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President Donald Trump’s 30-day pause on Canada and Mexico tariffs appear to be coming to an end at 12:01 a.m. Tuesday, which has caused grocers like Loblaw in Canada to reduce the time spent reviewing price increase requests from suppliers, several Canadian news outlets reported over the weekend. President Trump said on Monday there was no chance there would be a last-minute deal struck with either Canada or Mexico to avoid the tariffs.
Under normal conditions, Loblaw reviews price increases over a 12-week span, but that has been cut in half.
“There’s still a lot we don’t know, but we’re doing everything we can to lessen possible impacts for both our suppliers and ultimately for customers,” Loblaw said in an emailed statement to Supermarket News. “While we’re already one of the biggest buyers of Canadian-made products, we are looking at our suppliers and sourcing to strengthen those relationships and making it easier for customers to find Canadian-made options in stores and online.”
Throughout his presidential campaign, Trump vowed to impose 25% tariffs on all imports from Canada and Mexico if the two countries did not increase border security and halt the flow of synthetic opioids, like fentanyl, into the U.S.
But Commerce Secretary Howard Lutnick stated on Sunday that Trump might not enforce the entire 25%, according to Reuters.
If the U.S. tariffs are implemented, produce and packaged goods will carry higher price tags in Canada. Canada heavily relies on fruits—especially berries, bananas, and oranges—and leafy vegetables from the U.S. during the winter, and much of the packaging is done there. Dairy, poultry, eggs, and fish may also become more expensive.
Last month, Canada announced it would retaliate if tariffs were levied and compiled a list of $30 billion worth of American goods that would be impacted. The counter-tariff plan would affect fruits and fruit juices in U.S. grocery stores, as well as poultry, beef, and vegetables.
Sylvain Charlebois, senior director of Dalhousie University’s Agri-Food Analytics Lab, told Canadian Television that Canada will become more dependent on doing business with Mexico for produce, as the tariffs will not apply to goods trucked through the U.S. However, some suppliers may stop doing business with Canadian grocers altogether.
Meanwhile, during its earnings call in late February, Loblaw reported seeing an uptick in Canadian grocery products. The grocer said less than 10% of its inventory comes from the U.S.
If Mexico also imposes retaliatory tariffs, vegetables, especially avocados, will be priced higher in the U.S. Frozen juices, fruit, beer, and tequila will also cost more. In 2024, the U.S. imported $9.9 billion worth of vegetables and more than $11 billion of fruit and frozen juices from Mexico, according to the Washington Post.