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Canada slaps 10% tariff on canned vegetable imports for up to 200 days

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Canada slaps 10% tariff on canned vegetable imports for up to 200 days
Canada slaps 10% tariff on canned vegetable imports for up to 200 days

Canada will slap a provisional 10 per cent tariff on global imports of canned vegetables to address “immediate challenges” facing the domestic industry, the federal government announced Friday.

Finance Minister Francois-Philippe Champagne said in a statement the new tariff will take effect immediately and will remain in place for a maximum of 200 days.

The tariff will not apply to imported canned vegetables from the United States, Mexico, Israel, Chile, and developing countries “in accordance with Canada’s international trade obligations,” Finance Canada said.

“The government is committed to standing up for Canadian producers and ensuring they have the support they need to remain competitive in the face of global challenges,” Champagne said in the statement.

“With the imposition of this provisional safeguard measure, our priority remains a balanced approach that not only provides relief to our canned vegetables sector but also protects food security and affordability for Canadians.”

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Conservative agriculture critic John Barlow told Global News the tariff was “a positive step” amid concerns from the industry about potential dumping of canned vegetables into Canada — particularly in response to U.S. tariffs.

Dave Epps, a Conservative MP and Ontario tomato farmer, also voiced support for the measure in an interview.

“Other economies that were selling into the U.S., now at the last minute were looking for homes for their product,” he said.

“It raises all these questions about the quality of it coming in, it raises questions around pricing. So this (tariff) has a lot of industry support.”

Because the U.S. is exempt, the tariff shouldn’t lead to cost increases for consumers, said Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University — unless it stays beyond the 200 days.

“The U.S. is a big supplier of our canned vegetables,” he said in an interview.

“But 10 per cent is actually huge for that category. It’s a cents-driven category, so I suspect they’ll basically stop importing (canned vegetables from affected countries).”

Click to play video: 'Carney aims to slash grocery bills with $3.2B food security strategy'
Carney aims to slash grocery bills with $3.2B food security strategy

What led to the canned vegetable tariffs?

Finance Canada said the measure was temporary as the government waits for the Canadian International Trade Tribunal to complete an inquiry into whether increased imports of frozen and canned vegetables are harming domestic processors.

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The tribunal is expected to conclude its work by Sept. 9, and the ministry said the tariff would be stopped if the inquiry determines Canadian producers were not adversely impacted.

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However, a Finance Canada official told Global News the ministry conducted its own assessment — which included consultations with Canadian vegetable producers and reviewing government import data — to determine the provisional tariffs were necessary to protect the domestic industry.

The official, who spoke on background, said the tariffs would act as “a bridge” toward whatever longterm safeguard the tribunal might recommend, adding the ministry is confident the inquiry will reach the same conclusion as the ministry.

The inquiry was announced by Champagne in March after “a formal request from the Canadian Association of Vegetable Growers and Processors.”

The group — which does not appear to have a website or other online presence with contact information, and was registered with the federal corporation registry as a non-profit on Jan. 20, 2026 — had lobbyists meet with Finance Canada and the Prime Minister’s Office in February, according to the lobby registry.

A Montreal international trade lawyer, Bernard Colas, is listed as the sole director on the corporate filings for the association.

Colas confirmed in an email to Global News that he is the association’s executive director and referred all questions to a media spokesperson who is also a registered lobbyist for the group.

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The spokesperson issued a statement Global News they said was attributable to the association, which praised the new tariff.

“Today’s provisional safeguard measures will help stabilize supply chains, support domestic production and processing capacity, and strengthen Canada’s long-term ability to feed itself,” the statement said.

The statement says the Canadian Association of Vegetable Growers and Processors “is the voice of Canadian vegetable growers, harvesters, employees, and processors from coast to coast to coast, working to protect and strengthen the sector from farm to consumer.”

The Fruit and Vegetable Growers of Canada (FVGC), which has existed since 1922, says it is “the voice of Canadian fruit and vegetable growers.” It did not respond to multiple requests for comment.

An NDP source told Global News on background that, in nearly eight years working on agricultural policy issues for the party, “I’ve never once heard of or met with” the Canadian Association of Vegetable Growers and Processors.

A spokesperson for Agriculture Minister Heath MacDonald’s office said in an email that they have heard of the group “but our interaction with them has been very minimal” and no ministerial meetings have taken place.

The Finance Canada official, however, said the association is “a very, very real group” that is “representative of the industry’s needs,” adding it appears to have been formed at the request of other industry groups for the purposes of lobbying for the tribunal inquiry.

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A Conservative party source confirmed on background that the association’s purpose was to lobby for the canned vegetable measures.

Charlebois said there is “absolutely a lot of lobbying going on in the food industry right now” as the industry looks for relief from tariff pressures.

“The market conditions have actually changed so much due to tariffs, and you can’t overlook what’s going on in the U.S.,” he said.

“This decision today points to how countries will deal with trading pressures from all over the world.”

Click to play video: 'Produce prices surging'
Produce prices surging

Food strategy calls for boosting domestic vegetable production

The tariff comes after Prime Minister Mark Carney launched a new federal food security strategy this month that aims to boost domestic agricultural production and lower grocery costs for Canadians.

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The strategy says Canada “relies heavily on imported processed foods, such as for tinned and frozen fruits and vegetables,” despite being a “significant producer of vegetables.”

According to the government, 45 per cent of preserved fruit and vegetables consumed by Canadians are imported, more than half of which come from the U.S. alone. For fresh vegetables, the import dependency rate is even higher at 72 per cent.

The strategy calls for additional investments in greenhouse infrastructure and technology to support year-round growing of fruits and vegetables in Canada, with a goal of reducing dependence on imported crops by 20 per cent by 2032.

Barlow said he was supportive of measures that increase domestic processing, but added real action is needed beyond promises.

“If we really want to defend the produce growers in Canada — vegetables specifically — we have to reduce the red tape and taxes on these businesses to encourage that value added in processing in Canada, and that is really a critical piece we’re missing,” he said.

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