Canadian retailers pivot to local products amidst trade tensions
Canadian stores are increasingly turning away from American goods as a result of Donald Trump's policies. The "Buy Canadian" trend is gaining popularity and influencing trade between the countries.
What do you need to know?
- Canadian stores are turning away from American goods: In response to Donald Trump's policies, Canadian retail chains are increasingly choosing local products.
- "Buy Canadian" trend: It is gaining popularity and causing concern among American companies exporting to Canada.
- Impact on American companies: Firms like Parasol Co and Brown-Forman are feeling the effects of changing consumer sentiments in Canada.
The dire consequences of Trump's policies
Canadian stores, in response to Donald Trump's policies, are increasingly turning away from American goods. The "buy Canadian" trend is gaining momentum, raising concerns among American companies. Jessica Hung, president of Parasol Co, stated that a distributor decided not to introduce their products to Canadian stores due to "growing anti-American sentiment".
These changes also affect other industries. Brown-Forman, the producer of Jack Daniel’s whiskey, described the removal of American bourbon from Canadian stores as worse than the Canadian retaliatory tariffs. Similar issues are reported by companies exporting citrus fruits from California, which are experiencing order cancellations by Canadian retail chains.
Canadian stores are changing suppliers
Changes on Canadian shelves result from Donald Trump's policies, which imposed 25 percent tariffs on steel and aluminium and threatened additional tariffs on other products. Daniel Bukowski from GT's Living Foods noted that Canadian retailers, including Walmart, are ordering fewer products due to uncertainty related to tariffs.
Canadians are increasingly choosing local products, influencing American companies' decisions regarding expansion north. Mark Crames, CEO of Demeter Fragrances, observed that Canadians have turned away from American products, prompting the company to abandon its expansion plans.
Decisive reaction in Canada
Changes in trade between the USA and Canada are significant, as in 2024, Canada imported goods worth nearly 350 billion dollars (324 billion euros) from the USA. Mark Carney, the head of the Canadian government, warned of tough times ahead, stating that the former relationship with the United States is over.
The new trade situation has resulted from Donald Trump's comments regarding the annexation of Canada to the USA and the imposition of tariffs on imported products. In reaction, Canadian consumers are increasingly avoiding "made in USA" products, affecting trade relations between the countries.
