Trade tensions are back in the spotlight, but that hasn’t slowed the pace of Canadian food innovation. From multi-million-dollar raises to new protein partnerships and functional food breakthroughs, the sector is pressing forward with resilience and momentum.
Here’s what’s been making headlines over the past two weeks:
📉 Trade tensions threaten to upend produce access, dairy exports, and input costs
💰 Major raises for omega-3 innovation, upcycled packaging, and functional chocolate
🥤 A $48.7M pea protein initiative focused on aging nutrition and ingredient scale-up
🛠️ New job openings across R&D, product development, and sales in food innovation
Canada–U.S. Trade Brief: Tariff Brinkmanship Raises Stakes for Food Supply Chains
Breaking down what’s changing in Canada-U.S. relations—and what it means for Canada’s food sector.
Canada–U.S. trade tensions have escalated dramatically—again.
President Trump is threatening to impose a 35% blanket tariff on Canadian imports by August 1 if a new deal isn’t reached, raising the prospect of widespread disruption. Negotiations are ongoing, but both sides remain far apart on key issues like dairy market access, procurement rules, and enforcement mechanisms.
Canada has paused retaliatory tariffs and removed a planned digital services tax in a bid to cool tensions. Still, supply chain uncertainty is growing—and food and produce sectors are warning of price hikes and product shortages if a deal isn’t struck in time.
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Dairy and produce are flashpoints: The U.S. wants more access to Canada’s tightly controlled dairy market, while Canadian officials insist supply management is non-negotiable. Meanwhile, the North American produce industry has warned that tariffs could destabilize fresh food access, hike prices, and hurt consumers on both sides of the border.
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Procurement and policy tools are in play: Canada’s new Interim Policy on Reciprocal Procurement Policy allows it to block U.S. companies from federal contracts if Canadian firms aren’t given equal access—adding another layer of tension. Small businesses are also feeling the pinch, with nearly two-thirds expecting conditions to worsen if tariffs take effect.
The Canada–U.S. trade relationship is teetering on the edge. If no deal is reached by August 1, tariffs could reshape food supply chains, raise costs, and squeeze small businesses. While cross-border integration remains strong, food and agri-food firms should prepare for volatility—and watch closely for an increasingly unlikely last-minute breakthrough.
💡 Food Innovation News
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Halifax-based Mara Renewables has raised US$9.1 million from S2G Investments to expand its algae-based omega-3 production for human and animal nutrition. Using precision fermentation, Mara’s algae-derived omega-3 oils offer a scalable, traceable, and sustainable alternative to fish-based DHA. The funding will deepen R&D, grow global manufacturing partnerships, and help offset pressure on wild fisheries. Mara’s 2024 output alone replaced the equivalent of 6.7 billion anchovies.
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Vancouver-based biotech startup Tydra Labs has won the $100,000 Women in Tech prize at Montréal’s Startupfest for its breakthrough technology that transforms seafood waste into high-value sustainable materials. The company’s platform upcycles byproducts from shellfish processing into biodegradable alternatives to plastic packaging.