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U.S. Tariffs on grocery goods leads to uncertainty for shoppers

The tariffs, initially set for Feb. 4, have been subject to multiple delays and revisions, creating uncertainty for consumers in small towns where food costs are already higher than in urban centres. The fluctuating tariff policies have made it challenging for local grocers to predict pricing trends, and residents are feeling the impact at the checkout.

As the April 2 deadline for new U.S. tariffs on Canadian agricultural imports looms, rural communities are bracing for the economic effects on grocery prices.

The tariffs, initially set for Feb. 4, have been subject to multiple delays and revisions, creating uncertainty for consumers in small towns where food costs are already higher than in urban centres.

The fluctuating tariff policies have made it challenging for local grocers to predict pricing trends, and residents are feeling the impact at the checkout.

Shoppers in Westlock are noticing the rising costs, particularly at larger grocery stores like Sobeys and Engel's Your Independent Grocer. Both stores, which serve as key sources of food for the community, are working to manage the price increases. However, the ongoing tariff uncertainty has made it difficult to predict how prices will evolve once the full implementation of tariffs occurs in April 2025.

Staff from Sobeys was unable to comment directly to the Town and Country (T&C) for this article.

Staff from Engel's were unable to provide an interview, however, the store provided a statement to T&C. “Canadians have been through a lot over the last few years, and we’re committed to doing everything we can to support our customers and our Canadian business partners," the statement reads.

"These tariffs are essentially a tax on consumers and run the risk of increasing food prices. We continue to work with our suppliers to understand the impact on their products and to mitigate cost increases where possible. Where we purchase directly from the U.S., we have been working to source alternatives from other countries. Our goal is to provide comparable alternative to U.S. products, in both quality and price.”

According to Alberta Agriculture and Forestry, the price of groceries rose by approximately 6.5 per cent in 2024, with meat and dairy products seeing some of the largest price hikes.

The Food Price Report, released December 2024, forecast Canadians will see the biggest price jumps year-over-year in 2025 on meat and vegetables, along with a jump in the cost of eating out at restaurants.

In response to these challenges, many Westlock residents are increasingly seeking local alternatives to imported goods. Both Sobeys and the Independent Grocer have adapted by expanding their offerings of Canadian-made and Alberta-grown products, which are less susceptible to tariff fluctuations. These products include locally raised meats, produce from nearby farms, and dairy from Alberta’s agricultural producers.

According to the Alberta Food Processing Association, Alberta’s food industry has seen a rise in consumer demand for local products, a trend driven by both economic concerns and an increasing awareness of the environmental benefits of sourcing food closer to home.

The hope of this latest “support Canadian- buy local” movement hopes to reduce reliance on imported goods, which helps mitigate the impact of potential rising tariffs.

Sobeys and Independent Grocer has been heavily promoting Canadian-made products, produce, meats, and dairy, with signage throughout the store and in weekly flyers. Small logos bearing a maple leaf help shoppers when deciding which products to buy.

The U.S. imposed tariffs on Canadian goods, including dairy, meat, and certain vegetables, all the way back in 2018 under former President Donald Trump’s administration. The tariffs, which were set at 25 per cent, aimed to address trade imbalances and protect US producers.

However, the tariffs were a point of contention in trade negotiations, leading to ongoing delays and adjustments.

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