British Columbians continue to ‘Buy Canadian,’ but for how long?

It's been just over a year since the trade war with the U.S. prompted a shop local movement in B.C. and across Canada.

Over the last year, many British Columbians have been searching labels to ensure the products they buy are made in Canada, or at least not in the U.S., as they attempt to boycott American products.

The non-verbal political statement has led to a 40-per-cent drop in demand for American products, according to data from the Canadian Federation of Independent Business (CFIB), with 90 per cent of Canadians saying they’re looking to shop local.

“But only about 15 per cent actually spend their money at small businesses,” said Kalith Nanayakkara, a CFIB senior policy analyst.

For every dollar spent at a local business, 66 cents stays within in the local economy, Nanayakkara explained. In comparison, he says, only about 11 cents of a buck spent at a big box store stays local.

The CFIB is calling on governments to remove red tape and lower taxes to allow small, independent businesses to compete.

“If you’re a small business in Washington state, you’re paying about 19 per cent less in taxes than a small business of the same size in B.C.,” said Nanayakkara.

Grocery impact

Canadian food analyst Dr. Sylvain Charlebois says the thirst for Canadian products remains, one year into U.S. President Donald Trump’s second term, but it could be fading.

“Frankly, I think the Trump effect, if you will, is, is dying off,” said Charlebois.

He believes Canadians are becoming accustomed to the constant threats from south of the border and have adopted shopping habits avoiding certain products.

This all comes as Canada, Mexico and the United States are nearing potential negotiations on the Canada U.S. Mexico Agreement (CUSMA), the trade deal that protects Canada from the heaviest impacts of Trump’s tariffs.

On Wednesday, U.S. Treasury Secretary Scott Bessent warned Prime Minister Mark Carney that his recent public comments against U.S. trade policy could backfire going into the formal review of CUSMA.

“I would not pick a fight going into (CUSMA negotiations) to score some cheap political points – either you’re working for your own political career or you’re working for the Canadian people,” Bessent told CNBC.

Charlebois says the dialogue is concerning as Ottawa looks to pivot to other markets outside of North America and the response from the United States in unclear.

He explained that if one of the three CUSMA members drops out of the agreement, or if CUSMA collapses altogether, it could be detrimental to Canadian exporters and eventually impact food prices.

“We sell about $75 billion worth of agri-food products to the U.S. every single year,” said Charlebois. “So if these products become less competitive as a result of the end of CUSMA, that’s going to be problematic for the companies we have here.’

He went on to say that Canadians rely on these companies to provide food and grow economies to keep unit prices as low as possible. Charlebois says agri-food exports are subsidizing Canadian products, but if that option is taken away, food prices will eventually rise.

On Wednesday, Carney told reporters “relations are good” with the United States. CUSMA is up for a formal review in July.