Canadian supermarkets see higher profits despite U.S. tariffs, thanks to limited import reliance and strong private-label sales.

Despite U.S. and Canadian counter-tariffs in February 2025, Canada’s top supermarket chains—Loblaw, Metro, and Sobeys—report higher profits and improved gross margins, with Loblaw reaching a five-year high of 32.02%. Price increases were milder than expected, attributed to limited reliance on U.S. imports, supply chain flexibility, consumer shifts to private-label goods, and retailers’ resistance to supplier price hikes. Tariffs mainly affected items like orange juice and coffee, but overall impact on grocery prices was negligible. Adjustments to tariff-related costs are ongoing, with full phase-out expected in coming weeks.