Canadian shoppers are increasingly shunning American goods following the escalation of the trade dispute between Ottawa and Washington. Against the backdrop of the ‘Buy Canadian’ movement, supermarkets are labelling local products more clearly, increasing their purchases within Canada and establishing supply chains from Europe, Africa and Latin America. Reuters reports that these changes may persist even after a possible resolution to the dispute.
Briefly about the main points
- The ‘Buy Canadian’ movement has gained momentum following the breakdown of talks between Ottawa and Washington.
- Vince’s Market has increased the proportion of fresh Canadian produce to around 90%.
- The US has lost a share of the Canadian market for imported fresh vegetables.
- Retail chains are sourcing more products from Europe, Africa and Latin America.
- The Canadian Government plans to invest C$3 billion in greenhouses and vertical farms.
Shoppers are demanding greater clarity regarding the origin of goods
The «Buy Canadian» movement began to gain momentum last year, when the US President Donald Trump introduced tariffs on Canadian goods. Following a new escalation of the conflict and the breakdown of negotiations, the campaign has become noticeably more intense: shoppers are checking labels and complaining to shops about American goods on the shelves.
President of the independent Vince’s Market chain Giancarlo Trimarchi He explained that, following angry letters and comments on social media, he had started explaining the origin of his product range to customers on Facebook. In four shops in the Greater Toronto Area, around 90% of fresh produce is now sourced from Canada; strawberries from the US have been replaced with berries from Quebec.
Loblaw, the country’s largest supermarket chain, reintroduced large signs featuring a maple leaf in its fresh produce sections in August. It has also reinstated special labelling for products affected by tariffs to make it easier to find Canadian alternatives. Metro, the third-largest chain, has stated that it will give preference to local producers.
The US’s share of vegetable imports is falling, but dependence remains
Canada is one of the world’s largest importers of fresh vegetables, and the US has traditionally been its main supplier. In July, the US share of these imports stood at 62.6%, whilst in July 2023 it was approximately 69%, according to government data.
At the same time, more than half of the fruit imported into Canada still comes from the US. It is difficult to replace US supplies at short notice due to the proximity of the markets, the well-developed logistics infrastructure and the seasonal nature of Canadian agriculture.
Retail chains are developing new procurement channels
Owner: Mike Dean, Local Grocer Gordon Dean He reported that his shops in Ontario and Quebec have significantly increased their purchases of produce from Spain, Brazil and Honduras. Other retailers are also sourcing fruit and vegetables from Morocco and South Africa.
According to Dean, now that new supply channels have been established, retailers are in no hurry to return to American suppliers. Diversified sourcing could mean that American manufacturers face a long-term loss of some contracts and customers, even if the tariffs are lifted.
The origin of goods has become a criterion for procurement and public policy
For some shoppers, choosing which products to buy has become a political statement. A programmer from Toronto John Ambard He explained that he not only reads the labels but also searches online for information about the brand owners in order to support Canadian businesses. For retailers, the country of origin has become an additional criterion alongside price and quality.
Canada plans to invest around C$3 billion in modern greenhouses and vertical farms over the next ten years. The government hopes to boost year-round domestic vegetable production, reduce reliance on imports and curb food inflation, which is among the highest in the G7.
The US’s price advantage could bring some goods back onto Canadian shelves
American goods are often cheaper due to shorter transport distances, the scale of production and well-established logistics. Regulatory differences between Canadian provinces sometimes mean that it is easier for a shop in Ontario to import goods from the US than from another Canadian province.
Professor of Food and Agricultural Economics at the University of Guelph Mike von Massou believes that, in the current situation, nationalism is, to some extent, taking precedence over economic logic. If relations improve, cheaper American products could regain some ground. Trump said on Saturday in Dublin that Canada is seeking a trade deal with the US and that an agreement could be reached «quite soon», whilst calling on Ottawa to remove tariffs.
