How will Tariffs Affect Food Prices in Canada

Here at FreshFood4Life.com you know that we’re always concerned with growing in the gardenhome garden A designated area around a residential property where individuals cultivate plants, fruits, vegetables, or ornamental plants for personal use. It comprises a farming system that combines physical, social, and economic functions on the area of land around a family home, providing a sustainable source of food and other benefits for the household, extended family, and friends.. The thing is that the Canada-USA trade war has been in the news a lot. With all this talk about the tariffs and reciprocal tariffs being implemented by the USA and Canada against each other, the biggest questions on our brains is: 1) How will food prices be affected in Canada? 2) What to do the make sure we don’t suffer with the tariffs? If these two questions are on your brain as well, join us as we discuss the matter and arrive at a good outcome for us!

What Are Tariffs?

The word tariff is just a fancy word to describe the word tax. When the USA says it is “placing tariffs on Canadian imported goods” it really means it is “placing taxes on Canadian imported goods”. And when Canada says it is “placing tariffs on USA imported goods” it really means that it is “placing taxes on USA imported goods”.

From basics of school we know that taxes do a few things. First, it generates revenue for the government implementing those taxes. Second, it is applied against all the people living inside the country where the taxes are applied. Thirdly, if the taxes are high enough, it acts as a deterrent against the people buying the item, or behaving in a certain way.

What Happens When Tariffs Are Implemented

When the USA applies tariffs(taxes) to Canadian imported goods it means that 1) the US government will generate more tax revenue against all the people living in the USA who buy those goods, 2) the prices of those Canadian products imported into the US will go up as the importers pass 100% of the new taxes onto their customers.

When the Canadian government applies tariffs(taxes) to USA imported goods it means that 1) the Canadian government will generate more tax revenue against all the people living in Canada who buy those USA-made goods, 2) the prices of those USA-made products imported into Canada will go up as the importers pass 100% of the new tax onto their customers, 3) Unless the product is an essential item, it will cause poor and working class people living in Canada to adjust their buying habits.

Tit-For-Tat (Eye for an Eye)

When the American government decided to implement their new tax on the American people using Canadian imported products as the excuse, the Canadian government was upset and offended by this. The Canadian government in a show of anger decided to implement a new tax against all people living in Canada using the USA imported products as their excuse.

So the new taxes will drive up the price of all imports immediately as importers pass on 100% of that new tax unto the purchasers of the product. When the US President decided to implement a 25% tariff(tax) on certain Canadian imports, Canada retaliated with corresponding tariffs(taxes) on USA-made products, encompassing food items such as orange juice, peanut butter, alcohol, and coffee.

Then the USA gets offended that Canada reacts like that so the US government reacts by adding more taxes(tariffs) on the people living in America. Then Canada reacts by adding more taxes(tariffs) on the people living in Canada. Left unchecked, this will spiral out of control until the Canadian people and American people are broke and both governments have a huge tax revenue.

How It Impacts Our Food

Rising taxes always increase the price of products it is applied against. And rising tariffs(taxes) are no different. Here’s some of the impacts to be felt:

  • Immediate Increased Costs for Imported Foods: Products directly affected by tariffs, such as certain fruits, vegetables, meats, and processed foods from the USA, have seen price hikes. For instance, items like lettuce, tomatoes, avocados, orange juice, peanut butter, and alcohols, primarily imported from the USA, have become more expensive due to the tariffs(taxes).
  • Rising Production Costs: Canadian food manufacturers relying on USA ingredients or packaging materials now face higher input costs due to the Canadian import tax(tariff). This scenario is particularly challenging for products like peanut butter, where peanuts sourced from the USA are subject to the 25% tariff, thereby increasing production expenses.
  • Supply Chain Disruptions: Trade uncertainties and potential delays in cross-border shipments can lead to shortages or inconsistent availability of certain food items. This unpredictability may result in price volatility and reduced consumer choice.

By now you should fully understand that the tariffs(taxes) are going to affect you personally and the products you typically buy in the groceries and supermarkets.

What Can Home Gardeners Do

For us, we look at the problem from a practical perspective. You make a list of food items that you would normally buy in the store and see how you can grow those instead. And if you can’t grow them look for another local source.

PlantBuy In GroceryGrow At HomeFind Other Source
TomatoesNoYes
CucumbersNoYes
OrangesYesNoYes
StrawberriesNoYesYes
LettuceNoYes
SpinachNoYes

If you do this with a variety of produce items, you can reduce your reliance on strawberries and lettuce imported from the USA and lots of other fresh produce items. Alternatively, if you want to save money and live near a farmer, you could buy directly from the farmer as you might save a lot of money as you cut out the middleman.

If you’ve been an active home gardener, you’re already ahead of the curve in being able to weather food price shocks. If you have not been gardening before, then now is the time to get back into gardening.

Until next time, continue to learn and grow!

If you enjoyed that article, you might enjoy this video on 5 Survival Crops Everyone Should Plant!

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