Canada Prime Minister Mark Carney has announced that its government will remove several retaliatory import tariffs on food products from the US, Reuters reported.
Restaurants Canada has welcomed the government’s decision and pointed out that the removal of these tariffs will alleviate financial pressures on numerous businesses facing affordability issues.
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The organisation estimates that the tariffs had been imposing an additional burden of approximately C$100m ($72.3m) monthly on the foodservice sector, with a significant portion of establishments operating at minimal profit or incurring losses.
Many of the food items affected by the tariffs were not readily available from domestic suppliers or other international markets.
Restaurants Canada added that it has been a prominent advocate for the removal of these tariffs, collaborating with various food industry associations to communicate the urgency of the situation to government officials and political parties.
Restaurants Canada Government Relations and Public Affairs executive vice-president Richard Alexander said: “The removal of retaliatory tariffs by the Canadian government today will help Canadians with the affordability crisis and will protect the 1.2 million jobs in the foodservice industry.
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By GlobalData“We support the federal government in taking a more targeted approach in its negotiations with the US.”
The trade association has reiterated its commitment to fostering improved relations between Canada and the US, as well as advocating for the reduction of interprovincial trade barriers to support Canadian businesses and consumers.
Carney also noted that the US has recently indicated it will not impose tariffs on Canadian products that comply with the US-Mexico-Canada Agreement (USMCA), which he regarded as a positive sign, according to the news agency.
However, the Prime Minister confirmed that existing Canadian tariffs on US automobiles, steel, and aluminium will remain in effect for the time being.
