Latest news with #groceryprices
Daily Mail
2 hours ago
- Business
- Daily Mail
Loblaw warns Canadians of price hikes
Canadians should brace for more expensive groceries. Loblaw Companies Limited, a major Canadian retailer, warns that prices on everyday essentials will continue to climb. This is largely due to the impact of U.S. President Donald Trump's tariffs, which are increasing costs for goods imported from the United States. Loblaw Companies Limited, parent company of major Canadian grocery chains like Loblaws, No Frills, and Real Canadian Superstore, released its May food inflation report on Tuesday, May 27. The report indicates that thousands of everyday items are set to rise in price. While this isn't welcome news for Canadians struggling with grocery bills, the retailer noted that the increases could have been even more severe. Loblaw has indicated that recent government actions, specifically a six-month reprieve on tariffs for certain U.S. food manufacturing and packaging imports, are helping to prevent a drastic surge in grocery prices. The stabilization of the Canadian dollar is also contributing to mitigating the risk of a sharp or prolonged spike in food inflation. Loblaw has confirmed that the Canadian government's recent decision to exempt 'indirect tariffs' on certain US imports will help stabilize food prices. This applies to products like chocolate chips or peanuts, which are used as ingredients in goods manufactured in Canada. Previously, these indirect tariffs were a significant concern for food costs due to the widespread use of imported components in Canadian-made products. With this change, only final products imported from the US will now be subject to tariffs, offering relief across a substantial number of items on supermarket shelves. Despite some relief, Loblaw states that tariffs continue to apply to thousands of different items, including a wide range of food products imported from the U.S. This impacts categories such as produce, rice, pasta, dairy, and coffee, alongside health and wellness products like soap, shampoo, and cosmetics. Loblaw estimates that consumers can expect tariff-related price increases on approximately 6,000 items in a conventional grocery store, with roughly half of these being food products.
The Independent
3 days ago
- Business
- The Independent
Spike in steel tariffs could imperil Trump promise of lower grocery prices
President Donald Trump's doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The announcement Friday of a staggering 50% levy on those imports stoked fear that big-ticket purchases from cars to washing machines to houses could see major price increases. But those metals are so ubiquitous in packaging, they're likely to pack a punch across consumer products from soup to nuts. 'Rising grocery prices would be part of the ripple effects,' says Usha Haley, an expert on trade and professor at Wichita State University, who added that the tariffs could raise costs across industries and further strain ties with allies 'without aiding a long-term U.S. manufacturing revival.' Trump's return to the White House has come with an unrivaled barrage of tariffs, with levies threatened, added and, often, taken away, in such a whiplash-inducing frenzy it's hard to keep up. He insisted the latest tariff hike was necessary to 'even further secure the steel industry in the U.S.' That promise, though, could be at odds with his pledge to reduce food costs. Rising grocery prices, Trump has said, were among the biggest reasons voters swung his way. A look around a supermarket makes clear how many products could be impacted by new taxes on steel and aluminum, from beer and soda to dog food to can after can of beans, fruit, tomato paste and more. 'It plays into the hands of China and other foreign canned food producers, which are more than happy to undercut American farmers and food producers,' insists Can Manufacturers Institute president Robert Budway. 'Doubling the steel tariff will further increase the cost of canned goods at the grocery store.' Budway says production by domestic tin mill steel producers, whose products are used in cans, have dramatically decreased in recent years, making manufacturers reliant on imported materials. When those prices go up, he says, 'the cost is levied upon millions of American families.' Food companies were already warily assessing the administration's tariffs before the latest hike, which Trump said would go into effect on Wednesday. The Campbell Co., whose soup cans are a staple for millions of Americans, has said it was working to mitigate the impact of tariffs but may be forced to raise prices. ConAgra Brands, which puts everything from cans of Reddi-Whip to cooking sprays like Pam on supermarket shelves, likewise has pointed to the impact steel and aluminum tariffs have. 'We can't get all of our materials from the US because there's no supply,' ConAgra CFO David Marberger said at a recent Goldman Sachs conference on global staples. Beyond the obvious products — canned foods like tuna, chicken broth and cranberry sauce — economists warn of a spillover effect that tariffs can have on a gamut of items. If the cost to build a store or buy a truck to haul food rise, the prices of products may follow. Most Americans will never buy a tractor, but Babak Hafezi, who runs a global consulting firm and teaches international business at American University, says a price spike in such a big-ticket item vital to food production will spill down to all sorts of other items. 'If a John Deere tractor costs 25% more, consumers pay the price for that,' Hafezi says. 'This trickles down the economy and impacts every aspect of the economy. Some of the trickling is immediate and others are slower to manifest themselves. But yes, prices will increase and choices will decrease.' Trump appeared before a crowd of cheering steelworkers to unveil the new tariffs at a rally outside Pittsburgh. In a statement, David McCall, president of the United Steelworkers International union, called tariffs 'a valuable tool in balancing the scales' but 'wider reforms of our global trading system" are needed. It may be harder to gauge the weight of tariffs on, say, a can of chickpeas versus that of a new car, but consumers are likely to see myriad indirect costs from the levies, says Andreas Waldkirch, an economics professor at Colby College who teaches a class on international trade. 'Anybody who's directly connected to the steel industry, they're going to benefit. It's just coming at a very high cost,' Waldkirch says. 'You may get a few more steel jobs. But all these indirect costs mean you then destroy jobs elsewhere. If you were to add that all in, you come up with a pretty large negative loss.' ___ Matt Sedensky can be reached at msedensky@ and
Yahoo
3 days ago
- Business
- Yahoo
Spike in steel tariffs could imperil Trump promise of lower grocery prices
NEW YORK (AP) — President Donald Trump's doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The announcement Friday of a staggering 50% levy on those imports stoked fear that big-ticket purchases from cars to washing machines to houses could see major price increases. But those metals are so ubiquitous in packaging, they're likely to pack a punch across consumer products from soup to nuts. 'Rising grocery prices would be part of the ripple effects,' says Usha Haley, an expert on trade and professor at Wichita State University, who added that the tariffs could raise costs across industries and further strain ties with allies 'without aiding a long-term U.S. manufacturing revival.' Trump's return to the White House has come with an unrivaled barrage of tariffs, with levies threatened, added and, often, taken away, in such a whiplash-inducing frenzy it's hard to keep up. He insisted the latest tariff hike was necessary to 'even further secure the steel industry in the U.S.' That promise, though, could be at odds with his pledge to reduce food costs. Rising grocery prices, Trump has said, were among the biggest reasons voters swung his way. A look around a supermarket makes clear how many products could be impacted by new taxes on steel and aluminum, from beer and soda to dog food to can after can of beans, fruit, tomato paste and more. 'It plays into the hands of China and other foreign canned food producers, which are more than happy to undercut American farmers and food producers,' insists Can Manufacturers Institute president Robert Budway. 'Doubling the steel tariff will further increase the cost of canned goods at the grocery store.' Budway says production by domestic tin mill steel producers, whose products are used in cans, have dramatically decreased in recent years, making manufacturers reliant on imported materials. When those prices go up, he says, 'the cost is levied upon millions of American families.' Food companies were already warily assessing the administration's tariffs before the latest hike, which Trump said would go into effect on Wednesday. The Campbell Co., whose soup cans are a staple for millions of Americans, has said it was working to mitigate the impact of tariffs but may be forced to raise prices. ConAgra Brands, which puts everything from cans of Reddi-Whip to cooking sprays like Pam on supermarket shelves, likewise has pointed to the impact steel and aluminum tariffs have. 'We can't get all of our materials from the US because there's no supply,' ConAgra CFO David Marberger said at a recent Goldman Sachs conference on global staples. Beyond the obvious products — canned foods like tuna, chicken broth and cranberry sauce — economists warn of a spillover effect that tariffs can have on a gamut of items. If the cost to build a store or buy a truck to haul food rise, the prices of products may follow. Most Americans will never buy a tractor, but Babak Hafezi, who runs a global consulting firm and teaches international business at American University, says a price spike in such a big-ticket item vital to food production will spill down to all sorts of other items. 'If a John Deere tractor costs 25% more, consumers pay the price for that,' Hafezi says. 'This trickles down the economy and impacts every aspect of the economy. Some of the trickling is immediate and others are slower to manifest themselves. But yes, prices will increase and choices will decrease.' Trump appeared before a crowd of cheering steelworkers to unveil the new tariffs at a rally outside Pittsburgh. In a statement, David McCall, president of the United Steelworkers International union, called tariffs 'a valuable tool in balancing the scales' but 'wider reforms of our global trading system" are needed. It may be harder to gauge the weight of tariffs on, say, a can of chickpeas versus that of a new car, but consumers are likely to see myriad indirect costs from the levies, says Andreas Waldkirch, an economics professor at Colby College who teaches a class on international trade. 'Anybody who's directly connected to the steel industry, they're going to benefit. It's just coming at a very high cost,' Waldkirch says. 'You may get a few more steel jobs. But all these indirect costs mean you then destroy jobs elsewhere. If you were to add that all in, you come up with a pretty large negative loss.' ___ Matt Sedensky can be reached at msedensky@ and Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
3 days ago
- Business
- Associated Press
Spike in steel tariffs could imperil Trump promise of lower grocery prices
NEW YORK (AP) — President Donald Trump's doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The announcement Friday of a staggering 50% levy on those imports stoked fear that big-ticket purchases from cars to washing machines to houses could see major price increases. But those metals are so ubiquitous in packaging, they're likely to pack a punch across consumer products from soup to nuts. 'Rising grocery prices would be part of the ripple effects,' says Usha Haley, an expert on trade and professor at Wichita State University, who added that the tariffs could raise costs across industries and further strain ties with allies 'without aiding a long-term U.S. manufacturing revival.' Trump's return to the White House has come with an unrivaled barrage of tariffs, with levies threatened, added and, often, taken away, in such a whiplash-inducing frenzy it's hard to keep up. He insisted the latest tariff hike was necessary to 'even further secure the steel industry in the U.S.' That promise, though, could be at odds with his pledge to reduce food costs. Rising grocery prices, Trump has said, were among the biggest reasons voters swung his way. A look around a supermarket makes clear how many products could be impacted by new taxes on steel and aluminum, from beer and soda to dog food to can after can of beans, fruit, tomato paste and more. 'It plays into the hands of China and other foreign canned food producers, which are more than happy to undercut American farmers and food producers,' insists Can Manufacturers Institute president Robert Budway. 'Doubling the steel tariff will further increase the cost of canned goods at the grocery store.' Budway says production by domestic tin mill steel producers, whose products are used in cans, have dramatically decreased in recent years, making manufacturers reliant on imported materials. When those prices go up, he says, 'the cost is levied upon millions of American families.' Food companies were already warily assessing the administration's tariffs before the latest hike, which Trump said would go into effect on Wednesday. The Campbell Co., whose soup cans are a staple for millions of Americans, has said it was working to mitigate the impact of tariffs but may be forced to raise prices. ConAgra Brands, which puts everything from cans of Reddi-Whip to cooking sprays like Pam on supermarket shelves, likewise has pointed to the impact steel and aluminum tariffs have. 'We can't get all of our materials from the US because there's no supply,' ConAgra CFO David Marberger said at a recent Goldman Sachs conference on global staples. Beyond the obvious products — canned foods like tuna, chicken broth and cranberry sauce — economists warn of a spillover effect that tariffs can have on a gamut of items. If the cost to build a store or buy a truck to haul food rise, the prices of products may follow. Most Americans will never buy a tractor, but Babak Hafezi, who runs a global consulting firm and teaches international business at American University, says a price spike in such a big-ticket item vital to food production will spill down to all sorts of other items. 'If a John Deere tractor costs 25% more, consumers pay the price for that,' Hafezi says. 'This trickles down the economy and impacts every aspect of the economy. Some of the trickling is immediate and others are slower to manifest themselves. But yes, prices will increase and choices will decrease.' Trump appeared before a crowd of cheering steelworkers to unveil the new tariffs at a rally outside Pittsburgh. In a statement, David McCall, president of the United Steelworkers International union, called tariffs 'a valuable tool in balancing the scales' but 'wider reforms of our global trading system' are needed. It may be harder to gauge the weight of tariffs on, say, a can of chickpeas versus that of a new car, but consumers are likely to see myriad indirect costs from the levies, says Andreas Waldkirch, an economics professor at Colby College who teaches a class on international trade. 'Anybody who's directly connected to the steel industry, they're going to benefit. It's just coming at a very high cost,' Waldkirch says. 'You may get a few more steel jobs. But all these indirect costs mean you then destroy jobs elsewhere. If you were to add that all in, you come up with a pretty large negative loss.' ___ Matt Sedensky can be reached at [email protected] and
Yahoo
3 days ago
- Business
- Yahoo
Prices on thousands of grocery items to rise despite tariff break, says Loblaw
Relaxed tariff rules are easing some concerns about prices, but consumers should still expect to pay more for food, says Loblaw Cos. Ltd. Last month, the Canadian government announced a six-month tariff reprieve for items used in food and beverage processing, manufacturing and packaging. Loblaw said the policy and a stabilized loonie are helping to reduce the risk of a sharp spike in food prices, but thousands of items are still expected to cost more. 'Tariffs remain on food products imported from the U.S. like produce, rice, pasta, dairy and coffee, as well as health and wellness products including soap, shampoo and cosmetics,' the company said in a recent Food Inflation Report. 'In a conventional grocery store, there can be upwards of 80,000 items, and consumers can expect tariff-related increases on approximately 6,000, about half of which are food.' The grocery chain earlier this month also warned that food prices could surge as pre-tariff inventory runs out, and it has added a 'T' symbol to products affected by tariffs. Loblaw said it and other grocers are looking at sourcing tariff-vulnerable items from other countries to mitigate price impacts. Grocery price increases outpace overall inflation Egg prices fall to $5 a dozen in the U.S. Food inflation reached 3.8 per cent in April, surpassing the overall consumer price index of 1.7 per cent, according to Statistics Canada data. • Email: bcousins@
