Restaurants Canada has endorsed the federal government’s retaliatory tariffs on U.S. goods, stating that the measures struck a reasonable balance between safeguarding Canadian interests and minimizing disruption to the food sector.
In a statement, Restaurants Canada commended the government for considering its input and avoiding tariffs on many priority food products it identified. This move, the organization anticipates, will help limit increased pressure on food costs and menu prices, thus protecting jobs and the Canadian food supply chain.
Kelly Higginson, the President and CEO of Restaurants Canada, expressed the industry’s support for the government’s actions. “We appreciate that they’ve listened to our concerns and avoided tariffs on many of the priority food products we identified,” she said.
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However, Restaurants Canada also noted areas of concern, including some packaging and restaurant equipment, which they are currently evaluating. They plan to use the consultation period to seek targeted exemptions where adequate Canadian or alternative supply is lacking.
The group is also urging the government to extend the temporary suspension of the federal fuel excise tax on gasoline and diesel beyond its current September 7 expiration. This, they argue, would help businesses manage broader economic pressures arising from the trade dispute.
If implemented as proposed, these measures could have far-reaching effects on supply chains across various industries, extending beyond the restaurant sector. The government’s openness to specific industry concerns during the ongoing consultation process suggests room for further refinement.
The restaurant sector plays a significant role in the Canadian economy. According to Restaurants Canada, the industry generates $125 billion annually and directly employs 1.2 million Canadians, with nearly 40 percent of the workforce comprising youth. The sector supports another 287,000 jobs across the broader economy.
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Restaurants purchase approximately $43 billion in food and beverages each year, with about $30 billion spent on Canadian suppliers. This makes the sector a major purchaser of Canadian agricultural products, contributing significantly to the food economy.
“Canada’s restaurant industry is deeply connected to domestic agriculture,” Higginson stated. “Ensuring stable supply chains and maintaining manageable food costs benefits not only our members but the entire food production system.”
Restaurants Canada remains committed to working with the government to address any outstanding issues. Higginson acknowledged, “There are still some important matters to resolve, and we will continue working with government to get those right.” The organization’s primary goal is to ensure Canada’s response is strategic, carefully considering how tariffs affect food costs, supply chains, employment, and investment across the sector.