Taxation Beyond Borders: Impact on Canada From US Tariffs

It has been a rocky start to the year between Canada and the US and as a result there is a heightened awareness both from consumers and businesses on where they choose to spend their dollars and what companies they support. This comes down to saving costs (avoiding tariffs) and / or about Canadian pride and supporting Canadian companies. While there is a big push towards “buying Canadian,” it’s important to recognize that doesn’t only mean supporting Canadian-owned brands. Many American companies have built significant operations in Canada which means they are employing local workers, sourcing Canadian ingredients, and ultimately investing in our communities and economy.  They too can still make the claim for “Made in Canada” meaning you have greater selection, innovation, and solutions right here at home.

Companies such as Frito-Lay, Coca-Cola, and Hershey are great examples.  All have US-based headquarters; however, they have invested globally, and in Canadian manufacturing and supply chains. When we buy their products which are made in Canada, it also means we are supporting everything from local farmers and packaging suppliers to truck drivers, maintenance teams, and more. The economic ripple effect extends beyond just what’s on the shelf. For towns built around major manufacturing plants, these facilities are often major employers and steady contributors to the local economy.

For operators, this is a smart way to navigate the current climate.  Sourcing from companies that manufacture locally helps avoid unnecessary tariff costs and cross-border delays, while still offering familiar, in-demand brands.  It’s not about where the head office is located – but where the jobs are, where the goods are made, and who’s putting investment back into the country.

The tariffs have posed economic challenges on Canadians while also challenging us to reflect on our nation’s sovereignty, identity, and what we can all do to support our local communities and fellow countrymen at large. While it may not be easy, we believe that the best any of us can do during these times is to stay well-informed and remember that if you have any questions or concerns your CPS Vending Account Manager is available to support you.

Need assistance sourcing “Made in Canada products? Let Complete Purchasing Services (CPS) Vending help you to find the perfect mix of Canadian products for your customer base.

About the Author:

Andrew Smith is the Procurement Director of Consumer-Packaged-Goods (CPG) at Complete Purchasing Services Inc, a leading supply chain solutions provider for hospitality and non-commercial operators in Canada. Andrew has been in the foodservice industry for 9+ years with expertise in cold beverage strategy and CPG category development. Learn more about Complete Purchasing Services by visiting www.eCPS.ca.