Canadian Grocery Bills Are About to Jump—Here’s Why
If you’ve noticed your grocery bill creeping up, brace yourself: prices across Canada are set to spike even higher. According to Loblaw Companies Limited’s latest Food Inflation Report, tariffs and trade tensions are about to hit your shopping cart hard.
Tariffs Trigger Price Hikes on Everyday Essentials
The ongoing Canada-U.S. trade war has finally caught up with the grocery aisle. Loblaw’s May 2025 report warns that tariffs now affect thousands of products, including staples like produce, rice, pasta, dairy, and coffee. Even health and beauty items—think soap, shampoo, and cosmetics—aren’t immune.
In total, tariffs impact around 6,000 items, with about half being food. Meat prices have already soared by 16% compared to last year, mostly due to supply shortages. Cocoa costs are also climbing, and while coffee and eggs have remained stable for now, future increases could be on the horizon as U.S. pricing continues to influence Canadian markets.
Grocers Seek New Suppliers to Ease the Pain
While the outlook isn’t rosy, it’s not all doom and gloom. The Government of Canada’s recent six-month reprieve helped prevent an even sharper spike in food inflation. Plus, a stabilizing Canadian dollar has provided some relief.
To help keep prices in check, many grocery stores are turning to new international suppliers and improving product labelling so shoppers can make informed choices. By diversifying supply chains away from the U.S., grocers hope to soften the blow of rising costs.
What Shoppers Should Expect
As inventories turn over and new, tariff-affected stock fills the shelves, Canadians should prepare for higher prices on many everyday items. While some relief measures have helped, the effects of the trade war are likely to linger.
With tariffs driving up costs on thousands of products, Canadian grocery shoppers should expect steeper bills this summer. Staying informed and flexible with your shopping choices will be more important than ever.
