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Winnipeg bakery owner worries Canadian counter-tariffs could impact costs

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Canadian counter-tariffs impact costs at Winnipeg bakery
A Winnipeg bakery owner worries Canada's retaliatory tariffs on some U.S. goods will take a bite out of her bottom line. Joe Scarpelli reports – Jun 29, 2018

A Winnipeg bakery owner worries Canada’s retaliatory tariffs on some U.S. goods will impact her bottom line, after she received a letter in the mail from a supplier Thursday, warning of price hikes starting July 1.

Betsy Hiebert, owner of Cocoabeans Bakeshop & Cafe, said she was shocked to open a letter from her supplier announcing price changes on tariff-related products.

“This is like a punch to the gut,” she said.

A 10 per cent tariff will go on approximately 50 of the supplier’s more than 400 brands, according to the letter.

Hiebert estimates at least half of her products in her gluten free bakery will be impacted by the tariffs.

“There are a lot ingredients on the list that we don’t have options for,” Hiebert said. “Like there are no other substitutes, like a Worcestershire sauce that is gluten free and vegan, there is only one brand.”

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On Sunday, Canada’s retaliatory tariffs on many U.S. products are set to kick in, which is in answer to steel and aluminum tariffs imposed by the Trump administration.

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Heibert plans on discontinuing some specialty items, but the raw ingredients not produced in Canada are leaving her with few options.

“We’re going to have to either pass that cost onto our customers or eat it,” she said.

Customer LaRae Grieve, who eats gluten free for health reasons, said her food is already pricey enough.

“In order to not be sick I guess we just have to now pay more to be healthy,” she told Global News at the bakery.

Theresa Thordarson, who is thinking about a gluten free diet, said these tariffs might end her experiment.

“I’m pretty new to the lifestyle, so already it’s kind of hard for me to adjust to pancakes being a little more than regular pancakes,” Thordarson said.

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The supplier ended the letter by urging Hiebert to “brace for the possibility of further tariff-related activity.”

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