U.S. tariffs sour outlook for Canadian sugar and candy companies

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Experts say that Canadian sugar and sweets companies will be hurt in particular if the customs tariff in the United States enters because most industry sales go south of the border.

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“Sugar and sweets emerge as one of these sectors, especially in the short term, which depends on the United States, and thus can see significant effects of American customs tariffs,” said Amanda Norris, an economist on the farm in Canada.

This industry is one of the most weak agricultural food sectors in Canada because more than 80 percent of its sales is for the United States, according to the Federal Communications Committee (FCC).

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Canada and the United States are currently in a month's truce after President Donald Trump threatened comprehensive customs duties on Canadian imports. Canada said it would be discussed with its own tariff.

Sebastian Poliot, Economic Adviser for Agriculture and Food, said if the United States provides a wide tariff on Canadian goods, the United States can start importing more sweets products from other places such as Europe.

“I expect that there will be a significant decrease in the exports of candy products to the United States (from Canada) in this case,” Poliot said.

Commercial data shows that in 2024, Canada exported $ 5.3 billion of sugar and sweets products to the United States, which is the highest supplier of sweets products to the United States, before Mexico and Germany, according to agriculture and agricultural food.

Canada is also exporting refined sugar, with the United States to a large extent, the largest export customer. According to the Canadian Sugar Institute, Canada has shipped nearly 60,000 tons of refined sugar to the United States in 2023.

Poliots said that the sugar and sweets industry in Canada is “exaggerated” compared to the United States, because sugar prices are more attractive to the north of the border.

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Poliots said the price of sugar is much cheaper in Canada due to the current classes and definitions in the United States.

This gives companies to manufacture in Canada an advantage when it comes to making candy and other sweets, he said: “They are companies that are working around definitions.”

The company said in the issuance of profits on February 6 that the current definitions and definitions on the table will have a “major negative impact” on the Canadian company Rogers Schujer and its subsidiary operational company.

Cadbury Chocolate-Raker Mondelez International, which has manufacturing operations in Canada, said in its profit report that any escalation in the trade conflict “will constitute a great risk” for its sales and introduction.

Other multinationals include brands with Canada Hershey, Nestle and MARS.

Lisa Macan, the owner of the joint charging and customs in the hemisphere, which helps customers-including candy companies-on import and export between the United States and Canada, said that some companies are already looking for ways to reach uncertainty over the next four years.

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“There is great concern that the margins cannot get a 25 percent increase,” McCan said.

“This is not possible.”

In the short term, there is not much of the Canadian industry that you can do to respond to the definitions, as Poliot said.

He said that if the customs tariff seems to be present, then multinational companies “will look more seriously in building new factories inside the United States.”

Norris said that if you choose Canada, it will also have a major impact on imported products such as packaging.

This is the anxiety of Canadian companies that do not depend on the United States for sales, such as Purdy's Chocolatier, based in Vancouver, which celebrates its 118th birthday later this year.

President Lawrence Ed said that the company imports some important raw materials, especially nuts, from the United States.

For example, the boots bearing the name called Gurgia Brons in the company already come from Georgia.

“We will not wander around it. He said,” We will not replace it. “

At the same time, the industry also deals with a significant rise in cocoa prices as farmers struggle with harsh weather.

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Norris said, with LONIE relatively weak at the present time, this could help compensate for some pressure from possible definitions by the United States, because it makes Canadian imports a little cheaper.

But on the other hand, the weakest LONIE makes imports from the United States – like packaging – is more expensive, she said: “So it is a balanced work there.”

There is one silver lining for companies such as Purdy's: Buy Canadian, which includes shoppers all over the country for Canadian products.

Eda said: “This is the moment when Bordi screams loudly about what it means to be a Canadian work,” Eda said.

This report issued by the Canadian press was published for the first time on February 17, 2025.

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