Canada will lift 25% counter-tariffs on U.S. goods covered by the CUSMA free trade agreement beginning September 1. The decision, announced by Prime Minister Mark Carney, covers fresh produce among other items, though steel, aluminum, and autos remain excluded.
Food economist Mike von Massow of the University of Guelph said price reductions will not be immediate. "Prices will not come down immediately, but they will come down. We're not talking months, we're probably talking weeks," he told CTVNews.ca. He noted that more perishable products, such as fresh orange juice, should see quicker price changes because of regular shipments, while products with longer shelf lives will take longer.
The Canadian Federation of Independent Grocers welcomed the decision. Spokesperson Gary Sands pointed out that with 80% of Canada's fruit and vegetables coming from the US, price drops will first be seen in the produce aisle. "If you're talking about fresh produce and those kinds of things, it could be a week or two," Sands said.
Independent grocers said they would pass on lower costs as soon as possible, though prices cannot be reduced on stock purchased under tariff-inflated conditions. Larger chains are expected to follow suit. Loblaws, Canada's largest grocery retailer, confirmed that fruit and vegetable prices will decline as inventories adjust. "In the days ahead, the price of goods in all grocery stores impacted by tariffs will start to come down. Prices will come down over time, as we sell through inventory that was purchased based on tariffed pricing," the company announced.
Both Sands and von Massow noted that consumer demand for Canadian-grown produce remains high and is expected to continue even after the trade dispute is resolved.
Source: CTV News
