{"id":16708,"date":"2025-02-17T18:30:13","date_gmt":"2025-02-17T18:30:13","guid":{"rendered":"https:\/\/torontotribune.ca\/index.php\/2025\/02\/17\/canadas-sugar-candy-industry-could-be-hit-hard-by-tariffs-experts-say-national\/"},"modified":"2025-02-17T18:30:13","modified_gmt":"2025-02-17T18:30:13","slug":"canadas-sugar-candy-industry-could-be-hit-hard-by-tariffs-experts-say-national","status":"publish","type":"post","link":"https:\/\/torontotribune.ca\/index.php\/2025\/02\/17\/canadas-sugar-candy-industry-could-be-hit-hard-by-tariffs-experts-say-national\/","title":{"rendered":"Canada\u2019s sugar, candy industry could be hit hard by tariffs, experts say – National"},"content":{"rendered":"


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Canadian sugar and confectionary companies would be hit particularly hard if U.S. tariffs<\/a> come into play because most of the industry\u2019s sales go south of the border, experts say.<\/p>\n

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\u201cSugar and confectionary does stand out as one of those sectors, especially in the short term, that is very reliant on the U.S., and therefore could see big impacts from U.S. tariffs,\u201d said Farm Credit Canada senior economist Amanda Norris.<\/p>\n

The industry is one of Canada\u2019s most vulnerable agri-food sectors because more than 80 per cent of its sales are to the U.S., according to FCC.<\/p>\n

Canada and the U.S. are currently in a month-long truce after President Donald Trump threatened sweeping tariffs on Canadian imports. Canada has said it will retaliate with tariffs of its own.<\/p>\n

Agriculture and food economic consultant Sebastien Pouliot said if the U.S. does introduce widespread tariffs on Canadian goods, the U.S. could start importing more confectionary products from other places like Europe.<\/p>\n

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\u201cI would expect there would be a significant decline in exports of candy products to the United States (from Canada) in that case,\u201d said Pouliot.<\/p>\n

Trade data shows that in 2024, Canada exported $5.3 billion in sugar and confectionary products to the U.S. It\u2019s the top supplier of confectionary products to the United States, ahead of Mexico and Germany, according to Agriculture and Agri-Food Canada.<\/p>\n

Canada also exports refined sugar, with the U.S. by far its biggest export customer. According to the Canadian Sugar Institute, Canada shipped almost 60,000 tonnes of refined sugar to the U.S. in 2023.<\/p>\n

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Canada\u2019s sugar and confectionary industry is \u201coverdeveloped\u201d compared with the U.S., said Pouliot, because sugar prices are more attractive north of the border.<\/p>\n

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The price of sugar is significantly cheaper in Canada because of existing protectionist quotas and tariffs in the U.S., said Pouliot.<\/p>\n

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That gives companies manufacturing in Canada an advantage when it comes to making candy and other confections, he said: \u201cIt\u2019s companies working around the tariffs.\u201d<\/p>\n

The tariffs and retaliatory tariffs currently on the table would have a \u201csignificant adverse impact\u201d on Canadian company Rogers Sugar and its operating subsidiary Lantic, the company said in a Feb. 6 earnings release.<\/p>\n

Cadbury chocolate-maker Mondelez International, which has manufacturing operations in Canada, said in its earnings report that any escalation in the trade dispute would \u201cpose a significant risk\u201d to its sales and input costs.<\/p>\n

Other multinational confectionary brands with manufacturing operations in Canada include Hershey, Nestle and Mars.<\/p>\n

Some companies are already looking at ways to pivot as they face uncertainty over the next four years, said Lisa McEwan, co-owner of Hemisphere Freight and Customs Brokerage, which helps clients \u2014 including candy companies \u2014 import and export between the U.S. and Canada.<\/p>\n

\u201cA huge concern is that the margins just can\u2019t take a 25 per cent increase,\u201d said McEwan.<\/p>\n

\u201cIt\u2019s not feasible.\u201d<\/p>\n