Schwartz’s goes local amid rising tariff costs

As U.S. tariffs disrupt supply chains, Montreal’s Schwartz’s Deli has replaced its longtime Cott’s Black Cherry Soda with Fleischer’s, a made-in-Quebec alternative.

Saibal Ray, professor at McGill Desautels, explains that aluminum tariffs have affected beverage producers despite primarily targeting larger industries. Since cans can represent up to one-third of soda production costs and may be tariffed multiple times, niche products with narrow margins are particularly vulnerable.

“When the price increases by that much, most of your margin goes away,” Ray said. The switch illustrates how trade pressures are reshaping purchasing decisions while strengthening demand for locally produced goods.