A new survey conducted by Leger between May 2 and May 4, 2025, reveals mounting concerns among Canadians and Americans regarding rising consumer prices, largely attributed to the ongoing trade tensions and tariffs imposed under the Trump administration. The survey provides insights from 1,626 Canadian and 1,014 American respondents, offering a detailed snapshot of shifting consumer sentiment.
An overwhelming 78% of Canadians surveyed believe that consumer prices have increased in recent weeks, marking a four-percentage-point increase from the prior wave of the study. Regional differences were evident, with Quebec respondents most likely to report rising prices at 85%, followed by Ontario at 78%. The perception was lowest in Alberta, where 70% agreed prices had increased. Both men and women shared similar views, with women slightly more inclined to note price hikes (81%) compared to men (76%).
At the same time, a growing number of Canadians are turning to locally made products, with 73% reporting an increase in purchases of Canadian-made goods. The trend was strongest among voters aligned with the Liberal Party (86%) and Bloc Quebecois (85%), compared to 62% among Conservative Party supporters.
Additionally, Canadian consumers are taking tangible steps to reduce their dependence on U.S. goods. The study found 67% have decreased their in-store purchases of American products, 63% have reduced online purchases, and 54% have bought fewer products in general on the Amazon platform. Notably, 50% reported cutting back on visits to American fast-food chains, and 45% said they had reduced spending at American-owned retail chains.
Americans Also Feel the Squeeze
South of the border, 73% of Americans reported noticing increased prices, up four percentage points since the previous survey wave. Political affiliation played a noticeable role: 88% of Democrats perceived price hikes, compared to just 54% of Republicans. Regionally, price perception was consistently high across the U.S., ranging from 67% in the Midwest to 75% in the Northeast and South.
The impact of tariffs is not only being felt at the checkout counter. Job security fears are climbing sharply among American workers. Forty-six percent of employed Americans are worried about losing their jobs within the next year, a five-percentage-point increase. Of those, 22% are very concerned. This contrasts with Canadian workers, where 38% expressed concern.
Support and Concern Over Tariff Measures
Despite the challenges, Canadians broadly support their government’s response to U.S. tariffs. The survey showed that 69% of Canadians support a dollar-for-dollar retaliatory approach, with strong backing from Bloc Quebecois and Liberal voters. Conversely, 18% of Canadians oppose retaliatory tariffs.
However, Canadians are deeply pessimistic about the potential economic fallout. A staggering 83% believe Trump administration tariffs will negatively affect Canada’s economy, while only 8% believe the impact could be positive.
In the United States, opinions on the effects of tariffs on the domestic economy are more divided. Fifty-two percent of Americans view the tariffs as having a negative impact, while 29% believe they will benefit the U.S. economy.
Personal Financial Impact Looms Large
The perception of personal financial strain is acute. In Canada, 89% of respondents believe the tariffs will affect their personal finances, with 28% forecasting a major impact. American respondents were slightly less concerned, though still high, with 82% expecting some level of personal financial impact.
Living paycheque to paycheque remains a pressing issue. In Canada, 44% of respondents reported this reality, with higher rates in Manitoba/Saskatchewan (54%) and Alberta (50%). In the U.S., the figure rose to 55%, with especially high concern in the South and West regions.
Economic Fears Mount Amid Uncertainty
Beyond immediate financial worries, long-term fears about the overall health of the economy are intensifying. Half of Canadian respondents believe the country is already in a recession, a perception that is particularly acute in Ontario (55%) and among Canadians aged 35 to 54 (56%). This economic pessimism also crosses into the United States, where 52% of Americans share the belief that the U.S. economy is in recession. Notably, the political divide is stark: 70% of Democrats believe the U.S. is in recession compared to just 34% of Republicans.
Adding to the unease, job security concerns are escalating. In Canada, 38% of employed respondents expressed worry about potential job loss, with 13% stating they are very concerned. American workers expressed even higher levels of anxiety, with 46% fearing job loss and over one-fifth indicating severe concern.
These figures reflect an atmosphere of heightened economic vulnerability on both sides of the border. Consumers and workers alike are bracing for potential economic headwinds, with many adjusting their spending behaviours and contingency plans accordingly. As inflationary pressures persist and the tariff dispute shows no immediate resolution, the outlook remains clouded by caution and a lack of confidence in economic stability.
Conclusion
As tariffs and trade tensions continue to escalate, consumers on both sides of the border are feeling the pressure in their wallets and their confidence in the broader economy. The data suggests that Canadians, in particular, are actively shifting their buying habits away from American products and toward domestic alternatives. With price perceptions and job security concerns rising, this evolving landscape may significantly alter the retail and economic environment in both nations.
