Despite a common misconception, tariff-related countermeasures remain in place and continue to affect the cost of many goods, said Loblaw Companies Limited in its latest July Food Inflation Report.
“To help customers make informed choices, Loblaw is expanding its instore and online labelling program to mark nearly 7,500 products with a “T” symbol, indicating those directly impacted by tariffs. Behind the scenes, about one-third of all inflation-related cost increases submitted by suppliers are tied directly to tariffs — reinforcing why clarity and transparency remain a priority,” it said.
In June 2025, food prices in Canada rose by 2.8% compared to last year — a slower pace than the 3.3% increase seen last month but still higher than the headline inflation rate. The drop in fresh vegetable prices, which fell by 3.1%, helped ease cost pressure on grocery bills, with a welcome shift to more local produce as we head into the summer, said the report.
“The U.S. government continues to throw trading partners into chaos with shifting goal posts during negotiations. At time of writing, many countries (including Canada) have not responded to the latest threats of new tariffs effective August 1 and continue to negotiate; however, it’s important to note many counter tariffs remain in Canada,” it said.
“How these potential tariffs play out have different impacts on food pricing in Canada: 1. If the Canadian government imposes further counter-tariffs on U.S. food, prices at grocery stores are likely to increase; 2. U.S. tariffs on other countries where ingredients are sourced will potentially see higher prices on finished goods destined for Canada. For example, vegetables, proteins, spices, packaging and other ingredients sourced globally by U.S. manufacturers are facing import tariffs into the U.S, increasing the overall production cost; and 3. New trade agreements are signed, and tariffs (or Canada’s counter tariffs) are removed, which would reduce prices of those products,” explained the report.
“The summer months bring some of the best quality and lowest pricing options for certain fresh produce for Canadians. Locally grown lettuces, celery, and field vegetables (beans, eggplant and zucchini) come into season. As international options include higher freight costs and foreign exchange rates, during peak growing season the cost of these can typically be 15-30% cheaper than spring months.”
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