{"id":61968,"date":"2025-07-16T12:00:10","date_gmt":"2025-07-16T12:00:10","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2025\/07\/16\/posthaste-food-manufacturers-take-drastic-measures-to-fight-u-s-tariffs\/"},"modified":"2025-07-16T12:00:10","modified_gmt":"2025-07-16T12:00:10","slug":"posthaste-food-manufacturers-take-drastic-measures-to-fight-u-s-tariffs","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2025\/07\/16\/posthaste-food-manufacturers-take-drastic-measures-to-fight-u-s-tariffs\/","title":{"rendered":"Posthaste: Food manufacturers take drastic measures to fight U.S. tariffs"},"content":{"rendered":"<p> \n<br \/><br \/>\n<iframe loading=\"lazy\" height=\"100%\" src=\"https:\/\/cdn.jwplayer.com\/videos\/CuCu8RrX.mp4\" width=\"100%\"><\/iframe><br \/>\n<img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/01\/fp-posthaste-LOGO-01132023.jpg\" title=\"\" \/><\/p>\n<p> Canadian food manufacturers and distributors are frantically renegotiating longstanding contracts and trying to expand their footprint internationally to combat steep United States tariffs, according to <\/p>\n<p>                        a recent report by Richter LLP<\/p>\n<p>                        . <\/p>\n<p> Canadian exporters face a blanket 25 per cent tariff from the U.S., though many exports are exempt if they comply with the Canada-U.S.-Mexico Agreement. <\/p>\n<p> To make matters worse, U.S. President Donald Trump has threatened to hike the tariffs to 35 per cent on Aug. 1. <\/p>\n<p> \u201cTariff disruption is no longer a temporary hurdle; it is a defining feature of the North American trade environment,\u201d the report said. \u201cCompanies that fail to evolve will remain exposed.\u201d <\/p>\n<p> Canada\u2019s food industry already heavily relies on U.S. trade, with more than 60 per cent of its agri-food exports heading south, <\/p>\n<p>                        according to the Canadian Federation of Agriculture (CFA)<\/p>\n<p>                        . <\/p>\n<p> \u201cWith protectionist sentiments on the rise, our cross-border supply chains face serious risks,\u201d the CFA said on its website. \u201cNow, more than ever, dialogue, advocacy and collaboration are essential to ensure our agricultural sectors remain strong and mutually beneficial.\u201d <\/p>\n<p> To protect themselves, food manufacturers have renegotiated deals with longtime suppliers, added clauses into their contracts and have looked at exporting their products to Asia, Mexico or Europe. <\/p>\n<p> \u201cThere is now a shift from transactional purchasing to more strategic, risk-aware procurement,\u201d the Richter report said. \u201cSome companies have successfully negotiated volume-based discounts or revised payment terms with suppliers, relying on scale or long-term partnership potential to reduce exposure to tariff-driven price fluctuations.\u201d <\/p>\n<p> The measures have had varying levels of success, however, because many food suppliers have significant pricing power, the report said, leaving some manufacturers with no choice but to accept the costs. <\/p>\n<p> Despite the measures meant to mitigate tariffs, a lot of the cost increases are still passed down to the consumer. <\/p>\n<p> \u201cTo manage rising input costs, many food operators have implemented selective price increases, the report said. \u201cHowever, customer resistance, particularly in value-driven segments, continues to limit how much of those increases can be passed through.\u201d <\/p>\n<p> As food costs climb, manufacturers are considering different price models to keep costs down, including bundling items together as demand for higher-end products slows. <\/p>\n<p> Richter recommends food manufacturers diversify their supplies, get creative to bypass tariffs, use analytics to forecast tariff scenarios and reduce their reliance on the U.S. market by looking elsewhere. <\/p>\n<hr \/>\n<p> <em><strong>\u00a0Sign up here to get Posthaste delivered straight to your inbox.<\/strong><\/em> <\/p>\n<hr \/>\n<p> <strong><br \/> <img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-1758646\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2019\/02\/subhead_leading.png\" width=\"838\" \/><\/strong> <\/p>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/07\/june-2025-inflation.jpg\" title=\"\" \/><\/p>\n<p> Canada\u2019s inflation rate climbed to 1.9 per cent in June, up from 1.7 per cent in May. <\/p>\n<p> Prices climbed in seven of the major categories within the index, while gas prices fell at a slower rate compared to May, which helped prop the inflation figures higher. <\/p>\n<p> Without energy, inflation rose to 2.7 per cent. <\/p>\n<p> Economist say the inflation numbers all but end speculation of another interest rate cut later this month. <\/p>\n<p> Read more here.\u00a0 <\/p>\n<hr \/>\n<p><img decoding=\"async\" alt=\"\" data-has-syndication-rights=\"1\" data-license-id=\"\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/07\/subhead-1.jpg\" title=\"\"><\/p>\n<ul>\n<li>Prime Minister Mark Carney will make an announcement on the steel industry while touring a Hamilton, Ont., steel plant this morning.<\/li>\n<li>G20 finance ministers and central bank governors meeting in South Africa continues<\/li>\n<li><strong>Today\u2019s Data: <\/strong>U.S. producer price index for June<\/li>\n<li><strong>Earnings: <\/strong>Johnson &amp; Johnson, Bank of America Corp., Morgan Stanley, Goldman Sachs Group Inc., Kinder Morgan Inc., United Airlines Holdings Inc.<\/li>\n<\/ul>\n<p> \u00a0 <\/p>\n<p> <strong><img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-3080180\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2022\/07\/subhead_marketsam.jpeg\" width=\"838\" \/><\/strong> <\/p>\n<p><img decoding=\"async\" alt=\" Financial Post\" data-has-syndication-rights=\"1\" data-license-id=\"3887395\" data-portal-copyright=\"\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2025\/07\/chart-0716-ph.jpg\" title=\" Financial Post\" \/><\/p>\n<figure class=\"embedded-image\"><\/figure>\n<hr \/>\n<p> <strong><img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-3080181\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2022\/07\/subhead_reads.jpeg\" width=\"838\" \/><\/strong> <\/p>\n<ul>\n<li>Canada\u2019s inflation rate heats up in June<\/li>\n<li>Latest inflation numbers slam door \u2018shut\u2019 on Bank of Canada July rate cut, say economists<\/li>\n<li>CRA keeps messing up despite an increased headcount and bigger budget<\/li>\n<li>\u2018I don\u2019t think we are bouncing back\u2019: Struggling Toronto housing market could remain fragile through 2025, realtors say<\/li>\n<\/ul>\n<p> <img loading=\"lazy\" decoding=\"async\" alt=\"\" class=\"aligncenter size-full wp-image-2059284\" height=\"114\" src=\"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2020\/04\/subhead_personal_finance_2.png\" width=\"838\" \/> <\/p>\n<p> Landlords can often claim tax deductions on a rental unit in the event of losses from the property, amounting to up to 54 per cent depending on the province, but the property must be rented with the purpose of making money. Recently, one landlord was denied tax deductions after rental to their mother at a severely discounted rate, with the judge noting that the property could not have been a business at that rate and was instead a personal venture. <\/p>\n<p>                        Read more here. <\/p>\n<hr \/>\n<h2>Send us your summer job search stories<\/h2>\n<p> Recently, we published a feature on the <\/p>\n<p>                        death of the summer job<\/p>\n<p>                         as student unemployment reaches crisis levels. We want to hear directly from Canadians aged 15-24 about their summer job search. <\/p>\n<p> Send us your story, in 50-100 words, and we\u2019ll publish the best submissions in an upcoming edition of the Financial Post. <\/p>\n<p> You can submit your story by email to <\/p>\n<p>                        fp_economy@postmedia.com<\/p>\n<p>                         under the subject heading \u201cSummer job stories.\u201d Please include your name, your age, the city and province where you reside, and a phone number to reach you. <\/p>\n<hr \/>\n<div class=\"x_elementToProof\"><span>Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at\u00a0<\/span>wealth@postmedia.com<span><\/span><span>\u00a0with your contact info and the gist of your problem and we\u2019ll find some experts to help you out while writing a Family Finance story about it (we\u2019ll keep your name out of it, of course).<\/span><\/div>\n<hr \/>\n<h2>McLister on mortgages<\/h2>\n<p> Want to learn more about mortgages? Mortgage strategist Robert McLister\u2019s <\/p>\n<p>                        Financial Post column <\/p>\n<p>                        can help navigate the complex sector, from the latest trends to financing opportunities you won\u2019t want to miss. Plus check his <\/p>\n<p>                        mortgage rate page<\/p>\n<p>                         for Canada\u2019s lowest national mortgage rates, updated daily. <\/p>\n<hr \/>\n<h2>Financial Post on YouTube<\/h2>\n<p> Visit the Financial Post\u2019s <\/p>\n<p>                        YouTube channel<\/p>\n<p>                         for interviews with Canada\u2019s leading experts in business, economics, housing, the energy sector and more. <\/p>\n<hr \/>\n<p> <em>Today\u2019s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.<\/em> <\/p>\n<p> Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at\u00a0<\/p>\n<p>                        posthaste@postmedia.com<\/p>\n<p>                        . <\/p>\n<hr \/>\n<ul class=\"related_links\">\n<li>Canadians are still saving, but habits are shifting amid market turmoil<\/li>\n<li>Here are 5 Canadian cities where you can make less and still buy a home<\/li>\n<\/ul>\n<p> <em><strong>Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add\u00a0financialpost.com\u00a0to your bookmarks and sign up for our newsletters here<\/em> <\/p>\n<p><\/img><br \/>\n<br \/>\n<br \/>Posthaste: Food manufacturers take drastic measures to fight U.S. tariffs<\/a><br \/>\n<br \/>2025-07-16 12:00:10<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Canadian food manufacturers and distributors are frantically renegotiating longstanding contracts and trying to expand their footprint internationally to combat steep United States tariffs, according to a recent report by Richter&#8230;<\/p>\n","protected":false},"author":2,"featured_media":61969,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-61968","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/61968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=61968"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/61968\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/61969"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=61968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=61968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=61968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}