The Latest on Tariffs – Some Good news
Big news announced today on the tariff front, as this afternoon Donald Trump restated his intentions to implement tariffs effective midnight tonight but shifted his position to a 10% tariff on all imported goods and 25% tariffs on foreign made vehicles. However, according to the latest Executive order. The good news is that tariffs for Canada will only be applied to non CUSMA compliant goods, which is essentially a maintaining of the status quo. A news story with more detail can be found here.
The Executive Order Fact Sheet states: “For Canada and Mexico, the existing fentanyl/migration IEEPA orders remain in effect, and are unaffected by this order. This means USMCA compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff. In the event the existing fentanyl/migration IEEPA orders are terminated, USMCA compliant goods would continue to receive preferential treatment, while non-USMCA compliant goods would be subject to a 12% reciprocal tariff.
How to handle Trump, his tariffs and the takeover threats have also become the central issue of the upcoming federal election campaign, so this indicates a major shift for the election over the next month.
Let’s hope this will bring some stability back to things – we know how disruptive this threat has been to all of you.
Federal Election Update
Today that Liberal Party of Canada announced their platform for the Agriculture and Food Processing sector, which is beyond disappointing. Specific to processing, part of their plan includes a Domestic Food Processing Fund to build Canadian domestic capacity but committed only $200 million for an industry that generates over $60 billion in annual revenue. For comparison, the Canadian auto industry is receiving $2 billion in support, but generates only ¼ of the revenue ours does. We will be sending out a news release on this tomorrow. The other major parties have not yet released a detailed program but we are expecting them imminently and will share when available.
What BCFB is Doing
We have been working with the other provincial Associations through Food & Beverage Canada (FBC) calling on all federal parties to increase support to develop a more self-reliant food system in Canada, and collectively we have made a number of recommendations. We are urging all parties to include the following 6 key commitments in their platforms, forming the basis of a long-term strategy to ensure food and beverage manufacturing remains a strong, competitive, and sustainable industry in Canada.
Call to Action: What Canada’s Food and Beverage Manufacturers Need from the Next Federal Government
1. Launch a Dedicated Food and Beverage Manufacturing Modernization Fund: Establish a specialized industry-focused fund to drive investments in equipment, automation, sustainability, and innovation—empowering manufacturers to modernize, expand, and stay ahead in an increasingly competitive market. Critically, the size and scope of this fund must be sufficient to meet the real needs of the industry, recognizing the capital-intensive nature of building, operating, and modernizing food and beverage manufacturing facilities. This fund must be designed with the realities of food and beverage manufacturing in mind, including high capital costs, aging infrastructure, and regulatory demands. It should be accessible to both large companies, small and medium-sized enterprises (SMEs), ensuring support reaches the full diversity of Canada’s manufacturing landscape.
2. Introduce Competitive Tax Incentives for Investment: Expand tax measures that encourage capital reinvestment, productivity enhancements, and long-term domestic growth. These incentives are essential to offset rising input costs, inflation, and the uncertainty created by global trade tensions. Competitive tax policies will help companies plan confidently, attract investment, avoid capital flight and ensure that food and beverage manufacturing remains rooted in Canada.
3. Advance Regulatory Relief and Modernization: Commit to effective and science-based regulations that support innovation and growth without adding unnecessary burden. This includes pausing the introduction of new, costly regulations, eliminating outdated or duplicative requirements, regulatory harmonization with key trading partners and focusing on practical, science-based approaches tailored to the realities of the food and beverage manufacturing industry. In particular, revisions are needed to the proposed Federal Plastics Registry and greenwashing provisions in Bill C-59, which introduce unclear compliance expectations and new costs without clear benefits.
4. Secure a Strong, Stable Workforce: A reliable, skilled workforce is the foundation of food and beverage manufacturing in Canada, yet labour shortages continue to constrain growth and disrupt operations. Ensure labour remains a top priority by supporting:
• A sector-specific immigration stream tailored to the unique needs of food and beverage manufacturing—recognizing that these roles are critical, year-round, and often difficult to fill through domestic recruitment alone.
• Expanded pathways to permanent residency for essential foreign workers already contributing to Canada’s food system.
• Investments in skills training and upskilling to prepare the next generation of workers for a modern, technology-enabled food and beverage manufacturing industry. This includes everything from line operators and maintenance technicians to quality assurance and food safety experts.
5. Strengthen Supply Chains and Infrastructure: Food and beverage manufacturers rely on efficient, reliable supply chains to receive ingredients, move goods, and deliver products across Canada and to global markets. The next federal government must implement the National Supply Chain Task Force recommendations, invest in critical infrastructure, and eliminate interprovincial trade barriers to support a stronger, more integrated and resilient food system.
6. Promote Canadian-Made Food and Beverage Products – At Home and Abroad: Develop a national strategy to elevate the profile of food and beverage products manufactured right here in Canada—both domestically and on the global stage. This strategy should highlight Canada's role as a reliable supplier of safe, high-quality food, while showcasing the value of products made by companies that invest in Canadian facilities, source from Canadian farmers, and employ Canadian workers.