What: Trump's 25% tariff on Canadian goods triggers widespread consumer boycott of US products, with 84% of Canadians pivoting towards domestic brands.

Why it is important: This consumer-driven economic nationalism, supported by recent data showing 62% of consumers concerned about trade policy impacts, signals a fundamental shift in North American retail dynamics that could reshape market strategies.

The implementation of Trump's 25% tariff on Canadian goods has catalysed a significant shift in Canadian consumer behaviour, sparking a powerful "Buy Canadian" movement. Recent data reveals that 84% of Canadians are actively reconsidering their purchasing strategies, demonstrating unprecedented support for homegrown brands. This economic backlash extends beyond product selection, with 34% cancelling US travel plans and 32% reconsidering American-owned streaming services. For emerging designers and independent beauty brands, the tariffs present a complex challenge, potentially straining already tight margins and forcing a rethink of supply chains, pricing strategies, and expansion plans. However, this challenge also presents an opportunity for Canadian brands to reframe domestic production as a distinctive value proposition, emphasising transparency, craftsmanship, and ethical production. The situation particularly impacts those navigating cross-border market dynamics, with some facing potential market exclusion due to increased costs.

IADS Notes: The emergence of this "Buy Canadian" movement aligns with broader market trends identified in recent analyses. As reported in March 2025, 62% of consumers are expressing heightened concern about rising retail prices due to new trade policies, mirroring the 84% of Canadians now actively reconsidering their purchasing strategies. This consumer anxiety is well-founded, as BCG's January 2025 analysis projects that Trump's tariff policies could add USD 640 billion to US import costs, a development that particularly impacts cross-border retail dynamics between Canada and the US. The resulting economic nationalism, exemplified by Canadians cancelling US travel plans and reconsidering American-owned services, represents a significant shift in consumer behaviour that could reshape North American retail patterns.

Trump's tariffs spark "Buy Canadian" movement