Alberta Hospitality Association Statement on U.S. Tariffs and Retaliatory Measures

As the trade deadline approaches, trade experts warn that Canada should prepare for unstable trade partnerships over the next four years.

In response, Canada has signalled counter-tariffs on many essential goods, including those crucial to the restaurant industry. These countermeasures will increase costs for businesses, further fuel inflation, and reduce consumer discretionary spending, making it even harder for restaurants and bars to maintain profitability.

The High Stakes for Alberta’s Hospitality Industry

The food and beverage industry is a major pillar of Alberta’s economy, supporting thousands of small businesses and employing tens of thousands of workers. Any disruption to the supply chain—whether through higher food costs, packaging expenses, or key operational items—will have a direct and significant impact on our industry.

Why Rising Costs Are a Threat to Survival

Alberta’s hospitality sector already operates on exceptionally slim margins. Additional financial strain from tariffs, inflation, and rising food costs puts many local restaurants, bars, and food service operators at risk of closure.

These businesses are already facing:

✔️ Rising interest rates
✔️ Labour shortages
✔️ Pandemic-related debt

Unlike large corporations, most independent hospitality businesses do not have the financial cushion to absorb sudden cost increases. Even a 5% increase in food and supply costs—easily possible with new tariffs—could mean the difference between staying open or shutting down. 

With profit margins as low as 3-5%, restaurants cannot simply absorb these cost increases. The only options?

Raise menu prices → risks driving away customers
Cut jobs and hours → hurts workers and the economy

The industry has already significantly increased menu prices over the last two years due to supply chain issues. If costs continue to rise, it will limit consumer affordability and reduce overall demand, creating a negative cycle of economic strain.

What Needs to Happen Next

Policymakers must recognize the fragility of the hospitality sector when making trade decisions. Without targeted support, many businesses won’t survive these economic pressures.

The AHA is advocating for the following measures to protect Alberta’s hospitality industry:

🔹 Exempt food from counter-tariffs – At a minimum, essential food products that cannot be grown in Canada should be excluded.

🔹 Use counter-tariff revenues to support impacted small businesses – Relief funding should go directly to those most affected.

🔹 Eliminate interprovincial trade barriers – Especially in alcohol sales, agricultural regulations, supply management, and trucking laws to strengthen our industry.

We have raised these concerns with leaders at all levels of government. Make your voice heard by using this email template to contact your elected representatives.

AHA will continue to monitor developments, advocate for policy changes, and keep our members informed.  We have created a webpage in our Member’s portal with links to background materials related to essential and evolving issues.  To stay updated with the latest developments, log into the AHA Member’s portal for additional information.