In the news: Why Canadian grocery shoppers have been seeing discounts, despite tariffs
March 7, 2025 ·
Contributed by: Mariya Postelnyak, Consumer Affairs reporter
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Days into the rollout of U.S. tariffs on Canadian imports and Canada’s counter-tariffs, some Canadian shoppers were seeing grocery prices drop or hold steady in the immediate term, despite warnings of impending increases.
U.S. President Donald Trump granted another one-month reprieve on sweeping 25-per-cent tariffs on Canadian and Mexican imports Thursday afternoon, nearly three days after they took effect. While the tariffs had been widely expected to lead to immediate spikes in grocery prices, many Canadian shoppers have reported steep discounts, especially on American products.
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A push to “buy Canadian,” combined with low consumer confidence – it dropped to its lowest level in more than a year in February, according to the Conference Board of Canada – mean some prices will drop before they rise, despite the added challenges for businesses on both sides of the border.
In the short term, it’s not a surprise that the price of many Canadian products remains unchanged, while American products boast steep discounts, said François Neville, a professor of strategic management at McMaster University’s DeGroote School of Business.
While the full impact of tariffs certainly hasn’t hit, “we cannot dismiss the possibility that the ‘Buy Canadian’ movement, which has been gaining traction and growing for over a month now, has reduced the demand for certain American products,” he said.
Read the full article in the Globe and Mail.
