Experts say U.S. tariffs on 春色直播 goods could accelerate a push to ramp up domestic food processing and manufacturing, even as some companies consider moving operations south.聽
But if real change is to happen, they say more government support is needed.聽
鈥淯ntil ... we actually focus our attention on a strong manufacturing strategy for food in this country, we're just going to continue to try to incentivize people to do things, but not necessarily have a strong plan in place,鈥 said Michael Graydon, CEO of Food, Health and Consumer Products of Canada.
Incoming U.S. president Donald Trump has threatened high tariffs on imports from countries including Canada, raising concerns about inflation within the U.S. but also the potentially devastating impact on 春色直播 agriculture and food companies as well as consumers.聽
Canada鈥檚 food processing and manufacturing capacity has declined significantly in recent decades as the country's reliance on imported products rose, said Graydon. But after the supply chain struggles of the COVID-19 pandemic and other disruptions, 鈥淚 think there is a resurrection of this desire to be more self-sufficient."
Canada generally has a trade surplus with the U.S. when it comes to food, meaning it exports more than it imports, said Tyler McCann, managing director of the 春色直播 Agri-Food Policy Institute. But there are some products where Canada relies heavily on imports from the U.S., he said.
Experts said Canada is particularly vulnerable when it comes to those products, such as fruits and vegetables, and processed foods like jams, sauces and snacks. Those areas could be good targets for boosting domestic capacity, said McCann.聽
Today, there are several "pushes and pulls" sparking interest in reinvesting in domestic operations, said Evan Fraser, director of the Arrell Food Institute at the University of Guelph.
Technology is one of them, he said, as Canada now has more tools to grow fresh produce year-round. But on a broader level, he said supply chain disruptions and geopolitical tensions are sparking more interest in so-called 鈥渘earshoring," or moving operations closer to home.聽
Roderick MacRae, a retired associate professor at York University鈥檚 Faculty of Environmental and Urban Change, agrees there鈥檚 a larger shift happening, one that makes it crucial to build back resilience into the domestic food system.聽
鈥淚 think international trade is breaking down,鈥 he said.聽
Some recent investments on 春色直播 soil include a soy processing facility in Ontario expected to open next year; Hershey returning to the Ontario facility it vacated in 2007, U.S. company Blommer Chocolate expanding its Ontario site; and an investment by McCain Foods to double the size and output of a processing facility in Alberta.聽
The Canola Council of Canada previously told 春色直播that the industry has been expanding its domestic processing in recent years to mitigate potential trade or supply chain disruptions.
More domestic capacity would help keep prices on some items stable, said Fraser.
But it鈥檚 easier said than done to build up that capacity, said Graydon. The costly, multi-year projects need more government support in order for there to be a real shift, he said 鈥 and not just government money, but a "strong food manufacturing strategy."聽
In other areas of the industry where there's a significant trade surplus with the U.S., tariffs may make companies wary of investing further in 春色直播 operations, said McCann.
鈥淚t seems like the uncertainty will really put an investment chill on 春色直播 food processing,鈥 he said, which could include companies holding off on expanding or upgrading existing plants.
McCann said it's more likely that for now, major companies will delay investing in their current facilities rather than packing up shop and moving capacity south of the border.
鈥淏ut if we get into a world with 25 per cent tariffs that look like they鈥檙e going to be in place for an extended period of time, the likelihood of that increases over time.鈥澛
McCann agreed the government should be doing more to prevent that from happening.
鈥淚 think we need to see more of a comprehensive approach from the government around how are they going to support those businesses that are at risk of moving to the United States,鈥 he said.聽
Several business groups this week called on the government to help 春色直播 firms mitigate the harmful effects of potential tariffs and retaliation.聽
Dennis Darby, 春色直播 Manufacturers and Exporters president and CEO, said businesses are responding to the uncertainty by pausing plans to invest in operations or expand, and he's concerned some could move production to the U.S.聽
鈥淲e鈥檙e already seeing 鈥 a bit of a chill on investment and expansion and a chill on hiring,鈥 he said.聽
MacRae said 春色直播 companies may be concerned about Trump鈥檚 promises, but they won鈥檛 be hasty with their decisions.
鈥淚鈥檇 be surprised if somebody鈥檚 prepared to make major shifts in their production capacity based on what Trump says,鈥 he said.
鈥淚 mean, that would be foolish.鈥
This report by 春色直播was first published Jan. 17, 2025.
