Edition 63

March 27, 2025

Food and Beverage Canada’s Update on Canada-U.S. Relations and Industry Impacts

Working Group Updates

Food and Beverage Canada’s (FBC-ABC) Working Group on Canada-U.S. Relations has submitted a response to the Department of Finance’s consultations regarding proposed retaliatory tariffs in response to U.S. tariffs on Canadian goods. The submission includes HS codes for items that FBC-ABC members have requested be excluded from Canada’s counter-tariff measures.

In addition, FBC-ABC and the six provincial and regional food and beverage manufacturing associations have sent a joint letter (available here) to the Deputy Ministers of Finance and Agriculture and Agri-Food providing further context to the submission, emphasizing:

·    Tariffs on essential inputs will harm Canadian manufacturers and consumers.

·    Disruptions to packaging and processing inputs could impact food security.

·    Targeting finished U.S. food and beverage products is a more effective strategy.

FBC-ABC urges associations and individual companies to submit their own response to the Department of Finance’s consultations before the April 2 deadline, requesting items they would like excluded from future retaliatory tariff lists. 

Latest Developments on Canada-U.S. Relations and Tariff Threats

·    New 25% U.S. Tariff on Auto Imports: On March 26, President Trump signed an Executive Order imposing a 25% tariff on automobiles and auto parts imported into the U.S., effective April 3. Vehicles imported under CUSMA will be taxed based on non-U.S. content, while auto parts will be subject to tariffs at a later date.

·    The Prime Minister convened the Cabinet Committee on Canada-U.S. Relations earlier today; we await further details on Canada’s response.

·    Reciprocal Tariffs Expected April 2: It remains unclear what we can expect in terms of reciprocal tariffs on April 2, with media reports suggesting the U.S. will impose reciprocal tariffs based on set amounts per country, with exemptions possible for countries that negotiate bilateral deals.

·    Packaging Concerns Raised: FBC-ABC has heard concerns from members about HS codes related to cans and can lids included in the March 13 retaliatory tariff list. Advocacy is ongoing to secure expedited remissions.

·    Remissions Process Update: It is FBC-ABC’s understanding that the Department of Finance is unlikely to approve requests for remissions until after the federal election. In the interim, the Department intends to consult with domestic producers and associations as part of their due diligence.

·    In the News – Radio Canada Coverage: Sylvie Cloutier, President and CEO of CTAQ and Chris Conway, CEO of Food and Beverage Ontario were interviewed in a recent Radio-Canada article on the impact of U.S. tariffs on Canada’s agri-food system. You can read the article here.

FBC-ABC Member Updates

Federal Election Called

Prime Minister Mark Carney has triggered a federal election, with voters set to head to the polls on April 28. The leaders of the main federal political parties will participate in leaders debates on April 16 (French) and April 17 (English). FBC-ABC will be advocating for all parties to include commitments in their platforms to support the competitiveness of Canada’s food and beverage manufacturing industry. To keep members informed, FBC-ABC will be including election updates in our weekly newsletter, as well as holding a weekly call open to members on Wednesday’s at 1:00pm EST. You can join by clicking here, or by reaching out to FBC-ABC for a calendar invite.

Kristina Farrell Named to Hill Times Top 100 Lobbyists List

Congratulations to FBC-ABC’s CEO, Kristina Farrell, for being named on The Hill Times Top 100 Lobbyists List for 2025. This list showcases prominent lobbyists at the federal level based on their reputation and perceived effectiveness as judged by their peers.

Register Now – AFPA Annual Industry Conference (April 11)

Registration is open for the Alberta Food Processors Association (AFPA) annual industry conference on Friday, April 11 in Edmonton. FBC-ABC’s CEO, Kristina Farrell, will join a panel to discuss trade, policy, and economic challenges. She looks forward to connecting with member companies while in Edmonton.

For more details or to contribute insights, please reach out to Kristina Farrell, FBC-ABC’s CEO.