Amid growing trade tensions between the United States and Canada, a rising wave of Canadian consumers is choosing to prioritise domestically made products over American imports. This shift follows the imposition of a 25% levy on Canadian steel and aluminium by former U.S. President Donald Trump, along with threats to extend tariffs to other sectors. In response, a movement urging Canadian shoppers to support local businesses and reduce dependence on U.S. goods is gaining traction.
Canadian Consumers Take Action
The call to “Buy Canadian” has been embraced by individuals like Rebecca Asselin, a health insurance professional and mother from Saint-Jean-sur-Richelieu, Quebec. She recently switched to Royale diapers, produced by Irving Personal Care in Moncton, New Brunswick—one of Canada’s only manufacturers of baby diapers and training pants.
“I never really considered before where diapers were made, but apparently, Canadian-made diapers are kind of hard to come by. That’s a big change for us,” Asselin told Reuters.
Irving Personal Care has seen a surge in demand, with Vice President of Business Operations Jason McAllister reporting that weekly shipments have quadrupled as retailers across Canada seek to increase distribution of locally produced goods.
U.S. Businesses Feel the Impact
The shift is affecting a range of industries, including the beverage sector and fresh produce exports. American whiskey and bourbon producers, such as Brown-Forman, the maker of Jack Daniel’s, have expressed concern over declining sales in Canada. In a statement, the company called the removal of U.S. spirits from Canadian liquor stores an even greater setback than the retaliatory tariffs imposed by Canada.
Similarly, the citrus fruit industry in California is facing uncertainty. According to a source familiar with the matter, several Canadian retailers cancelled their orders for American citrus products in early March. GT’s Living Foods, a Los Angeles-based kombucha producer, has also felt the squeeze, as major Canadian retailers like Walmart, Loblaw’s, Metro, and Sobey’s scale back orders due to the unpredictable tariff environment.
Daniel Bukowski, former Senior Vice President of Sales at GT’s Living Foods, revealed that distributors for Canadian retail chains have significantly reduced their orders. “They will buy one truck instead of two trucks of products because retailers are being cautious and waiting to see how this situation plays out,” he said.
Canadian Retailers Shift Priorities
While major retailers like Walmart Canada have expressed their commitment to working with suppliers to navigate these uncertain times, others, such as Metro, have stated that they will continue to prioritise Canadian products whenever possible.
Demeter Fragrances, a Pennsylvania-based perfume manufacturer, has decided to halt its planned 2025 expansion into Canada. CEO Mark Crames attributed the decision to shifting consumer sentiment. “Canadian sentiment has turned away from American products. Consequently, it seems like a wasted effort, and we simply scrapped the initiative,” he stated.
Similarly, Grime Eater Products Limited, a Canadian producer of hand cleaning solutions, has struggled for years to get its products stocked in Canadian Tire stores. However, as the Buy Canadian movement grows, Vice President Tracy Hayes is now optimistic about future opportunities. She revealed that Canadian Tire is considering reducing its offerings of Fast Orange, a U.S.-made competitor brand.
A Turning Point in Trade Relations?
With the Buy Canadian movement gaining momentum, both Canadian manufacturers and American exporters are experiencing the effects of shifting consumer preferences. As political and trade disputes continue to shape economic policies, businesses on both sides of the border must adapt to an evolving marketplace where national loyalty plays an increasingly significant role in purchasing decisions.
