TORONTO — Canada’s continuing trade dispute with the United States is changing the way Canadians shop, with domestic food and household-goods manufacturers reporting a sharp increase in demand as consumers deliberately search for Canadian-made alternatives.
Even as households struggle with higher grocery bills and rising living costs, many consumers appear willing to make an extra effort — and in some cases pay more — to support products made at home.
Canadian manufacturers say the shift has become increasingly noticeable as tariffs and trade tensions with the United States encourage shoppers to pay closer attention to where everyday products are made.
For some smaller Canadian companies, the response has been dramatic.
Kathleen Chapman, president of Bowmanville, Ontario-based aVenco Ltd., says her company has experienced firsthand both sides of the trade dispute: serious pressure from U.S. tariffs alongside an extraordinary increase in support from Canadian consumers.
The company supplies parchment paper and previously relied on the United States for nearly 40 per cent of its customer base.
Its business was initially affected by American tariffs involving European goods because the raw parchment paper it uses comes from France. The company is now facing an additional 50 per cent tariff because the product is prepared and converted in Canada before being sold into the United States.
That has created a significant challenge for a Canadian company with substantial exposure to the American market.
But while tariffs have made selling south of the border increasingly difficult, Canadian consumers have responded by reaching out directly to the company and placing orders.
The change has been remarkable.
According to Chapman, aVenco received only about 20 direct-to-consumer orders during the previous two years. In just one week following the introduction of the latest U.S. tariffs, that number jumped into the hundreds.
The surge suggests the “Buy Canadian” movement is becoming more than simply a patriotic slogan. Consumers are increasingly translating their concerns about the trade dispute into purchasing decisions.
The challenge, according to Canadian producers, is that retailers have not always moved as quickly as their customers.
Chapman says consumers are actively looking for Canadian-made products, but many stores have been slower to adjust their shelves and purchasing strategies to reflect the changing demand.
That gap could represent a significant opportunity for Canadian retailers.
As shoppers become more conscious of product origins, companies that clearly identify Canadian goods and provide greater shelf space to domestic manufacturers may be better positioned to capture changing consumer preferences.
The trend could also provide smaller Canadian manufacturers with an opportunity to establish relationships with customers who previously purchased imported or American alternatives.
However, the trade dispute remains a double-edged sword.
Canadian companies that depend on American customers, imported raw materials or international supply chains continue to face higher costs and uncertainty. A surge in domestic demand can help offset some of those pressures, but it may not completely replace access to the much larger U.S. market.
For consumers, buying Canadian can also come at a higher price because smaller domestic manufacturers often lack the enormous production scale of multinational competitors.
Yet the growing demand suggests price is no longer the only consideration for many shoppers.
Where a product is made, who produces it and whether the purchase supports Canadian workers and businesses are increasingly becoming part of the buying decision.
The experience of aVenco demonstrates just how quickly consumer behaviour can change. A business that attracted only a handful of direct orders over two years suddenly received hundreds within days as Canadians responded to the latest escalation in the trade dispute.
Now retailers face pressure to catch up.
If the shift continues, the Canada-U.S. trade conflict may have an unintended long-term consequence: giving Canadian manufacturers greater visibility at home and encouraging consumers to reconsider products they once routinely bought from foreign suppliers.
What began as a reaction to tariffs could ultimately develop into a more lasting change in Canadian shopping habits — with more consumers checking the label before putting a product into their cart.