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Trade War Impact: Canadian Consumers Opt for Local Over U.S.

My beloved tradition of relishing Friday night pizza over Tom Gore’s wine came to an abrupt halt around the time the trade war between Donald Trump and Canada ignited. The disconnection was imposed, yet unobjectionable. Tom was my top-pick for wine until the federal and provincial government intervened, reacting to the enforced tariff on U.S. imports from Canada, and removed it from the liquor store racks. The collateral noise following the incident has been overwhelming so much so that maintaining a tab on everything seems almost impossible. The only certainty is Tom and his California brethren’s ongoing exile, but the current alternatives are adequate enough that I don’t find myself pining for them.

Interestingly, I’m not the solitary case. According to certain figures, U.S. wine sales to Canada have plummeted by a striking 94 percent, whereas Canadian alcohol sales have surged. This has likely been the most evident repercussion of our cumulative disillusionment with our primary trade collaborator. Early upon this chaos, an Angus Reid poll showcased how four-fifths of Canadians were escalating their purchase of Canadian goods as a counter-strategy to Trump’s tariff schemes.

Of this polled group, 60 percent confessed to the active boycott of U.S. commodities. However, these statistics were gathered in February when Canadians still felt justified in jeering the American national anthem during hockey tournaments. Thankfully, that sentiment has since subsided. It is anticipated that Canada’s U.S. reticence will gradually diminish now that Trump’s focus has moved past making Canada the 51st U.S. state to other issues.

However, the recently published Ipsos poll reveals a globally felt reluctance to purchase American products. Less than half of those surveyed from 29 countries declared their likeliness to buy a U.S. manufactured item. This poll revealed that a massive 63 percent of Canadians claim a low likelihood of acquiring an American made product.

Items such as food and beverages, which allow consumers to express their sentiments monetarily, comfortably topped the roster. Every trip to the grocery store serves as an opportunity to snub Trump’s policies. Given this situation, it’s hardly astonishing to anyone (except perhaps the U.S. government) that the U.S. agricultural trade deficit is growing rather than diminishing, contrary to claims made when taxation policies were introduced, along with a stance on immigrant workers and tourist detention.

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Publication of the USDA’s quarterly trade report this month encountered delays and edits, largely due to authors attributing decreased demand for U.S. agricultural goods to tariffs and the ‘buy Canadian’ movement in their initial draft. The revised report projects a US$49.5 billion trade shortfall for the fiscal year 2025, an upswing of US$500 million. This showcases the negative consequences of devaluing your foremost consumers.

Nevertheless, as Canadians, we must remember to tread carefully while trying to unwind the complex snarl of our present trading landscape. It is invariably a wise move to favor local products. Even if it pinches the wallet slightly, reinforcing local providers and businesses recirculates our hard-earned money within our communities, creating employment and facilitating economic growth.

Our farmers undoubtedly appreciate this form of ethical and financial backing. However, it’s essential to keep in mind that one of Canada’s prime attributes as a country is its reputation as an international supplier of food commodities. More than half of the produce from our farmers ends up on international plates, either directly or otherwise.

Despite our growing facial disdain for our southern neighbor, the U.S. remains our biggest trade ally. U.S. sources account for over half of Canada’s agri-food imports, and simultaneously, 60% of our agri-food exports set course for U.S. shores. Both Canadian and U.S. food industries heavily rely on this mutual trade.

For this reason, sectors committing to exports have constantly voiced their support for a rule-driven trade system, and resistance against policies that excessively guard access to domestic markets. Trade, ultimately, is a two-way passage.

As we usher in another Canada Day, it is expressive of our national pride to choose Canadian goods for our celebrations. Our individual actions do substantially contribute to this sentiment. But, does supporting local mean boycotting foreign? It is a decision we all need to ponder over.