As tariffs continue to reshape cross-border trade, Loblaw Companies Limited is accelerating its pivot toward Canadian-made goods to shield customers from rising grocery prices and supply disruptions.
In a recent LinkedIn post, CEO and president Per Bank revealed that sales of U.S. products impacted by tariffs have dropped significantly—by 15 to 20 per cent on average and up to nearly 50 per cent in categories where strong Canadian alternatives exist.
To help customers identify affected items, Loblaw earlier this year began labeling tariff-impacted products across its banners—including Zehrs, Maxi, Real Canadian Superstore, and Fortinos—with a “T” symbol. Originally intended for about 6,000 items, Bank now expects the label to apply to roughly 7,500 products, as the full impact of Canadian counter-tariffs becomes evident.
These tariffs are a response to levies imposed by U.S. President Donald Trump on Canadian goods, and they affect a wide range of shelf-stable American food products. While importers pay the tariffs, the costs are typically passed on to consumers, contributing to inflation at the grocery store.
In response, Loblaw has been aggressively expanding its domestic supplier network. The company added 70 new Canadian suppliers in the second quarter of 2025 alone, bringing the total for the year to 100.
Bank acknowledged that while grocery prices are still rising, the pace has slowed. According to the July 15 Consumer Price Index from Statistics Canada, food prices rose 2.8 per cent year over year in June, down from 3.3 per cent in May. A notable decrease in fresh vegetable prices helped ease the overall increase.
He also noted that tariffs are a key topic in most of Loblaw’s supplier meetings, with about 30 per cent of this year’s inflationary cost increases linked directly to tariffs.
Bank commended Prime Minister Mark Carney for his ongoing efforts to address trade tensions with the U.S. but said Loblaw will continue to prioritize value and Canadian alternatives in the meantime. “We will continue to focus on value, make it easier for our customers to shop Canadian brands and products, and to advocate on their behalf,” he stated.
Meanwhile, reports of product shortages have surfaced, including signs at Sobeys stores indicating that Bick’s pickles are currently unavailable due to tariff-related impacts. Sylvain Charlebois of Dalhousie University’s Agri-Food Analytics Lab posted a photo on X showing one such sign, though it remains unclear whether the issue stems from supply chain access or cost increases. CTV News also reported similar signs in Winnipeg. Sobeys has not responded to requests for comment.
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