About It?

While you cannot avoid tariffs entirely, shopping for local alternatives can help. Food grown or produced in Canada is not affected by these import taxes, which means local options can sometimes be the better deal.