A new study has found that younger Canadians have far less trust in American companies than older generations, marking a sharp generational divide that could reshape cross-border retail relationships.
The survey, conducted by Toronto-based digital firm dNOVO, polled over 2,000 Canadians on their trust in a range of industries and countries of origin. Among all age groups, Gen Z respondents rated American companies just 1.37 out of 5 for trust, while Millennials gave them 1.55. Gen X scored slightly higher at 1.95, and Baby Boomers rated them at 2.21—still low, but noticeably more favourable.
Overall, the combined average among Gen Z and Millennials was 1.46 out of 5, underscoring a steep drop in confidence among Canadians under 40.
Younger Canadians are increasingly skeptical of U.S. influence
Ben Treanor, founder and managing director of Break of Dawn, which collaborated on the dNOVO survey, says this erosion of trust is rooted in more than geopolitics. He says it’s cultural.
“Younger generations who maybe have never even traveled to the United States have a particularly negative view just because all they know is what they see on social media and in the news,” said Treanor. “Whether that’s accurate or not, it’s their prerogative to decide. But there’s a clear divide, and it could be experiential.”
Treanor pointed out that older generations of Canadians have had more opportunities to travel across the border, which can soften perceptions. “Baby Boomers and Gen X are probably more likely to have actually traveled to the United States, where Gen Z, with the cost-of-living crisis, aren’t necessarily going on those trips yet,” he said. “They’ve been born into a really rough time, so it makes a lot of sense that they would be jaded from an early age.”
A shifting relationship between neighbours
The survey’s findings come at a time when U.S.-Canada relations remain politically and economically intertwined, even as consumer sentiment grows more guarded. Canada remains the United States’ largest export market, yet Canada posted a merchandise trade surplus of about C$100 billion in 2024.
Treanor said much of the distrust is learned, not inherited. “Add in the threats and tough talk from the current U.S. administration, and that skepticism hardens further,” he noted. “It trickles down to everything. We get bad blood and businesses hurting, and people who might not get to do things that they’ve always wanted to do, just over egos basically.”
What American brands can do to rebuild trust
For American retailers and brands expanding into Canada, the data signals a need for a more transparent and locally aware approach. Treanor advises companies to stay politically neutral and focus on consistent values.
“I think it’s important for leadership in U.S. brands not to take overly political stances or make obscene political donations,” he said. “Companies really have to tread lightly, but they should tread lightly in all directions.”
He added that authenticity and respect for Canadian culture are key. “I’ve seen movements online where people are being more conscious to buy Canadian or buy European. They don’t necessarily want to support tariff policy or politics, so it makes sense that they would shop domestically whenever they have the chance.”
Canadian brands stand to gain from this shift
While trust in American companies declines, Canadian brands could benefit from this generational sentiment. dNOVO’s research suggests that younger Canadians are more willing to reward local businesses that demonstrate transparency, inclusivity, and social responsibility.
Treanor said the momentum toward local consumption is not limited to Canada. “I’ve seen it in Europe as well, where people are being more conscious about buying locally,” he said. “Small changes can have big rippling impacts on certain industries.”
This preference aligns with broader consumer movements emphasizing sustainability, ethical sourcing, and community connection — all areas where Canadian brands can lean into their homegrown advantage.
Implications for cross-border retail strategy
For U.S. retailers operating in Canada, the path forward lies in rebuilding credibility through action, not slogans. That means hiring locally, adapting product assortments to Canadian preferences, and communicating directly with customers through relatable, human voices.
Transparency around data privacy and business practices is also increasingly critical. The dNOVO survey shows Canadians are far less forgiving of perceived dishonesty than of poor service, with misleading information cited as the top reason for eroding trust. In this climate, opaque marketing or corporate missteps can quickly magnify across social media.
Treanor said the solution lies in balancing scale with sincerity. “It’s all about dipping your toe in,” he said. “Older Canadians aren’t rejecting foreign brands, they’re just waiting to see if they can trust them again.”
Building back trust across generations
As younger Canadians shape future consumption patterns, brands hoping to win their loyalty will need to demonstrate authenticity, fairness, and accountability. For American retailers, that may mean localizing strategies and reintroducing themselves to a market that increasingly prizes integrity over image.
At a time when trust has become a differentiator, the message is clear: Canadian consumers, especially the young, expect more from the brands they buy from, and they’re paying close attention to who earns it.
