‘Buy Canadian’ Movement Is Costing US Companies

Canadian companies boycotting American goods in response to Donald Trump’s tariffs is impacting some American businesses.

Newsweek contacted the Department of Commerce by email for comment.

Why It Matters

Since assuming office for the second time, Trump has made tariffs a key pillar of his economic offering, positing that they will protect the domestic economy and enable the U.S. to haggle for better trade terms.

Trump imposed tariffs on Canada, Mexico and China, including a 25 percent tariff on Canadian imports and a 10 percent tariff on Canadian energy imports. In March, he said he will place 25 percent tariffs on auto imports from April 3.

VANCOUVER, CANADA – MARCH 28: Products on the shelves are labelled with the Canadian flag tags at a supermarket on March 28, 2025 in Vancouver, Canada.

Photo by VCG/VCG via AP

But this has sparked a backlash from countries like Canada, fuelling concerns about a trade war. Some Canadian customers are boycotting American products after Prime Minister Justin Trudeau called for citizens to “buy Canadian” in response to the tariffs.

Canada has also barred Tesla vehicles from being eligible for the county’s electric vehicle rebate because of the tariffs and is poised to impose retaliatory tariffs on the U.S.

What To Know

Businesses across various sectors have curtailed operations in Canada. Jessica Hung, the CEO of California-based diaper maker Parasol Co, told Reuters that a deal with a distributor to expand the sale of diapers and baby wipes to new retailers in Canada was cancelled by the distributor in March.

Californian drinks brand GT’s Living Foods told Reuters that retailers including Walmart have been placing fewer product orders because of uncertainties created by tariffs.

Meanwhile, Demeter Fragrances, a small Pennsylvania business that manufactures perfumes said it cancelled its plan to expand into Canada in 2025, calling it “a wasted effort.”

“Canadian sentiment has turned away from American product,” Mark Crames, Demeter Fragrances’ chief executive officer told Reuters. “Consequently, it seems like a wasted effort and, we simply scrapped the initiative.”

The disruption of American companies has inversely positively affected Canadian companies in some cases. For instance, Canadian diaper brand Irving Personal Care’s vice president of business operations Jason McAllister told Reuters their weekly shipments of diapers have quadrupled.

Consumers are also shunning American products. According to a recent poll of 3,310 Canadians by the Angus Reid Institute between February 16 and 18, 85 percent said they were planning to replace or had already replaced U.S. products when shopping.

What People Are Saying

Hung said: “They [the distributor] were instructed by a retailer to pause any American brand launch. They told us they would re-evaluate when market conditions allow.”

“That’s the kind of disruption we would never expect. I never heard of this happening until now. It’s definitely quite a bit of headwinds.”

Leah Russell, the manager of a pub in Toronto, told the BBC in March: “I’m glad that we’re getting rid of American products and supporting local businesses.”

Walmart said it “will continue to work closely with suppliers to find the best way forward during these uncertain times.”