If the reality of tariffs hasn’t hit you just yet, be prepared for them to now. A recent report from Loblaw Companies Limited spells bad things for grocery shoppers all across Canada.
Prices are about to rise, and it doesn’t look like they’re going to stop.
U.S. PRODUCTS INCREASE
The Canada-U.S. trade war has been bad for business. That isn’t a shocking fact– Canadians have been feeling the effects of tariffs for some time now, but now it’s our groceries’ turn to be taken by them.
If you shop at any of the Loblaw Companies Limited grocery stores like No Frills, Real Canadian Superstore, or Loblaws, then you’ll want to know about what groceries you’ll be paying more for.
Loblaw Companies Limited just released their May 2025 Food Inflation Report. It states that “thousands of different items continue to have tariffs applied”, quite notably on things like produce, rice, pasta, dairy, and coffee. Health and wellness products are also affected, such as soap, shampoo, and cosmetics.
Somewhere around 6,000 items can be expected to be affected by tariffs, “about half of which are food.”
The report also shared some notes on price increases on key products. This included meat, with its prices having jumped by 16% compared to 2024, “due to lower supply.” Cocoa costs have also increased.
Luckily, things like coffee have had their costs plateau, and eggs have not seen their prices spike like in the U.S.. Although, there is a possibility for that to change as “U.S. pricing impacts manufacturing and liquid egg prices here.”
ALTERNATIVES TO THE U.S.
Although these price hikes aren’t ideal, things could have been much worse. As the title of one section states, “Food inflation remains high but outlook moderates.” The Government of Canada’s six-month reprieve especially helped in reducing the “risk of a sharp or prolonged spike in food inflation”, as well as Canada’s stabilizing dollar.
As a way to mitigate continued impacts from tariffs, many grocers are “sourcing from new countries and are helping customers make more informed choices through labelling.” By shifting supply chains away from the U.S., it is hoped that prices can be kept low for customers.
While the Canada-U.S. trade war continues to simmer, don’t expect grocery prices to stay as they always were. As prior inventories sell through, new inventories will come in with those new tariff costs.
