Canada’s food processing sector is becoming increasingly vulnerable – not merely due to global market volatility, but as a direct consequence of Ottawa’s policy decisions.

In choosing to retaliate against U.S. protectionism with formal counter-tariffs, Canada now finds itself aligned with China as one of only two countries to pursue such measures. While these actions may serve domestic political optics, they are inflicting measurable and lasting harm on Canada’s food manufacturing ecosystem.

Tariffs on U.S. food ingredients and critical inputs such as food-grade aluminum and steel are rippling through the supply chain. Large multinational processors often have the ability to absorb or deflect these added costs, passing them on to dominant grocery retailers like Loblaw, Sobeys, and Metro. Those grocers, in turn, push the increases to consumers. The result is a persistent layer of food price inflation that is now entrenched across many product categories.

But the deepest strain is being felt by Canada’s smaller,........

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