Empire Company Ltd., the owner of a number of Canadian food retailers, said on March 13 that American products as a percentage of total sales have been falling substantially.
Company executives pointed to retaliatory tariffs, shifting consumer preferences, and efforts to diversify supply chains as key reasons behind the trend.
“Approximately 12 percent of our products in dollars come from the U.S. ... however, this 12 percent number has been decreasing over the last year and will continue to as we shift our supply to meet our customers’ growing demand for Canadian and non-American products,” Medline added during the call.
Company officials explained that Canadian grocery shoppers are increasingly choosing domestic goods over American imports. The company stated that it has moved quickly to elevate its local strategy, promoting Canadian-made products and working with suppliers to ensure a steady supply of alternatives to U.S. goods.
Retaliatory tariffs have been a major factor in reducing American imports. Canada imposed new tariffs on U.S. goods in response to the Trump administration’s steel and aluminum levies.
The measures that came into effect this week apply to nearly CA$30 billion (about $20.7 billion) in American products, including food items, household goods, and industrial materials.
The weakened Canadian dollar has also played a role. Many suppliers that purchase American goods transact in U.S. dollars, making imports more expensive as the exchange rate fluctuates.
This is an inherent risk Empire faces when doing business with companies outside of Canada, Medline added.
Another key challenge is produce, where Canada’s reliance on imports remains high, particularly during the winter months.
While the company has made strides in securing non-U.S. sources, it acknowledged that certain fresh food categories may still see increased costs or reduced variety if tariffs make American produce noncompetitive.
Empire also highlighted that some suppliers are taking steps to mitigate the impact of tariffs.
Citing Lindt as an example, Medline said the company recently announced that by the summer of 2025, 100 percent of its Canadian chocolate supply will come from Europe instead of the United States.
Overall, Empire is confident in its ability to adapt. “Every week, we are seeing a decline—a rapid decline of U.S. product sales,” Pierre St-Laurent, chief operating officer of Empire, said, adding that as summer approaches, the shift away from U.S. goods will likely accelerate.
Industry experts have warned that continued trade tensions between Canada and the United States could have long-term effects on grocery pricing and availability.
