1) (Updated) Loblaw warns of surge in tariff-hit food products as pre-tariff inventory runs out

Courtesy Barrie360.com and Canadian Press

By Ian Bickis, May 14, 2025

A sign advising that products from the U.S. affected by a tariff will be marked with a symbol at the shelf, with a QR code linking to a Government of Canada website, is seen in a grocery store in Ottawa, on Wednesday, April 2, 2025. THE CANADIAN PRESS/Justin Tang

The number of tariff-hit products at the grocery store could soon spike as pre-tariff inventory runs out, said Loblaw Cos. Ltd. chief executive Per Bank, which means prices for some items will go up too.

Loblaw has been aggressive in marking which products are affected by tariffs, a tally that so far it has limited to a little over 1,000 items. But that total will rise to more than 3,000 within the next week or two, and could peak at over 6,000 within the next two months, said Bank in a LinkedIn post on Wednesday. 

“While the tariff situation might be improving between the U.S. and other countries, that’s not yet the case here in Canada. In fact, we’ll be facing a large wave of tariff-related increases in the weeks ahead,” he said.

Tariff-affected items will still account for a small share of the roughly 80,000 items the company stocks, but customers will notice changes in categories including natural foods, pantry staples and health and beauty products, he said. 

“It’s been good to see Prime Minister Carney and other leaders engaging in dialogue with U.S. officials, as we’re all hoping for a rapid de-escalation of this situation.”

Bank also said he was pleased to see the federal government has changed its counter-tariff policies to limit the charges to finished food products coming in from the U.S. 

In mid-April, the government announced several adjustments to the $60 billion in counter-tariffs it announced in March to ease the burden on Canadian companies and consumers. 

A key measure for grocers was a six-month suspension of counter-tariffs on a broad range of U.S. goods used in Canadian manufacturing, processing and food and beverage packaging. That means, for example, a Canadian company could import something like milk if it’s used to make another product without the additional counter-tariffs, but milk for retail sale wouldn’t be exempt. 

From the start, the counter-tariffs excluded U.S. produce like lettuce, which the Canadian market is especially reliant on. 

Canada’s counter-tariffs have generally targeted items that have alternatives produced in Canada, so areas like dairy, poultry and grains, said Mike von Massow, a University of Guelph professor and food economist.

“They put them on things that were highly substitutable, so that if you were willing to make small changes, you weren’t going to get impacted as much,” he said.

“Now, if you are interested in a specifically aged cheddar from Wisconsin, then that’s going to go up in price.”

While many items aren’t directly tariffed by Canada, there are indirect price pressures from other areas like U.S. metal tariffs, and the general uncertainty brought on by the trade war, he said.

“The uncertainties with the U.S., it has the potential to increase prices even in the absence of tariffs.”

Loblaw’s head-on approach to tackling tariff increases could help reduce consumer frustration in the grocery aisles where Canadians can most visibly see the impact of tariffs, said Jenna Jacobson, associate professor and Eaton Chair in Retailing at Toronto Metropolitan University.

“It’s diverting the negative blame from the retailer to these external policy or political issues,” said Jacobson.

She said Loblaw is notable for coming out so specifically on tariff impacts, but that all grocers have been highlighting Canadian-made products.

But while the transparency could work well for the company, there are trust concerns given how quickly the tariff situation is changing.

“It’s basically an effort to simplify something that is very complex,” said Jacobson. “That simplification has to be done accurately, otherwise, it serves to distort consumer perceptions.”

While Canada has added numerous exemptions to its counter-tariff measures, they remain on high-profile grocery items like orange juice and alcohol as well as a host of other products ranging from uncooked pasta to guinea fowl in a glass jar. 

Companies in this story: (TSX:L)

2) US and China reach deal to roll back most tariffs for 90 days

Courtesy Barrie360.com and The Associated Press

By Jamey Keaten, David Mchugh, Elaine Kurtenbach and Ken Moritsugu

US Secretary of the Treasury Scott Bessent, left, and US Trade Representative Jamieson Greer meet the media on the second day of a bilateral meeting between the United States and China, in Geneva, Switzerland, Sunday, May 11, 2025. (Martial Trezzini/Keystone via AP)

U.S. and Chinese officials said Monday they had reached a deal to roll back most of their recent tariffs and call a 90-day truce in their trade war for more talks on resolving their trade disputes. 

Stock markets rose sharply as the globe’s two major economic powers took a step back from a clash that has unsettled the global economy. 

U.S. Trade Representative Jamieson Greer said the U.S. agreed to drop its 145% tariff rate on Chinese goods by 115 percentage points to 30%, while China agreed to lower its rate on U.S. goods by the same amount to 10%.

Greer and Treasury Secretary Scott Bessent announced the tariff reductions at a news conference in Geneva.

The two officials struck a positive tone as they said the two sides had set up consultations to continue discussing their trade issues. Bessent said at the news briefing after two days of talks that the high tariff levels would have amounted to a complete blockage of each sides goods, an outcome neither side wants. 

“The consensus from both delegations this weekend is neither side wants a decoupling,” Bessent said. “And what had occurred with these very high tariff … was an embargo, the equivalent of an embargo. And neither side wants that. We do want trade.”

“We want more balanced trade. And I think that both sides are committed to achieving that.”

The delegations, escorted around town and guarded by scores of Swiss police, met for at least a dozen hours on both days of the weekend at sun-baked 17th-century villa that serves as the official residence of the Swiss ambassador to the United Nations in Geneva.

At times, the delegation leaders broke away from their staffs and settled into sofas on the villa’s patios overlooking Lake Geneva, helping deepen personal ties in the effort to reach a much-sought deal. 

China’s Commerce Ministry said the two sides agreed to cancel 91% in tariffs on each other’s goods and suspend another 24% in tariffs for 90 days, bringing the total reduction to 115 percentage points.

The ministry called the agreement an important step for the resolution of the two countries’ differences and said it lays the foundation for further cooperation.

“This initiative aligns with the expectations of producers and consumers in both countries and serves the interests of both nations as well as the common interests of the world,” a ministry statement said.

China hopes the U.S will stop “the erroneous practice of unilateral tariff hikes” and work with China to safeguard the development of their economic and trade relations, injecting more certainty and stability into the global economy, the ministry said.

The joint statement issued by the two countries said China also agreed to suspend or remove other measures it has taken since April 2 in response to the U.S. tariffs. 

China has increased export controls on rare earths including some critical to the defense industry and added more American companies to its export control and unreliable entity lists, restricting their business with and in China.

The full impact on the complicated tariffs and other trade penalties enacted by Washington and Beijing remains unclear. And much depends on whether they will find ways to bridge longstanding differences during the 90-day suspension.

But investors rejoiced as trade envoys from the world’s two biggest economies blinked, finding ways to pull back from potentially massive disruptions to world trade and their own markets.

Futures for the S&P 500 jumped 2.6% and for the Dow Jones Industrial Average was up 2%. Oil prices surged more than $1.60 a barrel and the U.S. dollar gained against the euro and the Japanese yen.

“This is a substantial de-escalation,” said Mark Williams, chief Asia economist at Capital Economics. But he warned “there is no guarantee that the 90-day truce will give way to a lasting ceasefire.” 

Jens Eskelund, president of the European Union Chamber of Commerce in China, welcomed the news but expressed caution. The tariffs only were suspended for 90 days and there is great uncertainty over what lies ahead, he said in a statement. 

“Businesses need predictability to maintain normal operations and make investment decisions. The chamber therefore hopes to see both sides continue to engage in dialogue to resolve differences, and avoid taking measures that will disrupt global trade and result in collateral damage for those caught in the cross-fire,” Eskelund said.

Trump last month raised U.S. tariffs on China to a combined 145% and China retaliated by hitting American imports with a 125% levy. Tariffs that high essentially amount to the two countries boycotting each other’s products, disrupting trade that last year topped $660 billion.

The announcement by the U.S. and China sent shares surging, with U.S. futures jumping more than 2%. Hong Kong’s Hang Seng index surged nearly 3% and benchmarks in Germany and France were both up 0.7%

The Trump administration has imposed tariffs on countries worldwide, but its fight with China has been the most intense. Trump’s import taxes on goods from China include a 20% charge meant to pressure Beijing into doing more to stop the flow of the synthetic opioid fentanyl into the United States.

3) (Updated) Travel to the U.S. takes another hit in April as Canadians vacation elsewhere

Courtesy Barrie360.com and Canadian Press

By Ritika Dubey, May 12, 2025.

Travel to the United States took another hit in April as an “elbows up” attitude persists among Canadians, who eschewed the country amid anger over tariffs and annexation threats from the U.S. president. 

Canadian residents returning by automobile from the U.S. in April fell on a year-over-year basis for the fourth consecutive month, preliminary numbers released by Statistics Canada showed Monday. The 1.2 million trips represented a 35.2 per cent drop from the same month in 2024 and 45.1 per cent lower than April 2019, before the pandemic.

In a backlash against U.S. President Donald Trump’s tariffs and “51st-state” threats over the past few months, Canadians have cancelled trips and appear to be stepping back from making future travel plans south of the border. 

This trend in leisure travel is likely to persist, and even ramp up, over the coming months, says Richard Vanderlubbe, president of the travel agency tripcentral.ca. 

“Outright cancellations? We didn’t have a lot,” said Vanderlubbe of the early months of trade tensions. That’s because people would have lost money on their advanced bookings — mostly on non-refundable reservations and deposits made before the tariff threats began — if they decided against the trip. 

“But when it comes to new bookings and new decisions, whether to travel to the U.S., I think that’s going to get worse than the numbers that we’re observing,” he said.

The decline is likely to come from people deciding among their social networks to boycott the U.S. as they map out their future vacation plans, Vanderlubbe anticipated. 

Canadian residents returning by air from the United States in April totalled 582,700, down 19.9 per cent from a year ago, even as return trips from overseas went up.

The change came as overall Canadian-resident return trips by air edged down 1.7 per cent to 1.8 million as return trips from overseas countries rose 9.9 per cent compared with April 2024.

Overall international arrivals, including both Canadian residents and non-residents, by air and automobile totalled 4.5 million in April, down 15.2 per cent from the same month last year, Statistics Canada said. 

Flight Central is seeing similar drops in bookings to the U.S. among its clients.

Bookings to the U.S. in April declined 53 per cent at the travel agency, said Amra Durakovich, spokeswoman for Flight Central Travel Group Canada. 

But she said she doesn’t think the decline signals a permanent pullback.

“It’s more a recalibration,” Durakovich said. “The fact is that once there’s uncertainty, that definitely impacts travel demand.”

Durakovich said Canadians are looking to Europe, Asia and South America. She said there are a higher number of bookings to Japan, South Korea, Thailand and Colombia. 

Canadian airlines are also watching the travel trends closely. 

In March, Air Canada reduced flights by 10 per cent to Florida, Las Vegas and Arizona — usually go-to hot spots during spring break season. Competitors WestJet, Flair Airlines and Air Transat made similar moves.

Last week, Air Canada also announced a 16 per cent capacity increase into Latin America starting in October.

“What we’re seeing is Canadians — they’re really travelling with more intention,” Durakovich said. “If they’re going to go to the U.S., they’re simply going to go, but those who don’t want to go, they’re just not going.” — With files from Christopher Reynolds in Montreal. 

4) (Update) New Tecumseth mayor remains hopeful Honda’s EV plant will be built, despite delay

Source Canadian Press

By Maan Alhmidi, May 13, 2025.

The mayor of an Ontario municipality set to be the home for Honda’s now-postponed $15-billion electric-vehicle project said Tuesday he is not giving up hope on the plant.

New Tecumseth Mayor Richard Norcross said he is disappointed with Honda’s decision but he will continue to advocate for the project, which was expected to create about a thousand jobs. 

“I’m hoping we can help,” he said in an interview.

“We’re gonna do everything we can to help, and we will lobby where we have to lobby, and we will do what we can do to keep the plant going forward.”

Honda said it is delaying its scale-up in the community of Alliston, which includes a battery plant and retooled vehicle assembly line, for about two years as it monitors market conditions.

It’s the biggest project delay so far in Canada blamed on a weakened outlook for electric-vehicle sales, and it comes as the company expects a drop in profits because of U.S. tariffs.

Norcross said his municipality has been working with Honda, the Ontario government and the federal government to push the new plant project forward. 

“Honda has been a fabulous partner … for over 40 years, and we have a great relationship and they’ve been an excellent corporate supporter,” he said.

“We all have been working collaboratively and collectively together to make sure we push this project as quick as we could, but … we are thrilled though that they are keeping their existing operations and the existing plant running and keeping the employment going.”

Unifor, which does not represent the Honda workers at Alliston but represents workers in the supply chain, said it is deeply concerned about potential job losses in the sector. 

“Trump’s rollback of EV policies and his punishing tariffs on Canadian-made vehicles are killing jobs week after week and threatening the future of our industry,” said Unifor national president Lana Payne. 

“This isn’t about fair trade – it’s economic sabotage. The U.S. policy shifts are designed to bleed Canadian operations and push production south of the border. Workers, families, and entire communities are paying the price.”

Ontario Premier Doug Ford said Honda assured him the company remains committed to the project.

“I’ve talked to Honda, they’ve promised us they’re going to continue on with their expansion,” said Ford at an event in Pickering.

He said he is confident that Prime Minister Mark Carney can reach a trade deal with Trump that will lead to a mutually rewarding relationship when it comes to the auto industry.

NDP Leader Marit Stiles said Ford should be doing more to create EV demand within Ontario such as introducing rebates and installing more chargers.

But she said he should also be doing more to ensure that industries such as the electric-vehicle sector don’t pull up stakes.

“Where is Captain Canada?” Stiles said, referencing Ford’s anti-Trump messaging before and during the provincial election.

“Has he already hung up his cape? Is the fight already over?”

Liberal Leader Bonnie Crombie said Ford may have focused too much on building up an electric-vehicle supply chain in Ontario, to the exclusion of other industries.

“Once you put all your eggs in one basket and then the market slumps, where are your protections for jobs and for growth?” she said.

“This is a large concern now that Honda is pausing this investment. It is a pause for 1,000 jobs that could have been created.” — With files from Allison Jones

5) Joly says Honda still committed to EV investments in Alliston after $15-billion project delayed

Courtesy Barrie360.com and Canadian Press

By Catherine Morrison, May 14, 2025

Industry Minister Mélanie Joly says Honda Canada remains “fully committed” to major electric-vehicle investments in Canada after the company announced Tuesday that it was pausing a multibillion-dollar EV project in Ontario.

Joly said in a statement Wednesday that she spoke with Honda Canada’s president and CEO, Dave Jamieson, who assured her that “no jobs will be lost.”

“He also confirmed that Honda is still fully committed to major EV investments right here in Canada — and we’ll work together to make it happen,” Joly said. 

Honda announced on Tuesday that it has postponed a $15-billion electric-vehicle project, citing market demand, and is shifting some production of its popular CR-V model intended for the U.S. market to its Ohio plant because of tariffs. 

The halted investment marks by far the biggest project delay yet in Canada as the outlook for EV growth softens. 

Joly told reporters earlier Wednesday that her goal is to ensure the government is in “solution mode.”

In a quarterly earnings press conference on Tuesday in Japan, chief executive Toshihiro Mibe said the company will look at where the electric-vehicle market is in two years before deciding whether to keep going with the project.

“What happens after two years and the starting time of the project, we have to observe what is happening and ultimately make the decision,” he said, based on translated remarks.

While he cited EV demand for the delay, he said the company’s move to shift CR-V production to the U.S. is a more immediate result of tariffs. 

“There is room to increase the production capacity in the United States, and we are trying to look into what will happen as a result of that,” said Mibe. “In the midterm, if the tariff measures are to be in place for a long time, then we will have to increase our production capacity in the United States.”

At a gala dinner Wednesday at the Canadian Museum of History in Gatineau, Que., to launch the Business 7 Summit, Joly said her first priority is to make sure Canada supports the sectors that are on the front line of the trade war, including the auto sector and the steel and aluminum sectors. 

She said Canada needs to continue to protect its jobs and ensure it can attract investments as it deals with uncertainty amid the trade war with the U.S.

Joly said she will also be on the “offence” and drive economic growth with a prime minister who she says is obsessed with the economy.

“We are in this global competition to attract investments at a time where the world is more complicated, more dangerous,” Joly said.

Finance Minister François-Philippe Champagne, who was also at the event and spent at least 20 minutes chatting with U.S. Ambassador to Canada Peter Hoekstra, said Prime Minister Mark Carney has challenged the government to be ambitious and have a more resilient economy.

Honda was the second largest auto manufacturer in Canada last year based on the roughly 420,000 vehicles it produced, and the CR-V makes up close to half that total.

Honda Canada spokesman Ken Chiu said the company has no plans to cut overall production or jobs in Canada, and that the company is instead shifting which vehicles go where based on tariffs.

“We’re basically swapping export destinations of a small portion of CRVs between our plants,” he said by email. 

He said the decision to postpone the EV project, which would include a battery plant, a retooled assembly line and two other plants, has no effect on the 4,200 people who currently work at the Honda manufacturing plant in Alliston.

Honda’s decision, affecting plans that were expected to create 1,000 jobs, came as it reported a drop in profits and more on the way because of tariffs. The company said U.S. President Donald Trump’s tariffs are expected to cut US$4.4 billion from its operating profit for this fiscal year, largely because it has so many vehicles coming from Canada and Mexico into the U.S.  — With files from Ian Bickis