Trump tariffs have sparked a ‘Buy Canadian’ surge, but keeping the trend alive faces hurdles

Escalating trade tensions between Canada and the United States have ignited a new wave of Canadian patriotism, with consumers consciously choosing made-in-Canada products as an act of economic self-preservation and national pride.

U.S. President Donald Trump is expected to impose tariffs on most Canadian and Mexican goods on March 4, after a month-long delay. This, along with Trump’s calls to make Canada the 51st U.S. state, has prompted Canadians to rally around the so-called “Buy Canadian” movement.

Recent research indicates a significant number of Canadians are now showing a strong preference for domestic products, with many willing to modify their purchasing behaviours. One recent poll revealed 42 per cent of Canadians polled will “absolutely do everything” to avoid purchasing U.S. products. Eighty-eight per cent said they would buy a product promoted as “made in Canada.”

Another poll found that 56 per cent of Canadians said they would stop buying a certain product altogether if there is no Canadian-made alternative.

While the “buy local” movement has deeper roots, often resurfacing during periods of economic tensions, the current surge stems from a desire to support homegrown brands and manufacturers they see as reflecting their values.

Buy Canadian movement challenges

While the Buy Canadian movement is gaining traction, actually sustaining it comes with notable challenges. Some experts caution that reducing reliance on U.S. imports is a gradual process contingent on consistent consumer commitment.

Two primary barriers stand in the way of this sustained change: the higher costs of Canadian-made goods, particularly during the ongoing cost-of-living crisis, and the difficulty consumers face in identifying domestically produced items.

Addressing these two issues is crucial for the long-term viability of the Buy Canadian movement.

Buying Canadian can be pricey

The first primary obstacle facing the Buy Canadian movement is the price disparity between domestic goods and their imported counterparts.

Canadian domestic goods often come with a higher price tag due to production costs, economies of scale, transportation and other economic factors. These factors make it difficult for local manufacturers to compete with cheaper foreign alternatives.

The ongoing cost-of-living crisis, which is driving up prices for goods and services across various sectors, is further intensifying the challenge. One of the biggest household expenses, the cost of groceries, remain particularly high, having jumped by 7.8 per cent in 2023 — its highest level in nearly 40 years.

Higher prices across almost all sectors has resulted in 71 per cent of Canadians naming the cost of living as a top domestic concern, making it the leading news story in the country in 2024.

While many consumers express a desire to support local businesses even if they are pricier, the reality of higher costs could make it difficult for consumers to consistently choose domestic products over more affordable foreign alternatives.

Is it really ‘Made in Canada’?

The second major obstacle for the Buy Canadian movement lies in confusion over product labels. For many Canadians, identifying which products are truly Canadian versus imported alternatives can be a challenging task.

A recent poll found that 42 per cent of Canadians believe grocery food products are made in Canada, while the actual number of products fully made in Canada is closer to 10 per cent.

Compounding matters further, understanding country of origin labelling can also be challenging. Labels such as “Made in Canada” and “Product of Canada” have specific definitions.

“Made in Canada” means the last substantial transformation of the good or service occurs in Canada but may contain up to 49 per cent imported ingredients, while “Product of Canada” means all, or nearly all, significant parts and processing are Canadian.

This nuanced labelling and similarity in wording can lead to confusion, making it difficult for consumers to make informed choices.

Building on the Buy Canadian momentum

Canadian businesses and retailers have been responding to growing consumer demand for domestic products with concrete marketing strategies. For instance, Loblaw Companies, Canada’s largest food retailer, has committed to “doubling down on securing food grown and made” locally.

Grocery stores are also making it easier for consumers to identify local products. Several grocery chains have revamped their in-store displays by using shelf tags, stickers and end-of-aisle signage to clearly identify Canadian-made food items.

Retailers and brands are increasingly spotlighting domestic brands by rolling out targeted pricing deals. Major grocery chains have begun offering significant price reductions and exclusive promotions on items branded as “Made in Canada.”

Additionally, Canadians are flocking to websites such as Madeinca.ca, which aim to demystify country of origin and labelling so shoppers can distinguish domestic products from imports.

Although maintaining this momentum may be challenging, consumers are eager to showcase their patriotism at the check-out. With businesses and policymakers actively improving product transparency and addressing cost concerns, the Buy Canadian movement is poised to gain further traction. After all, nothing embodies unity quite like a little patriotic shopping, the Canadian way.

Melise Panetta does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.