Trump's tariffs fuel Canadian consumer shift away from US goods
By Siddharth Cavale, Nivedita Balu and Jessica DiNapoliMarch 31, 202512:50 PM EDT Reuters News
Canadian shoppers increasingly seek locally made products
Some US citrus and beverage exports to Canada face order cancellations
TORONTO/NEW YORK, March 31 (Reuters) - The "Buy Canadian" movement is sending new ripples of concern through the executive offices of U.S.-based, consumer companies that banked on selling their products on Canadian retail shelves.
California-based diaper maker Parasol Co had been working since January with a distributor to expand the sale of its diapers and baby wipes to new retailers in Canada, including convenience stores, CEO Jessica Hung said.
But, in early March the distributor, halted work on the deal, she said, because of growing anti-American sentiment in Canada.
"They were instructed by a retailer to pause any American, brand launch," Hung said, referring to the distributor. "They told us they would re-evaluate when market conditions allow."
"That's the kind of disruption we would never expect,” said Hung. "I never heard of this happening until now. It’s definitely quite a bit of headwinds."
A dramatic reshuffling of Canada's retail shelves illustrates the impact of patriotic consumerism in Canada, which imported nearly $350 billion of products from the United States in 2024, making it its largest trading partner.
Trump is the Source of the Canadian Anti-American Product Sentiment
U.S. President Donald Trump's jabs to annex Canada, the imposition of a 25% levy on steel and aluminum from Canada and threats to tax all other imports from the country have prompted a rallying cry among many Canadian shoppers to eschew U.S.-made products.
Shopper Rebecca Asselin, a mom and health insurance professional from Saint-Jean-sur-Richelieu, Quebec, has been using social media to share her story about her search for Canadian products.
She told Reuters she recently switched to purchasing Royale diapers, made by Irving Personal Care of Moncton, New Brunswick, one of the only manufacturers of baby diapers and training pants in Canada. "I never really considered before where diapers were made, but apparently, Canadian-made diapers are kind of hard to come by. That's a big change for us."
Irving Personal Care said retailers from all over Canada have been reaching out to discuss increasing distribution. "As the only branded baby diaper made in Canada, our weekly shipments have quadrupled," Jason McAllister, Irving Personal Care's vice president of business operations, told Reuters.
DRINKS AND CITRUS EXPORTS
The Buy Canadian movement is not just hampering one diaper business but also drinks and citrus fruit from the U.S., companies say. In early March, Jack Daniel's maker Brown Forman (BFb.N), called the removal of American bourbon and whiskey from Canadian liquor stores worse than Canada's retaliatory tariffs and a disproportionate response to Trump’s levies.
A source familiar with California's citrus fruit exports told Reuters in early March that Canadian retailers have cancelled their orders.
Demeter Fragrances, a small family-owned and operated business that manufactures perfumes in Pennsylvania, said it halted its plan to expand into Canada in 2025. "Canadian sentiment has turned away from American product," said Mark Crames, Demeter Fragrances' chief executive officer. "Consequently, it seems like a wasted effort and, we simply scrapped the initiative."
Canadian Products Have Better Opportunity in Canada Now
Grime Eater Products Limited, a Canadian manufacturer of Response and Luster Sheen hand cleaning products, had been trying unsuccessfully for years to get Canadian Tire (CTCa.TO), to stock its products, according to Vice President Tracy Hayes. With the Buy Canadian movement spreading, she said, "The future looks promising." That's because she learned from a buyer at Canadian Tire, the operator of 504 stores in Canada, that it was considering reducing its offerings of her company's U.S. rival, Fast Orange, a hand cleaner brand manufactured by Permatex.
Reporting by Siddharth Cavale in New York and Nivedita Balu in Toronto; additional reporting by Jessica DiNapoli in New York; Editing by Aurora Ellis
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