Amid escalating trade tensions between Canada and the United States, a new survey reveals that Canadian consumers are making significant shifts in their shopping habits. The latest Trump Tariffs Tracking Report from Leger indicates that two-thirds of Canadians have actively reduced purchases of American-made products, both in-store (67%) and online (63%), in response to tariffs imposed by President Donald Trump’s administration.
Furthermore, 70% of Canadians report increasing their purchases of locally made Canadian goods, signaling a surge in economic nationalism as consumers aim to counter the impact of tariffs on imports.
Rising Economic Concerns Among Canadians
The report highlights that 28% of Canadians now consider U.S. tariffs and trade-related issues the most important challenge facing the country, surpassing concerns about inflation (21%), healthcare (11%), and housing affordability (11%). This reflects the growing anxiety over economic repercussions tied to cross-border trade.
Additionally, 54% of Canadians believe the country is already in a recession, a sentiment that has ticked up from the previous week. Economic instability is also evident in consumer sentiment, with 44% of Canadians reporting that they are living paycheck to paycheck.
Tariffs Impact Retail Spending Patterns
The impact of tariffs on consumer purchasing decisions is reshaping the Canadian retail sector. The Leger survey found that:
- 67% of Canadians have cut back on purchasing American-made products in physical stores.
- 63% have reduced spending on U.S. products purchased online.
- 56% are spending less on goods from American e-commerce giant Amazon.
- 54% have decreased visits to U.S.-based fast food chains such as McDonald’s, Starbucks, and Burger King.
- 47% are spending less at American retail chains, including Walmart, Costco, and Winners.
This shift in spending habits could significantly impact U.S.-based brands operating in Canada, forcing them to reconsider pricing strategies, supply chain solutions, and marketing approaches.
Growing Support for Government Retaliation
Public opinion is firmly in favour of retaliatory measures against the U.S. tariffs. The report shows that 70% of Canadians support the federal government’s strategy of matching American tariffs dollar-for-dollar, with 45% expressing strong support for such actions.
Concern over U.S. trade tactics also extends beyond tariffs. A striking 82% of Canadians fear that President Trump may use economic pressure—such as tariffs and trade sanctions—to push Canada toward a closer political and economic alignment with the United States.
Consumers’ Response Beyond Retail: Travel and Streaming Services
The economic dispute is also influencing travel and entertainment choices. According to the survey:
- 16% of Canadians who had planned trips to the U.S. have now canceled them.
- 15% have canceled subscriptions to American entertainment platforms, such as Netflix, Disney+, and Amazon Prime Video.
These trends suggest that the trade war is not just altering retail purchases but also shaping broader consumer behaviour, as Canadians increasingly look for domestic alternatives in multiple spending categories.
Implications for Canadian Retailers
The shift away from U.S. goods presents an opportunity for Canadian brands and retailers to capitalize on heightened consumer interest in domestic products. With 70% of Canadians actively seeking Canadian-made alternatives, businesses that emphasize local sourcing and transparent supply chains could see increased support.
Retailers and manufacturers may also need to adjust supply chains to navigate the ongoing tariff situation, potentially seeking alternative import partners beyond the U.S. market to stabilize costs and ensure competitive pricing.
Looking Ahead: What’s Next for Canadian Retail?
As the tariff conflict unfolds, retailers and industry stakeholders must monitor consumer sentiment closely. With economic uncertainty rising and consumers shifting away from U.S. brands, the Canadian retail landscape could see permanent changes in shopping behaviours that extend beyond the immediate trade dispute.
For Canadian businesses, adapting to this shifting landscape by reinforcing domestic production, localized marketing efforts, and strong supply chain resilience will be key to weathering the storm and thriving in a new era of consumer nationalism.
