Responding Well to Trump Tariffs

Trade expert Dr. Ann Penner joined us last week to share important insights on the evolving trade landscape. With new U.S. tariffs coming into effect and Canada preparing to respond, here’s what you need to know and how CHFA is supporting you.

February 20, 2025

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Note: You will need to login to your CHFA account to access the recording.

New U.S. Tariffs – What’s Happening?

February 1, 2025 – The U.S. President threatens a 25% tariff on all Canadian and Mexican imports and an additional 10% on Chinese goods already subjhttps://chfa.ca/app/uploads/2025/02/CHFA-Webinar-Slides-February-13-2025.pdfect to tariffs.

February 4, 2025 – Canada and Mexico secure a 30-day pause on tariffs in exchange for increased border security and drug enforcement measures.

February 9, 2025 – While en route to the Super Bowl, the U.S. President threatens 25% tariffs on steel and aluminum from multiple countries, including Canada.

February 10, 2025 – Executive Order signed: 25% tariffs on steel and aluminum from Canada, Mexico, the EU, Japan, and others; Ukrainian exemptions revoked.

February 11, 2025 – U.S. threatens 50-100% tariffs on Canadian-made cars.

March 4, 2025 – End of the 30-day pause; potential for 25% tariffs on all Canadian imports.

March 12, 2025 – Steel and aluminum tariffs take effect.

April 1, 2025 – U.S. will release a trade study on Canada, Mexico, and China.

2026 – CUSMA official renegotiation begins (but has already begun now), pending U.S. congressional approval.

How This Could Impact You

Higher Costs on Ingredients & Products – Expect rising costs for U.S.-sourced ingredients, packaging, and finished goods.

Supply Chain Disruptions – Businesses may need to reassess sourcing and find alternative suppliers.

Job Losses & Economic Impact – Without retaliation, job losses could increase by 2.2%, and with retaliation, by 3.0%. The Canadian dollar could drop to $0.65 USD by late 2025, reducing purchasing power.

What You Can Do

Review & Diversify Supply Chains – Reduce reliance on U.S. imports and explore alternative suppliers. Review the list of U.S. products facing tariffs.

Labeling & Manufacturing – Ensure compliance with "Made in Canada" vs. "Produced in Canada" rules. Learn more.

Engage with Government at all levels– Advocate for tariff relief and business support—CHFA is pushing for industry protections, but your voice matters.

Expand Export Markets – CHFA has connected members with buyers from Hong Kong, Taiwan, China, and Malaysia and is working to grow global opportunities.

Exploring Export Markets – We Want to Hear From You!

To help members diversify and grow internationally, CHFA has already supported funded buyers from Hong Kong, Taiwan, China, and Malaysia to connect with Canadian suppliers. We are exploring new opportunities and want to hear from you:

Which export markets are you targeting?

What support do you need to access global buyers?

Please share your export goals with us so we can tailor our efforts to help your business succeed.

How CHFA is Supporting You

CHFA has entered into a contract with Dr. Penner to ensure expert trade advice is provided to CHFA for its members during uncertain times.

CHFA is actively engaging with the government to ensure food and NHP businesses are represented in Canada’s trade response.

We are pivoting our advocacy strategy and will be looking to advocate on:

Tariff relief measures for our sector.

Support for Canadian manufacturers and importers impacted by higher costs.

Expanded trade opportunities for businesses looking to shift supply chains.

CHFA is dedicated to keeping you informed and prepared by delivering the latest updates, targeted educational resources, and actionable insights into new market opportunities.

Stay tuned for more information.

If you have any questions, please reach out to us at regulatory@chfa.ca