BC restaurants feel the squeeze as Pepsi raises prices due to trade war tariffs
June 29, 2018 8:07 pm B.C. restaurants feel the squeeze as Pepsi raises prices due to trade war tariffs
- A A + Listen
With the trade war between Canada and the United States heating up, one B.C. business says restaurants are already feeling the squeeze.
Canada has announced $16.6 billion worth of retaliatory tariffs against the U.S. on dozens of products, in response to President Donald Trumpâs tariffs on Canadian steel and aluminum.
READ MORE: Hereâs the final list of Canadian retaliatory tariffs taking effect against Trump on July 1
President and co-owner of C-Lovers Fish and Chips Brad MacLeod says his company got a letter from PepsiCo Canada on Friday, warning that prices would rise as of June 30.
The tariffs go into effect July 1.
WATCH: Canadian counter-tariffs impact costs at Winnipeg bakery
Story continues below
âPepsiCo Beverages Canada has thoroughly reviewed the implications of these proposed actions, and has concluded that we must pass through any cost increase in order to be able to continue to provide the highest quality products, unequaled service, world-class marketing and consistent consumer value,â reads the letter.
The letter says restaurants will get specifics on price increases in the coming days.
It adds that the company recognizes that âcost increases can be challenging,â and that the PepsiCo will reassess prices if âconditions subsequently change across the North American landscape.â
READ MORE: Boycotting U.S. products? Hereâs how to buy Ca nadian during a trade war
MacLeod said itâs a lose-lose situation for people north of the border.
âI donât think people realize how much this trade war that we got into with the U.S. is going to cost your average Canadian,â MacLeod said.
WATCH: Solution to tariffs on American goods is in the hands of the U.S.
Whether those price increases will be passed on to fish and chips-loving fans has yet to be seen.
MacLeod said his company is still debating whether to switch to alternate suppliers.
âWeâre going to have to make decisions on products, if we can source them locally â" Canadian products â" or increase prices,â he said.
READ MORE: Canada preparing âdetailedâ response to potential Trump auto tariffs: Freeland
âTheyâre no two ways about it.â
The Canadian tariffs add 25 per cent to steel products, and 10 per cent to other products. The full list can be found here.
The tariffs affect dozens of U.S. products ranging from staples to yogurt to sailboats.
WATCH: Trump defends tariffs policy, says âweâre not starting a trade war, but weâll finish itâ
On Friday, Foreign Affairs Minister Chrystia Freeland said the government had no plans to back down.
âCountless Canadians of many diverse political points of view agree with this approach,â Freeland said.
âWe will maintain the firm resolve to do so.â
PepsiCo did not say which of its products were affected by the tariffs, however several items on the list exist in the companyâs produ ct inventory.
Those include aluminum cans, orange juice and âwaters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured.â
Pepsi subsidiary brands include Tropicana and Gatorade.
-With files form Amanda Connolly
Â© 2018 Global News, a division of Corus Entertainment Inc.Report an error
Despite 'barriers' to firing public servants over issues like Phoenix, here's how many were fired for incompetence
How Mexican cartels are part of an âemerging threatâ of fentanyl flowing into Canada
Border officers frustrated at police inaction over stolen cars being exported through Montreal
Judge orders U.S. to reunite families separated at border within 30 days
'I don't know who I am anymore': Mother of 3 children killed in impaired driving crash describes life after their death
Group whose head called for 'eradication' of Israel got Canada Summer Jobs cash for last 4 years
Generation Z and the rise of digital influencers as celebrities
Generation Z and the (achievable) dream jobs they want
More Weekly FlyersSource: Google News US Business | Netizen 24 United States