Amid rising trade and political tensions, Canadian consumers are increasingly turning their backs on American products.
Giancarlo Trimarchi, owner of Vince’s Market, a Canadian grocery chain, has seen the backlash firsthand. “Customers are demanding as much Canadian product as possible and get upset when they see U.S. goods,” he said.
In a move that could escalate the trade standoff further, President Donald Trump recently announced new tariffs of 35% on Canadian goods starting Aug. 1.
“The U.S. tariffs look like they’re going to last for the duration of the Trump administration in one form or another. And, that’s going to keep other countries in a negative mood towards U.S. goods and services,” said Gary Hufbauer, senior fellow at Peterson Institute for International Economics.
A “Buy Canada” movement is also intensifying, with 71% of Canadians saying they plan to buy fewer U.S. goods this year, according to retail data consulting firm dunnhumby.
That pullback is expected to cause a drop in U.S. exports to Canada, particularly in food and alcohol. In 2024, Canada was the U.S.’s second-largest food export market, valued at $28.4 billion, according to the U.S. Department of Agriculture.
Tourism is also feeling the pressure, with foreign tourists canceling their travel plans to America. The loss in revenue from international travelers is expected to cost the U.S. economy $12.5 billion this year, according to the World Travel & Tourism Council.
The boycott sentiment isn’t limited to Canada. European consumers, sharing the same frustrations with U.S. foreign policy, are also rejecting American products. A European Central Bank survey revealed that 44% of Europeans are turning away from U.S. brands. This has contributed to plummeting sales for U.S. companies, especially Tesla, which saw a nearly 28% drop in European sales amid a litany of other factors.
While some hope trade tensions will ease and that things will return to normal, consumer surveys indicate this shift in behavior could have lasting effects on U.S. companies, even after tariffs are resolved.
Watch the video to find out more about the Canadian boycott of American goods and what impact it could have on the U.S. economy.
