Canada’s second-largest supermarket chain, Empire Co. Ltd., has reported significant shifts in consumer behavior as Canadians increasingly boycott American goods. The move follows the imposition of heavy tariffs by U.S. President Donald Trump, which has rattled trade relations between the two countries. CEO Michael Medline stated during the company’s recent earnings call, “American products we are selling as a percentage of our total sales are rapidly dropping.” This drop signals growing discontent among Canadian consumers who prefer local products over U.S. imports.
Empire, which owns grocery chains such as Sobeys and Safeway, usually sourced around 12% of its products from the U.S. by dollar value. Medline revealed this figure is declining as Canadian consumers rally for homegrown goods. “We have heard loud and clear from our customers they want Canadian products,” he noted. Not only is the company witnessing this shift within its sales figures, but suppliers are also adjusting their operations accordingly. Notably, Swiss chocolatier Lindt announced its decision to entirely supply the Canadian market from Europe, abandoning the previous model where 50% of its products came from the U.S.
With empire reporting annual revenues of $31 billion for the period ending February 1, it appears the desire for domestic products is translating to sales growth for Canadian items. Government pressure has also mounted to buy local, as outgoing Prime Minister Justin Trudeau has been vocal encouraging Canadians to favor domestic goods. Tariffs imposed by Trump, averaging 25% on various Canadian products, along with counter-tariffs from Canada against $60 billion of U.S. goods, have escalated the situation.
On March 13, Empire's stock price dropped 2.6% to $43.30. COO Pierre St-Laurent echoed the sentiment of the Canadian populace when he said, “I don’t think people are interested to pay more, or to pay 25% for U.S. products right now.” This public response highlights the palpable shift within Canada’s economic climate as citizens adapt their purchasing habits to the geopolitical tensions
Further complicate matters, statistics released by Statistics Canada show Canadians are pulling back on travel to the U.S. For February, reports indicate road trips to the U.S. declined by 23%, the second consecutive month of such downturns since March 2021. Flight Centre Travel Group revealed leisure bookings to the U.S. dropped by 40% year-over-year. A survey conducted by Leger indicated nearly half of Canadians are less likely to visit the U.S. this year, with six out of ten saying they plan to vacation domestically instead.
Trudeau’s bullish push for domestic tourism coincides with Trump’s executive orders levying 25% tariffs on imports as well as significant tariffs on steel and aluminum products. Rachel J.C. Fu, director at the University of Florida’s tourism institute, concluded, “The 25% tariffs likely increased economic tension, influencing Canadian consumer sentiment and travel choices.” If the current trends persist, U.S. tourism losses could amount to as much as $2.1 billion, with 14,000 job losses as evidence of the adverse trickle-down effects.
This growing consumer dissent against American products has not gone unnoticed across the Atlantic, where grassroots boycott movements are gaining traction and reflecting sentiment for similar discontent. Several consumer groups have amassed tens of thousands of members on Facebook, including the Swedish group “Bojkotta varor fran USA,” which aims to protect democracy and self-determination. A sizeable group has formed in Canada with similar objectives.
Germany also sees this trend echoed, with 64% of consumers preferring to avoid U.S. products. A lecturer at the University of Waikato, Garritt van Dyk, states consumer boycotts are becoming popular across political lines. The sentiment seems guided by many seeking to exercise agency outside traditional elections.
U.S. products particularly seen as closely linked to Trump’s policies, such as Tesla, have witnessed significant downturns. Sales dropped by 50% across Europe, linked to his tariffs and consumer backlash against his administration. Meanwhile, Ontario Premier Doug Ford has taken strides against American goods, recently ceasing orders for U.S.-made products, reflecting the sentiment of unified defiance against perceived American transgressions.
Trudeau’s administration is encountering pressure from rising anti-American sentiment, contributing to fluctuations within Canadian politics. The Liberal Party, historically led by Trudeau, is currently experiencing rejuvenation under new leader Mark Carney, as poll numbers shift dramatically from trailing the Conservative Party to leading many polls. This unexpected pivot is largely attributed to public perceptions of political leadership acting firmly against Trump-inspired pressures.
Looking forward, the bilateral relationships between Canada and the U.S. face uncertain prospects. The situation could prompt long-term reorientations within trade policies, with Canadians openly questioning economic reliance on their southern neighbor as U.S. behavior increasingly appears aggressive. The friction sets the stage for October elections, where Canadians may seek leaders perceived as capable of standing against U.S. bullying.
The eventual outcomes depend heavily on how both nations negotiate their respective stances; as the trade disputes amplify tensions, economic decisions will likely shape consumers’ choices for years to come. Public opinion is poised to significantly influence the political discourse, nurturing movements favoring Canadian products, as sentiments against American goods continue to rise amid the economic strife.