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The Hidden Cost of Tariffs: How Trade War Threatens Canadian Food Security

Mazon Canada is the Jewish Response to Hunger, which means we typically don’t make a habit of commenting on bilateral trade disputes.


But when trade war threatens the food security of our fellow Canadians: we stand up, speak up, and take action.



Background


On March 3rd, the Trump administration announced a 25% tariff on a host of Canadian products. These tariffs went into effect on March 4th. In response, the Trudeau government has promised to unleash $155 billion dollars of retaliatory tariffs on American imports, including dozens of food products that will soon cost 25% more to purchase in Canada. The full list of American products subject to Canadian tariffs can be found HERE.


In justifying the decision to impose tariffs on Canada, the Trump administration has provided two justifications: trade imbalances, and illegal fentanyl crossing into the US across Canada's border. Both claims have been challenged on their factual basis, with many experts noting that Canadian fentanyl accounts for just 0.2% of total seizures.


Pre-Trade War: Canadian Families Are Already Stretched Thin


This tariff standoff is occurring in a moment when so many Canadian families are already at a tipping point, on the brink of food insecurity or worse. In this precarious environment, the widespread job losses and price increases resulting from a prolonged trade war will have devastating consequences.


In recent years, the rising cost of living has squeezed Canadian families to a breaking point. A 2025 RBC study found that half of Canadians are now spending “all their income” on essential bills and expenses, and a staggering 47% have recently dipped into their emergency fund or retirement savings to make ends meet. As Canadian families struggle to balance their budgets, credit card bills are piling up. According to the Financial Post, household debt has reached all-time highs.


Food Security and Tariffs: Short, Medium, and Long Term

 

In the short term, job loss is the biggest tariff-related threat to Canadian food security. Industries involved in exports to the US employ an estimated 2.4 million Canadians, representing 12% of Canada’s total workforce. These jobs will be imperilled by a prolonged trade war, and workers – particularly those in manufacturing and resource extraction fields where layoffs are likely to hit hardest – will struggle to put food on the table.


In the medium term, continued reliance on American food producers will likely drive up grocery prices. Canada relies on the U.S. for fresh produce, particularly during the winter months. With dozens of American food products now subject to a 25% import tariff, healthy food may soon become a luxury few can afford. While the impact of these tariffs won’t be felt immediately, the Bank of Canada projects that, if they remain in place, the best-case scenario is “a one-time, permanent increase in price levels.” As for the worst-case scenario: some economists have suggested a tariff this large could plunge Canada’s economy into a full scale recession.


In the long term, beyond the immediate turbulence of job loss and price fluctuations, sustained tariffs pose deeper long-term risks to Canada’s agricultural sector and food sovereignty. “Food sovereignty” means a nation or community’s control over its food production and supply chains. For example, if widespread farm closures occur due to the strangling effects of American tariffs, it would take years or even decades to rebuild that lost production capacity. In the meantime, Canada’s reliance on imported food would only grow, and our food supply would become increasingly vulnerable to external disruption.


How Is Mazon Helping?

 

Direct Relief to Frontline Food Providers


As we've done during previous national food-related crises - notably the COVID-19 pandemic and the 2022-23 inflationary spiral - Mazon is continuing to provide emergency grants to grassroots food programs struggling to meet rising demand due to the economic strain of this crisis.

 

You can donate to support these efforts by clicking the button below:


 

Advocating for Government Action

 

As the situation develops, Mazon is preparing a strategy to push for policies that address food insecurity caused by the trade war.

 

Potential approaches include advocating for:

 

  • Surging resources to regions where job losses are likely to be concentrated (manufacturing and resource extraction hubs) to provide immediate support for housing and food security needs and an expedited EI approvals process for effected workers.

  • Exploring a temporary CERB-like universal program for displaced workers, modeled after COVID-19 emergency relief programs.

  • Increasing federal and territorial funding for food banks to support the predictable influx of new food bank users.

 

The coming months will be critical in determining the long-term impact of this trade war on Canadian food security. While Mazon will continue to provide immediate support to frontline food programs, we cannot solve this crisis alone. We need a coordinated response from all levels of government to protect vulnerable Canadians.


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