What is a customs tariff?

A tariff is a tax imposed on imported goods to protect local industries and regulate international trade. However, this taxation leads to higher prices for imported products, directly affecting Quebec retailers and consumers.

Impact of tariffs on grocery prices

The application of tariffs generally results in higher prices for imported products. In Quebec, this increase will be reflected in the cost of food products, directly affecting consumers' grocery baskets. According to the latest analyses, Quebecers could see a 5% increase in the price of certain fresh and frozen products within just a few weeks of the tariffs being imposed. This could lead to a change in consumer habits, with an increased preference for local products or a reduction in the consumption of certain imported products that have become more expensive.

Which food products will be most affected by the tariffs?

Some categories of essential products will be affected by the tariffs. Among these products are:

• Food products and beverages: 87% of these Quebec exports are destined for the United States, making the sector particularly sensitive to tariff fluctuations.

  • The main products that will be affected include: milk, cream, cheese, butter, yogurt, eggs, poultry, meats, cold cuts, fruits (notably melons), vegetables (such as tomatoes), coffee, tea, cereals, spices (for example, ginger), pasta, oils, soft drinks, sugar, honey, sauces, dressings, chocolate, and candy.
    
    

• Household and personal care products: toilet paper, tissues, beauty products, perfumes, soaps, shampoos, creams, toothpastes, and shaving products
  
  

• Fats and oils: 98% of these products are exported to the United States, which exposes them significantly to customs tariffs.

Additionally, everyday products such as bedding, appliances, and furniture could also see their prices increase due to tariffs.

Strategies for Quebec grocery stores and retailers to cope with the tariffs

Quebec retailers must adapt their strategies to mitigate the impact of the tariffs on consumers. Here are some key strategies:

1. Focus on local products

• Find Quebec or Canadian suppliers to reduce dependence on taxed imports.

• Showcase local products with “buy local” marketing. Some companies tag local products to highlight them for customers.

• Collaborate with local producers to get better volume pricing.

2. Reduce the cost of imports, optimize stock and order management

• Reduce orders of products that are heavily affected by tariffs.

• Make bulk orders with other retailers to take advantage of economies of scale.

4. Adapt pricing for products not affected by tariffs

• Offer economical formats or promotions on products less affected by tariffs.

• Provide loyalty discounts or point programs on local products to encourage customer retention.

5. Diversify revenue sources

• Offer new services such as cooking workshops, personalized grocery baskets.

• Develop an online presence to attract a broader customer base.

Are tariffs an opportunity for grocery stores?

Although tariffs present a challenge for grocery stores, they can also represent a strategic opportunity for businesses that can adapt. Here’s how Quebec grocery stores could benefit from this situation:

1. Build customer loyalty

Tariffs increase the cost of imported products, making local alternatives more competitive. This encourages consumers to turn to Quebec products, strengthening demand for local producers. Grocery stores that focus on an assortment of local products can position themselves as champions of “eating local”, and win the loyalty of customers who are concerned about the Quebec economy.

2. Improve profit margins on local products

With increased demand for Quebec products, grocery stores can adjust their margins more strategically. Since consumers are willing to pay a little more for quality local products, grocery stores can optimize their profitability while offering alternatives to imported products.

3. Reduce cross-border competition

Tariffs can discourage foreign suppliers from selling their products in Canada, thereby reducing competition in certain product categories. This can enable Quebec retailers to strengthen their market position by promoting local brands and reducing dependence on import giants.

4. Develop strategic partnerships

In response to rising import prices, grocery stores and retailers can forge stronger partnerships with Quebec producers and processors. These collaborations can lead to in-store exclusives, shorter supply chains, and savings on transportation costs.

5. Encourage innovation and product diversification

Restrictions on certain imported products may prompt grocery stores and producers to innovate. This can include creating new Quebec-made products that meet consumer needs, thereby reducing reliance on foreign markets. Local agri-food companies can also adapt their recipes and ingredients to circumvent price increases related to tariffs.

6. Optimize logistics and supply chains

Rising import costs are forcing grocers to rethink their supply chain. Those who succeed in optimizing their purchases, reducing intermediaries and favoring short circuits can turn this constraint into a competitive advantage that will still be valid even after tariffs are lifted.

Conclusion

Tariffs will undoubtedly impact grocery prices and Quebec and Canadian consumers, with an increase of about 5% on certain products. For grocery stores, there are several options available. Rather than suffering the effects of tariffs, Quebec grocery stores can use them as a lever to stand out and innovate. It won't be easy, but business owners are resilient individuals capable of ingenuity. By focusing on local products, optimizing logistics, and enhancing their offerings, they can turn this economic challenge into an opportunity for sustainable growth.

*At OneTrip, we help grocery stores in their digital transformation. Learn more about our solution by booking a free 15-minute call: book a call

References:

Détaillant Alimentaire. (n.d.). Tarifs douaniers : Quelles stratégies pour les épiceries ? [En ligne]. Récupéré le 2025-04-03, de https://detaillantalimentaire.com/Tarifs-douaniers-quelles-strategies-pour-les-epiceries

Banque de Commerce du Canada (BCC). (2025). Analyse statistique des impacts des tarifs douaniers américains sur l’économie québécoise. Récupéré le 2025-04-03, de https://www.bcf.ca/fr/intelligence-d-affaires/2025/analyse-statistique-impacts-tarifs-douaniers-americains-economie-quebecoise

MNP. (n.d.). Tarifs 101 : Ce que vous devez savoir. Récupéré le 2025-04-03, de https://www.mnp.ca/fr/points-de-vue/bibliotheque/tarifs-101-ce-que-vous-devez-savoir

Développement PME (DPME). (n.d.). Tarifs douaniers : Impact et solutions. Récupéré le 2025-04-03, de https://dpme.ca/tarifs-douaniers-impact-et-solutions/

Noovo Moi. (n.d.). Tarifs douaniers : Ces produits qui coûtent plus cher. Récupéré le 2025-04-03, de https://www.noovomoi.ca/style-et-maison/finances/tarifs-douaniers-produits-plus-chers.html