What Canada's counter-tariffs mean for restaurant food and packaging costs in 2026

Trade measures between Canada and the United States have changed several times since 2025, and each round raises the same question for a restaurant owner: will the invoice from my supplier change? Restaurants Canada's reading of the most recent round, announced in August 2026, points to what you can do now.

What did Canada announce in August 2026?

The federal government announced counter-tariffs of 15, 25 and 50 percent on 27.6 billion dollars of US-origin imports, starting September 8, 2026. Restaurants Canada responded on August 26. The association welcomed the decision to leave out many of the food products it had flagged, saying the choice should limit pressure on food costs and menu prices and reduce disruption to the food supply chain.

The list is subject to consultation, so details can change. The Department of Finance Canada publishes the current measures, and it is the only authoritative source for what is covered and at what rate.

Which food and supplies are still affected?

Restaurants Canada's statement says:

• Some dairy products. A range of US-origin cheeses carry a 25 percent tariff, and some whey products and selected food preparations face higher rates.
• Sacks and bags. Certain US-origin sacks and bags, under named tariff items, are subject to a 50 percent tariff.
• Packaging and equipment generally. The association said it would use the consultation to seek targeted exemptions where Canadian or alternative supply is not available.

The statement pointed to fresh produce and many other priority food items as excluded, but it did not claim that no food would be affected. If you buy US cheese, specialty ingredients, takeout bags or kitchen equipment, ask your supplier directly what has changed on your invoice.

How quickly do tariffs reach your invoice?

Slowly, and unevenly. Distributors may hold stock bought before a tariff, absorb part of the change for a time, or switch products. Your own price list from a supplier is a better guide than a headline. Ask for the date a price takes effect, and whether it is a temporary surcharge or a permanent increase.

What can you do about packaging costs?

Takeout and delivery packaging is the item most likely to be hit, because it is often imported. Practical steps:

1. Ask your supplier for Canadian or non-US alternatives. Compare price and quality, and order a sample before you commit.
2. Standardize. Use fewer sizes of container and bag, and you can buy in larger lots.
3. Check what you give away. Cutlery, napkins and sauce packets add up when they go into every bag.
4. Charge for bags only where the law allows. Some municipalities regulate single-use items, so check your city's rules before you add a fee.

How should you protect your margin on cheese and specialty items?

Look at your menu for dishes that rely on the affected products. If a cheese is central to a signature dish, ask a Canadian supplier for a comparable product before you change the price. If you do raise a price, do it on that dish only, and tell your regulars why, in a sentence, on the menu or in person.

How do you stay informed without spending hours on it?

Subscribe to Restaurants Canada's updates, check the Department of Finance page when your supplier mentions a change, and keep a short list of the five items that matter most to your menu. Review that list once a month.

What should you tell your team?

Staff will be asked about prices and about the news. Give them one clear sentence for each. If a dish has changed because a product is harder to buy, say so. If a bag or container is different, they should know why. Staff who understand the reason answer calmly, and guests tend to accept a short, honest explanation. Share the plan with the kitchen first, because they will see supplier changes before anyone else, and ask them to flag substitutions early.

When should you review your supplier terms?

Do it before the end of the quarter, not after a price notice arrives. Ask each supplier for a written price list with an effective date, and ask how much notice they give before a change. A supplier who tells you early is worth more than one who is a little cheaper but silent. Keep a note of the last three prices for your top items, so you can see which supplier moves fastest.

Would more regulars give you room to absorb a cost change?

Tariff headlines are out of your hands, but a loyal base of regulars is not. Mosey is a food discovery app where diners rate the dishes they ate and keep lists of the places they love, which helps good restaurants build that base without paying for placement. Nobody can pay to outrank you there, because Mosey Gold is earned from ratings alone.

More guides for your business:

• CPP and EI payroll costs for restaurants in 2026: what you pay on top of wages
• Hiring international students in a restaurant: the 24-hour weekly cap and what to check
• How to price a menu when food costs keep rising: a Canadian owner's method

More in the Canadian guides for food businesses.