With the announcement—and subsequent delay—of 25% tariffs by the Trump administration and retaliatory measures by the Canadian government, many Canadians are responding by “voting with their wallets.” As consumers focus on buying more products that are Made in Canada, the Retail and Consumer Packaged Goods (CPG) industries may experience significant shifts.
Field Agent Canada conducted a survey between February 2 and 4 to gauge consumer sentiment on these tariffs. The findings suggest a strong shift in purchasing behaviours across Grocery, Health and Beauty Aids (HABA), and Alcoholic Beverages. More than 80% of respondents stated they would begin checking product labels to determine where items were made, while many indicated a preference for Canadian-made goods or products from countries other than the U.S. For example, some consumers may opt for French wine over California wine.
The report can be found here.
Only about 15% of respondents said they would continue purchasing their favourite brands regardless of tariffs. This could spell trouble for companies that manufacture or grow their products in the U.S.
The impact extends beyond retail purchases. The survey revealed that 29% of Canadians are considering canceling U.S. streaming services such as Netflix, 65% would only consider non-U.S. automobile brands, and 68% have no plans to visit the United States for upcoming vacations. Additionally, 28% of respondents said they would stop shopping at Amazon, and 40% said they would avoid dining at U.S.-based restaurant chains.
These shifts could disrupt supply chains, with slower sales for U.S. products and increased demand for Canadian alternatives. U.S. retailers operating in Canada may need to highlight their support for Canadian manufacturing and employment to maintain consumer trust. Brands that do not clearly indicate their product origins on packaging risk being perceived as American, whether accurate or not.
Canadians are coming together in ways not seen in generations. The spirit of standing up for Canadian values is as ingrained in the culture as beavers and maple syrup.
“However, we need to find a balance,” said Jeff Doucette, General Manager of Field Agent Canada. “Having an ‘all or nothing’ approach to U.S. products will have impacts on the hundreds of thousands of Canadians that rely on U.S. companies to support their families. There is no clear ‘right’ or ‘wrong,’ but it will be fascinating to see how this inflexion point affects the Canadian retail, packaged goods, and foodservice industries in the weeks and months to come.”
