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Canada Demonstrates Economic Strength Amid Ongoing Tariff Negotiations

Photo credit: www.cnbc.com

A “Shop Canadian” sign is prominently displayed at a supermarket entrance in Vancouver, British Columbia, on March 4, 2025.

Liang Seng | Xinhua News Agency | Getty Images

In response to increasing tensions surrounding trade relations, Canadians are showcasing a heightened sense of nationalism, particularly in light of U.S. President Donald Trump’s aggressive rhetoric regarding tariffs and Canadian sovereignty.

Trump’s proposed 25% tariffs on Canadian imports and his contentious comments suggesting Canada could become an American state have sparked backlash among Canadians, who are now prioritizing local products over American goods. This wave of sentiment has prompted a noticeable shift in consumer behavior, characterized by a collective movement towards domestic purchasing.

“There’s a profound feeling among Canadians that we’ve been betrayed by someone we trusted, which has united people in unexpected ways,” explained Joel Bilt, a professor of economics specializing in international trade at the University of Waterloo in Ontario. “It feels like an attack on our national identity.”

Local grocery stores are actively promoting a “shop Canadian” initiative, utilizing signs and special labels to help shoppers identify domestically produced items. A burgeoning Facebook group dedicated to supporting Canadian-made products has seen its membership double in recent months, reflecting a growing desire to resist American imports as the tariff situation remains fluid.

A recent survey conducted by market research firm Leger highlighted this trend, revealing that over 60% of Canadians reported purchasing fewer American products—both online and in stores. Approximately 71% of respondents indicated that they were buying more Canadian goods, contributing to the economic landscape of the world’s ninth-largest economy.

The Liquor Control Board of Ontario has adopted more drastic measures by prohibiting its members from ordering American alcohol, a move that has caused significant concern among U.S. alcohol producers reliant on the Canadian market. This decision is noteworthy given that the LCBO generates over $1 billion in sales from American liquor annually.

“This situation is more damaging than a tariff can be,” stated Lawson Whiting, CEO of Brown-Forman, the parent company of Jack Daniel’s. “It effectively removes our ability to sell.”

In British Columbia, signs proclaiming “Buy Canadian Instead” have emerged in liquor stores following the withdrawal of the top five U.S. liquor brands from sale, a decision linked to Trump’s proposed tariffs. This action underscores Canadians’ readiness to take economic measures against American goods in a bid to express their dissatisfaction.

In an abrupt response, Trump suggested he might increase tariffs on Canadian steel and aluminum to 50%, but he retracted this stance following discussions with Ford.

Concerns over potential job losses prompted the United Steelworkers union, which represents around 850,000 members across North America, to prepare for a fight against these proposed tariffs. Union President David McCall emphasized the need for collective action to protect jobs on both sides of the border.

Travel Impacts

As the trade discussions continue to evolve, the fallout is palpable in terms of travel. Data indicates that return trips by Canadians driving from the U.S. fell approximately 23% in February compared to the same month last year.

Moreover, the number of Canadians flying back from international destinations also declined, illustrating broader trends that could impact tourism revenue. Air Canada responded by announcing reductions in flight capacity to warmer U.S. destinations, including Florida and Arizona.

Tourism officials in popular U.S. locales like the Wildwoods in New Jersey reported some cancellations from Canadian travelers due to the uncertainty surrounding exchanges and tariffs, though these cancellations have not reached the levels originally feared.

During consumer travel shows in cities like Toronto and Montreal, representatives have noted that Canadians are expressing hesitance about traveling to the U.S. due to the current political climate. However, they are reminded of the enduring welcoming history between the two nations.

“We frequently hear from Canadians that while they appreciate American hospitality and share a love for Americans, they are opting to pause their visits for the time being,” said Ben Rose, marketing director at the Greater Wildwoods Tourism Authority.

Cultural Reflection

The political tension has also permeated Canadian culture, influencing media and public sentiment. Instances of Canadians booing the U.S. national anthem at high-profile sporting events against American teams have garnered attention. Additionally, Canadian actor Mike Myers made headlines during a recent appearance on Saturday Night Live, wearing a shirt proclaiming “Canada is not for sale.”

The recent political climate has propelled Mark Carney, a former central banker, into the role of Prime Minister, succeeding Justin Trudeau—who had previously faced mocking references from Trump regarding his leadership.

Government officials in British Columbia have taken steps to prioritize Canadian-made products by excluding Tesla from certain green-energy initiatives aimed at emphasizing local alternatives, reflecting an ongoing sentiment to support domestic industries. This decision aligns with growing criticism against U.S.-based companies linked to Trump’s administration.

Experts like Bilt suggest that despite the rising nationalism, Canadians’ frustrations are primarily directed at Trump rather than American citizens, indicating that interpersonal relationships across the border remain intact. Nevertheless, there is an occupational caution among Canadian consumers who once readily supported U.S. brands and destinations, hinting at a potential long-term impact on cross-border commerce.

“This kind of public reaction is unprecedented,” Bilt noted. “While Canadians aren’t inherently nationalistic, recent events have struck a deep chord within them.”

Source
www.cnbc.com

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