Food and Beverage Canada calls for strong govt. action in response to U.S. tariffs

The food and beverage manufacturing industry plays a critical role in Canada’s national economy, as it represents the country’s largest manufacturing sector by employment and is a significant contributor to GDP. U.S. tariffs will have far-reaching consequences for workers, businesses, and consumers across the country.

As the national association for F&B manufacturers, Food and Beverage Canada (FBC) urges continued efforts towards a strong, co-ordinated, and strategic response to safeguard Canada’s economic interests and protect the nation’s food and beverage manufacturing industry as much as possible from the negative impacts of U.S. tariffs.

“This is a moment for Canada to show leadership and stand firm against unfair trade practices,” said Kristina Farrell, CEO of Food and Beverage Canada. “We must act swiftly to protect our industry and the communities that depend on it.”

In a statement released earlier this morning, FBC calls for increased diplomatic efforts to de-escalate trade tensions while also preparing to defend Canadian producers, businesses, and jobs, as the U.S. is a key trading partner for the industry, with billions in exports and essential imports supporting Canada’s supply chains.

FBC urges a collaborative approach between all levels of government, industry stakeholders, and trade partners to ensure a comprehensive response that prioritizes Canada’s economic interests.

It recommends implementing reciprocal tariffs on finished U.S. goods (final, ready-for-sale food and beverage products) rather than essential inputs to protect Canadian manufacturers while minimizing disruptions to supply chains.

FBC renews its demand of reducing interprovincial trade barriers to enhance efficiency and support domestic food production, while expanding incentives for automation, modernization and production capacity specific to food and beverage manufacturing to ensure the long-term resilience of the industry. It suggests introducing Buy-Canadian campaigns to shore up sales for Canadian businesses and addressing regulatory burdens that limit the competitiveness of Canadian food and beverage manufacturers in domestic and global markets.

FBC also requests for financial relief measures for food and beverage manufacturers to help them minimize impacts on workers and maintain food production as well as the implementation of remission orders to ensure continued access to critical food ingredients, packaging, and processing inputs necessary for the manufacturing of food and beverage.

“While the US descends into protectionism and tries to create a wall around its borders, let us pursue a more noble agenda,” says Michael Mikulak, executive director, Food & Beverage Manitoba. “We are and always have been a nation that celebrates diversity as strength. We are over-indexed on US exports, and while our supply chains are deeply integrated, we need to invest in export infrastructure, fix our ports, and support our companies as they seek trading partners who understand that trade is not a zero-sum game. The world wants what we have, so let’s get out there.”

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