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About $16.6 billion (US$12.7 billion) of levies ranging from steel and aluminum to soya sauce and hair lacquer came into effect on July 1 as Canada’s response to President Donald Trump’s metals tariffs. While fierce competition with rivals including Metro Inc. and Walmart Inc. has so far kept inflation muted as companies cut costs, Weston predicted stronger pricing pressure across the industry.

“We don’t think it’s going to be meaningful, super significant, but it certainly will be higher than what it is today,” he said.

Photo by Nathan Denette/The Canadian Press files

Toronto-based Loblaw fell 0.7 per cent to $68.31 at 12:44 p.m. The shares are little changed on the year.

Companies in other fields are also bracing for a ripple effect of tariffs. That includes Toromont Industries Ltd., which operates Caterpillar Inc. dealerships in Manitoba, Ontario and Eastern Canada.

“When you look at the environment with steel and aluminum, the results of tariff change could impact our pricing,” Chief Executive Officer Scott Medhurst said on an earnings call Wednesday. “So we’re monitoring that closely and working with our supply chain on that to ensure we understand it fully.”

–With assistance from Kristine Owram and Erik Hertzberg.

Bloomberg.com