Donald Trump’s latest round of tariffs is stirring up unexpected scrutiny north of the border—this time, hitting Canada’s beloved coffee chain, Tim Hortons.
Newsweek has contacted Tim Hortons for comment via email.
Why It Matters
Trump has imposed a 25 percent tariff on Canadian imports, alongside a 10 percent tariff on Canadian energy imports, which began in early March. Last week, Trump’s 25 percent duties on steel and aluminum came into effect. In response, Canada has implemented its own retaliatory tariffs.
Amid these escalating tensions, businesses find themselves caught in the crossfire, with the OECD forecasting that the tariffs will slash growth in Canada by half this year. Meanwhile, some Canadian consumers and businesses are boycotting American products, which could further hurt businesses. As people start to examine exactly what defines a product as Canadian, Tim Hortons is another potential victim of Trump’s trade war.
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What To Know
Coffee chain Tim Hortons, once a single coffee shop in Ontario, has grown into a Canadian icon. However, after being acquired by U.S. burger chain Wendy’s and later becoming part of a holding company backed by a Brazilian investment firm, questions have arisen about whether the company has lost its Canadian identity.
A recent social media post from Tim Hortons proudly declared it to be “proudly Canadian,” but people on social media are debating this assertion, amid heightened consumer resentment in Canada over Trump’s trade war, leading many to avoid American products. Meanwhile, a “Buy Canadian” movement is gaining traction as frustration with the U.S. administration grows, and Canadians seek alternatives to U.S.-owned goods.
But Tim Hortons insist they are still very much Canadian. It was founded in 1964 by Canadian hockey legend Tim Horton and businessman Jim Charade in Hamilton, Ontario. Initially a single coffee and doughnut shop, the chain quickly gained popularity across Canada for its affordable coffee and baked goods. By the 1980s, Tim Hortons had expanded nationwide, becoming a beloved Canadian icon.
In 1995, the company was sold to the Wendy’s Company, a U.S.-based fast food chain, which led to further growth. In 2014, Tim Hortons merged with Burger King to form Restaurant Brands International (RBI), a holding company backed by a Brazilian investment firm, 3G Capital. In 2014, at the time of the takeover, 3G held 47 percent of the voting power in Restaurant Brands International, but that has slowly decreased over time to 26 percent as of Decemeber 31, 2024.
Today, Canadian banks like Toronto Dominion, Bank of Montreal, National Bank, and Royal Bank, along with institutional investors such as the CPP Investment Board, collectively hold a stake in the company similar to that of 3G, Michael Oliveira, Tim Hortons’ director of communications, told CBC.
Oliveira said it is “simply not accurate” to say that Tim Hortons is Brazilian-owned.
Tim Hortons operates 6,043 stores worldwide, with 64 percent of them located in Canada. The Canadian stores employ over 100,000 people and are owned by 1,500 franchisees, while an additional 400 work at the corporate office in Toronto. Meanwhile, Restaurant Brands International, Tim Hortons’ parent company, is listed on both the Toronto Stock Exchange and the New York Stock Exchange and is regulated under the Canada Business Corporations Act.
And Tim Hortons roasts most of its coffee at two facilities: one in Ancaster, Ontario, and another in Rochester, New York. The company owns five distribution centers in Canada and works with third-party partners in four more. It also operates a manufacturing plant in Oakville, Ontario, producing fondants, icings, and fills.
Florian Muenkel, an assistant professor of finance at Saint Mary’s University’s Sobey School of Business in Halifax, explains that when determining if a company is Canadian, factors such as where its sales come from, where it produces goods, where it employs people, and, to some extent, who owns it should be considered.
So, does he consider Tim Hortons to be Canadian? “As an economist, I would say yes,” he told CBC.
Douglas Hunter, who wrote a book about Tim Hortons called Double Double: How Tim Hortons Became a Canadian Way of Life, One Cup at a Time, added: “I think it’s Canadian in spirit. Somebody in Sao Paulo is not sitting at a computer desk deciding, you know, how many crullers we’re going to order.”
What People Are Saying
Michael Oliveira, Tim Hortons’ director of communications, told CBC: “We understand how this ‘Brazilian-owned’ narrative evolved over time but it’s simply not accurate.”
Canada’s Finance Ministry said on March 4: “Canada will not stand by as the United States imposes unwarranted and unreasonable tariffs on Canadian goods.”
The White House said on February 1 that “tariffs are a powerful, proven source of leverage for protecting the national interest.”
What Happens Next
Trump has said that his “reciprocal tariffs”—aimed at amending what he sees as unfairness in America’s trading relationships—are set to come into effect on April 2, which could hit Canada’s economy hard.
