Ketiz Singh

Let’s Talk about the Impact of Tariffs on Food and Agriculture Industries

Meet San Shala, Senior Director of Agra Food Analytics Lab at Del Housey University

Hey there, young readers! Today, we’re diving into the world of tariffs and their effects on the food and agriculture industries. Join me as I chat with San Shala, a brilliant mind in this field. Let’s get started!

The Government’s Response and the Call to Buy Canadian

So, the government is urging people to buy Canadian products to combat the impact of tariffs. But is it really doable, especially when you’re shopping at the grocery store? Well, according to San Shala, it might require a bit more effort. With tariffs on goods coming in from the US, some sellers may opt out of selling to Canada altogether. On the bright side, the policy for Mexican products trucked through the US won’t be affected by tariffs. This means we might see more affordable products from Mexico on our shelves soon. A silver lining, don’t you think?

Surprising Tariffs on Everyday Foods

Did you know that dairy products entering Canada face tariffs of 245 to 320%, while poultry and eggs are at 238%? Fish isn’t off the hook either, with tariffs around 100%. These high tariffs are a part of Canada’s supply management policy, which aims to protect our market. While this policy has been around for 50 years, many Canadians might not be aware of its existence. However, President Trump is well aware of these tariffs and could use them as a bargaining chip in future trade negotiations.

The Impact on Pricing and Contracts

With the potential price hikes due to tariffs, some American companies may hesitate to ship food to Canada. This could lead to contractual issues and pricing adjustments. Companies that foresaw this situation might have already factored in price increases. But the bigger concern lies with the Canadian dollar, which could weaken further due to these trade tensions. A weaker currency could make imported goods more expensive in the coming months, making it a challenging time for importers.

Phew, that was a lot to take in! Thanks for joining us on this insightful discussion about tariffs and their effects on our food and agriculture industries. Stay informed and stay curious, young readers. Until next time!