A Montreal-based public policy think tank is warning that Ottawa’s newly imposed tariffs on imported canned vegetables will add to grocery bills at a time when Canadians are already struggling with rising food prices.The Montreal Economic Institute (MEI) said Monday that the federal government's decision to impose a 10% tariff on imported canned vegetables runs counter to efforts aimed at easing affordability pressures for households.“The federal government cannot on the one hand claim to want to address the high cost of living while on the other hand imposing new taxes on the food Canadians consume,” said Renaud Brossard, vice-president of communications at the MEI.“It is unfortunately Canadian families, and in particular low-income families, who will pay more because of this decision out of Ottawa.”The comments came after Statistics Canada released its latest Consumer Price Index data showing costs rose 3.2% over the past 12 months. Food purchased from stores increased by 4.3% during the same period, while prices for canned vegetables and other vegetable-based products climbed 4.6%.The federal government announced Friday that it would impose a 10% tariff on imported canned vegetables.The MEI argues tariffs ultimately raise costs for consumers by increasing the price of imported goods and reducing competitive pressure on domestic producers. The organization said it has previously called for greater trade liberalization rather than protectionist measures such as tariffs.The think tank contends that additional trade barriers could further strain household budgets, particularly for lower-income Canadians who spend a larger share of their income on food.The federal government has defended the use of tariffs in various sectors as a way to support domestic industries and respond to international trade challenges. However, critics argue such measures often result in higher prices being passed on to consumers.The Montreal Economic Institute is an independent public policy think tank with offices in Montreal, Ottawa and Calgary.
