Canada’s largest grocer, Loblaw Cos. Ltd., has introduced a new symbol to denote products affected by tariffs in its stores. The symbol will appear on signs in all Loblaw stores, including grocery banners and Shoppers Drug Mart locations. Tariffs were imposed by US President Donald Trump in early March, but he paused those tariffs for goods compliant with the United States–Mexico–Canada Agreement (USMCA) until April 2. Nonetheless, Canadian counter-tariffs on roughly $30 billion worth of U.S. goods remain in place. This means many goods coming into Canada are now facing inflationary pressure, including food items such as fruits and vegetables, spices, pickles, meat, poultry, nuts, condiments, and more.
Loblaw president and CEO Per Bank stated that while the company will continue to work with suppliers to reduce the impact of these tariffs, Canadians should be prepared to pay more for goods originating from the U.S. in the weeks ahead. The Canadian market is reliant on the U.S. for some items that are not easily sourced elsewhere at the same prices and in the same quantities. The “T” symbol is likely to show up first in the fruit and vegetable aisles, where signs will be appearing in early April.
For packaged products, price hikes will not be visible as quickly as produce, as Loblaw already has stock in its distribution centers, which was shipped before the tariffs were instituted. Customers can be assured that any tariff pricing changes will be entirely removed when tariffs come off.
Loblaw and other grocers have faced scrutiny in recent years as grocery prices soared and the cost of just about everything else. The new labeling effort at Loblaw aims to clearly indicate the reason for the coming price increases and assist shoppers seeking to avoid U.S.-sourced products.
Source: Globe and Mail
Source: The Star
