Trump Tariffs a big blow for Canadian potato chip companies making inroads in the United States

Naturally Homegrown Foods in Surrey, British Columbia, produces Hardbite — a potato chip brand that’s been surging in popularity.

Kirk Homenick, the president of Naturally Homegrown Foods:

"We’ve had a lot of fun scaling our business and growing to become the No. 3 kettle chip in Canada, behind Miss Vickie’s and and Kettle brand, which is out of the USA."

Currently, 20 per cent of Hardbite chips are sold to USA customers. The company had plans to increase that to 30 per cent this year. Then the tariffs hit.

Kirk Homenick:

" A 25 per cent tariff would definitely be very punitive, especially when you’re competing against brands like Kettle, for example. I’ll just call out that one, because it’s a large multinational brand that would not incur those tariffs because they are producing in the U.S. market."

The Hardbite team is currently in Anaheim pitching their chips at Natural Products Expo West, an important trade show for the industry. But the tariffs make it tougher to convince U.S. retailers to take on a Canadian-made product.

Kirk Homenick:

"In certain circumstances, we’re being asked for price concessions for sure, which puts margin compression on our business. Can we weather than in a short term? Yes. Long term, that’s not a sustainable business practice."

One silver lining for made-in-B.C. products like Hardbite? Shoppers are now looking for items that are made in Canada. At Stong’s Market in North Vancouver, Hardbite is prominently displayed with "Buy B.C." signage.

Mary Ann Lewis, shopper:

"I always buy Hardbite because it’s Canadian. I’m really concerned about our local people."

Patti Grant, shopper:

"I don’t want to be anything from the United States. We’ve been friends with them and now they’re being mean to us. They’re just bullying us, and it’s not fair."

For Hardbite, a spike in Canadian sales could help offset the tariff hit.

Kirk Homenick:

" Certainly there is a consumer sentiment, and we believe that that’s going to be there."

And the company is hopeful its long-standing American clients will find a way to keep buying.

Kirk Homenick:

"It’s amazing how you see the ability to collaborate and work together to find a solution. Newer business, it can certainly be more challenging."

He’s hoping Canadian counter-tariffs won’t increase costs to his business — and acknowledged the longer this trade war goes on, the harder it will be for Hardbite.