A growing consumer push to buy domestic goods and boycott U.S. products is actively reshaping supermarket shelves across Canada, forcing grocers to improve country-of-origin labeling and secure new sources of supply, according to Reuters. In Ontario, Giancarlo Trimarchi, president of independent grocer Vince’s Market, turned to Facebook to show customers that most produce on his stores’ shelves is Canadian after receiving angry emails and comments about stocking U.S. produce.
Consumer Boycotts and Labeling Changes Remake Canadian Supermarkets
Trade talks between the U.S. and Canada broke down on August 21, spurring a new round of tariffs and counter-tariffs. Trimarchi noted that the consumer movement is significantly more aggressive than last year, with his four stores spread across the Greater Toronto Area now stocking about 90% Canadian produce.
Trade War Escalation and Retaliatory Tariffs
In late August, tensions between the U.S. and Canada spiked after negotiations failed to head off threatened 50 percent tariffs by U.S. President Donald Trump on nearly $20 billion worth of Canadian products, including machinery, textiles, and hockey sticks. Canadian Prime Minister Mark Carney later accused the U.S. of inserting last-minute demands into the negotiations, including terms that were uneconomic, unfair, and undermined net benefits for Canada. The U.S. tariffs took effect on August 22, according to Aljazeera.
In response, Canada imposed a new round of retaliatory tariffs of between 15 and 50 percent on roughly $20 billion worth of U.S. imports. Carney explained that the measures were a dollar-for-dollar response targeting U.S. products ranging from steel and aluminum to dairy, appliances, clothing, and cosmetics.
Public Sentiment and Nationalist Sentiments
The trade friction has ignited a surge of nationalism across the country. Margaret Chapman, chief operating officer at market research company Narrative Research, noted that her firm has tracked Canadians’ attitudes toward buying domestic products for roughly a year and a half, describing the sentiment as very strong, ongoing, and likely set to last. Polling data from ipsos.com indicated that by late January and early February, two-thirds of people in Canada said they would avoid U.S.-made goods and a similar proportion stated they would avoid traveling south of the border for the duration of Trump’s term.
Consumers like Mateus Gujrel in downtown Toronto have looked for small red maple leaves dotting grocery aisles as a quick sign of Canadian-made goods. Meanwhile, economists and advisory firms such as Oxford Economics have estimated that businesses will bear at least half the cost of new counter-tariffs, while households will bear about 20 percent through higher prices.
Building a More Self-Reliant Food System
Canada’s harsh winters present a challenge for fresh produce, leading grocers to traditionally rely on greenhouses, stocked root vegetables, or cost-effective imports from regions like Morocco, South Africa, Spain, Brazil, and Honduras. However, the shift in sentiment is prompting grocers to explore local suppliers while the federal government invests in a more self-reliant food system.
Ottawa is spending about C$3 billion over a decade on greenhouses and vertical farms to increase production during harsh winter months and lower food inflation, which remains among the highest in the Group of Seven developed nations.
