Canadian Retailers Get Creative amidst US Trade Tensions
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MONTREAL — April 20, 2025 — US trade tensions are significantly impacting the choices of Canadian retailers and consumers.
in a landscape shaped by trade disputes,Canadian retailers are adapting to economic tensions by highlighting the origin of their products. This involves clear labeling and the promotion of locally sourced goods. The recent tensions between the U.S. and Canada have prompted consumers to shift their purchasing patterns, favoring the goods produced within Canada. The rise of tariffs and their influence on consumer behavior are key. For more insights, read on.
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Canadian Retailers Get Creative amidst US Trade Tensions
April 20, 2025
Trade War Sparks Patriotism in Canadian Grocery Aisles
A trade dispute between the U.S. and Canada has led to some innovative, and perhaps pointed, practices by Canadian retailers. As tariffs impact prices, stores are increasingly highlighting the origin of their products, and consumers are responding with a clear preference for Canadian-made goods.
The “T” is for Tariffs: Retailers Highlight US Imports
- Clear Labeling: Some Canadian retailers are now labeling products imported from the United States.
- Local Pride: Some stores were already labeling locally-made products since tariffs were announced.
- Consumer Response: Empty shelves show consumers are responding with strong preferences for Canadian products.
Canadian retailers are taking a more assertive stance regarding U.S. imports. They’ve moved beyond simply labeling products made in Canada
to specifically identifying American-made products with a warning label: a “T” for “tariffs.”
Did You Know?
The USMCA (United States-Mexico-Canada Agreement) forms the framework for trade relations between the three countries [3]. However, tariffs can still be applied outside the scope of the agreement, leading to the current situation.
Loblaw Companies Ltd.,which operates about 2,400 stores across Canada,announced on March 10 that it planned to roll out the ‘T’ label on U.S.-imported goods that may have been subject to a tariff-related price increase. As the warning labels have been slowly rolled out over the last month, shoppers have noticed and are buying accordingly.
Canadians show Preference for Local Goods
Consumer behavior is shifting.An April 17 Leger poll revealed a significant trend:
76% of Canadians have increased their purchases of locally made and sourced goods in recent weeks, representing the highest number of respondents looking to buy Canadian goods as the market research firm began tracking the behavior in mid-February.
Pro Tip
Look for labels like “Product of Canada” or “Made in Canada” to ensure you are buying locally sourced goods. Support local farmers’ markets and smaller retailers to further boost the Canadian economy.
This surge in patriotism in the grocery aisle follows comments made in mid-March by President Donald Trump about making the 158-year-old nation the 51st US state.
All the grocery stores now have Canadian and American labelled produce — and the Canadian produce is always gone,said Vancouver-based shopper Isabella Zavarise.
zavarise added that it’s not just a preference for Canadian-made goods
; it’s an active avoidance of U.S. imports. And the preference isn’t about saving money:
Everyone I know is shopping local despite how expensive it is.
Tariffs Drive Up Prices
The [2] Canada Border Services Agency (CBSA) is collecting tariffs, in the form of a surtax, of 25% on certain goods imported from the U.S. since March 4,2025.
The Canadian Broadcasting Corporation reported that small grocery stores, in particular, are seeing price increases related to the tariffs being exchanged between the U.S. and Canada. The country’s consumer price index rose 2.3% year over year in March, following an increase of 2.6% in February.
Prices of American imports have skyrocketed. Such as, 100ml of Tropicana orange juice is listed for $13.99 at Metro stores, another Canadian chain.However, even locally-made goods have seen increases, the outlet reported.
Tit-for-Tat Tariffs
The U.S. and canada have been engaged in an escalating trade dispute over tariffs. As of March 13, tariffs of 25% were levied on many Canadian consumer goods and 10% on energy product imports from Canada.
Canada responded by announcing 25% counter-tariffs on U.S. goods [1].
Frequently Asked Questions
- What tariffs are currently in place?
- Canada is imposing 25% tariffs on certain goods imported from the U.S. [2].
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