Escalating Trade War Tensions Lead to Anticipated Increase in Tariff-Impacted Products by Loblaw
In the ongoing trade war between Canada and the U.S., Loblaw Cos. has been actively responding to tariff-impacted products, as reported by Canadian Grocer. Since May 2025, the retail giant has increased the number of products labeled with a "T" symbol, indicating items hit by tariffs.
The latest data from July suggest an increase in the presence of tariff-hit products marked by these "T" symbols in Loblaw stores. Although the exact numbers of tariff-hit products at the peak are not explicitly stated, the trend shows a growth that may have reached or exceeded 100 new Canadian supplier products.
Loblaw's President and CEO, Per Bank, noted in July that sales of these tariff-impacted products have decreased by more than 15-20%, and the trend is accelerating. Some declines in sales volume on products marked with a "T" have neared 50% where "strong alternatives" exist.
Bank also stated that there have been cases where cost increases are not justified or are meant to take advantage of tariffs over the long-term. To counter this, Loblaw is strongly pushing back, advocating for its customers and focusing on value. The company is making it easier for customers to shop Canadian brands and products, and will continue to do so.
In support of Canadian products and brands, Loblaw has recently added 70 local suppliers, bringing its total number of new Canadian vendors to 100 for the year. This strategic move is part of a counter strategy to inform customers and promote Canadian alternatives.
Loblaw Cos. is scheduled to release its second quarter earnings on July 24. As the U.S. President Donald Trump threatens to impose 35% tariffs on Canadian imports on Aug. 1, Loblaw Cos. estimates the number of tariff-hit products in its stores could reach 7,500.
The Bank of Canada commends Prime Minister Mark Carney for the Canadian government's efforts to resolve these U.S.-driven trade issues. The Bank expects the number of "T" symbols to rise closer to 7,500 due to the ongoing trade war.
In these challenging times, Loblaw remains committed to its customers, focusing on value, making it easier for customers to shop Canadian brands and products, and advocating on their behalf.
- The growth in the number of tariff-hit products in Loblaw stores, indicated by the "T" symbols, may have reached or exceeded 100 new Canadian supplier products, highlighting a significant shift within the supply chain of the industry.
- To counter the potential impact of the ongoing tariff-related challenges, Loblaw Cos. has added 70 local suppliers, with a total of 100 new Canadian vendors this year, as part of its strategy to promote Canadian alternatives within the business sector.
