As talk of U.S. tariffs heat up, something else is quietly bubbling across Canada: a shift in consumer behaviour that could reshape the fast-moving consumer goods landscape.
In the face of growing economic uncertainty and political tensions, a clear message is emerging from Canadian households: support homegrown products or go without, according to a NielsenIQ (NIQ) recent report – Tariffs, Tensions, and the Rise of the “Buy Canadian” Consumer.
“Retailers and brands, take note—this is more than a moment. It’s a mindset. And it’s reshaping what loyalty, value, and national identity look like in the Canadian aisle,” it said.
“The “Buy Canadian” movement is a growing consumer-led shift toward prioritizing domestically made products over imported alternatives—especially those from the U.S. Sparked by political tensions, trade disputes, and rising tariffs, the movement reflects a broader desire among Canadians to support their local economy, protect domestic jobs, and assert national pride through their purchasing decisions. And this movement isn’t anything to scoff at.
“A new NIQ study reveals that nearly half of Canadian consumers are taking a stand. From boycotting U.S.-made goods to choosing Canadian products even when they’re not the easiest or cheapest option, shoppers are putting their wallets where their values are. This sentiment is influencing everything from food and beverage categories to household goods, prompting both retailers and manufacturers to rethink their positioning in a climate where Canadian-made has become a competitive advantage.”
“Buy Canadian” may be more than just talk, said the report.
“This behavioral shift is starting to show up in self-reported shopping preferences—particularly in categories like beer, BBQ sauce, sugar substitutes, and low-alcohol beverages—areas that are important to Canadian Loyalists. Meanwhile, U.S. brands are seeing heightened risk as 45% of consumers are either Canadian Loyalists or American Good Avoiders. This is especially true in categories like wine, backache treatments, and processed cheese spreads, particularly among American Goods Avoiders, who are more likely to live in Quebec and skews older. This group has the highest average monthly spend of all which presents significant risk to U.S. products,” it said.
In the report, Made in Canada: How are Canadians responding to U.S. Tariffs?, NIQ found:
- Majority Awareness: Most Canadians are aware of the potential tariffs that may be imposed by the U.S. government.
- Boycott Movement: Many Canadians state they will boycott U.S.-made products, refusing to purchase them regardless of availability or price.
- Impact Perception: 92% of Canadians believe tariffs will negatively impact daily life in Canada.
- Product Identification: Are Canadians finding it easy to identify “Made in Canada” products on the shelf? What are the potential implications?
- Store Switching: A segment of Canadians is ready to switch to stores that make it easier to find Canadian products
“What matters is how they vote with their wallets. Some are going to say they’re not going to buy American products or they’re going to boycott them… At the end of the day… we see it in the stores. We see the way they’re behaving,” said Mike Ljubicic, Managing Director of NielsenIQ Canada.
“Those people that are saying they are going to avoid or be a little bit more aware of what they’re buying and looking at things that are Product of Canada or Made in Canada… they are voting with their wallets.”
He noted visible shifts in consumer behaviour across stores: “You probably saw yourself as you’re shopping—there’s people looking at apps, people looking at products in the stores.”
The movement is not limited to consumers. Major retailers and brands are leaning into the trend with “Buy Canadian” signage and product labeling.
And companies are taking advantage of that. You walk into a Safeway and there are big signs to Buy Canadian. Loblaw has products marked with a T to identify tariffs.
“I don’t think it’s a blip in time. I think it’s something that’s going to last. Now what the magnitude of it will be, I’m not sure,” he said. “But I think it’s just adding to a snowball that already started.”
Prior to COVID, consumer behaviour was cyclical—shifting toward discount and private label during tough times, then swinging back as conditions improved. But that pattern is changing.
“What we’re seeing though in the last four or five years is consumers just have less money in their wallets,” explained Ljubicic. “Everything’s gone up—not just food. And people are just being more frugal with their money.”
Retailers have responded accordingly, expanding discount banners. “They’ve added well over 60 stores in those footprints in the last 18 months.”
Notably, 50% of volume in Canada is now sold on promotion—double that of the U.S.
Even more surprising? “The highest income households in Canada are growing penetration and baskets faster at those discount outlets than anyone else,” said Ljubicic. “That’s telling me that even people with the money are actually becoming more frugal.”
Discount’s rise is more than a phase. “In 2008, discount was one-third of the market in Canada. Conventional was two-thirds. Today, they’re 50/50—and discount’s going to tip the scale. It’s not going to revert back.”
Tariffs, then, are only one part of a broader shift in consumer mindset—toward frugality, local products, and price-conscious loyalty.
“It might be the opportunity where we’re going to see some Canadian brands emerge, local companies emerge,” said Ljubicic. “And if they can stay price-competitive, I think people will continue to vote and support that moving forward.”
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