Amid trade war threats, a KPMG survey finds that the majority of Canadians are choosing to buy Canada but also want retailers to make it easier for them to do so.
The survey finds that more than nine in 10 say they want stores to promote Canadian products and think grocery stores should be required to give them preferential shelf space, with nearly 70 per cent wanting them to stop selling U.S. products altogether.
“We’re seeing a significant shift in the shopping behaviour of Canadians, who are fired up to support local producers, artisans, and companies,” says Kostya Polyakov, Partner and National Consumer and Retail Leader at KPMG in Canada. “As many as 70 per cent of Canadians in our survey were clear – they will boycott U.S. products with eight in 10 actively looking for non-U.S. versions of products when a Canadian one isn’t available.
“Canadians are fighting for Canada,” he adds, “to keep jobs and their dollars within the community. But it’s not always easy at first glance to know if what they’re buying is Canadian and increasingly, they now demand retailers make it easier for them, calling out those that don’t.”
Retailers are already seeing changes in shopping habits, with 84% of Canadians reading packages to see where products are made and three-quarters willing to pay more to buy a Canadian product over one that’s made in the U.S.
Loblaw Companies Ltd. recently reported a 10% increase in sales of items labelled product of Canada, made in Canada, or produced in Canada for the first week of February compared to the previous week.
To help them make more informed decisions and choose Canadian products, 93% of Canadians say they want retailers and grocery stores to identify and promote Canadian products. Sixty-eight per cent think, in a trade war, grocery stores should stop selling U.S. products and produce, while 85% say the trade war has prompted them to support more local producers or companies.
Should U.S. President Donald Trump follow through with a 25% tariff on imports from Canada, 70% of Canadian consumers say they will boycott U.S. products, including produce and other groceries. Eighty per cent say they are purposefully looking for a non-U.S. version (e.g., if fruit is available from either the U.S. or Peru, choosing the Peruvian version) if a Canadian product equivalent isn’t available. Grocery stores should be required to give preferential shelf space to Canadian products, says 89% of Canadians.
A total of 84% say they are paying more attention to the origin of where products are made by reading the labels, and 77% say they will buy Canadian products even if it costs more.
Poll findings reveal consumers are paying attention to more than just labels as well, as the vast majority (93%) hope – and expect – Canadian retailers are searching for non-U.S. suppliers with 85% saying they will think twice about buying from stores that move its entire operations to the U.S.
“As consumers increasingly prioritize Canadian products, it is crucial for retailers to adjust their supply chain so they can continue to operate locally,” continues Polyakov. “This not only serves to build trust with customers by aligning to their expectations but also helps strengthen our national economy. There is also strong agreement among survey respondents that inter-provincial trade barriers must be eliminated so they can have enough product choice to continue buying Canadian.”
Despite the surge of national pride, affordability remains a top concern as 86% are worried Canada will slide into a recession and 90% think governments should lower the cost of everyday essentials by reducing taxes or providing tax credits to help consumers through a tariff war.
“While it’s clear Canadians will pay extra to support the home team, the impact of the rising cost of essentials is also top of mind for many,” Polyakov explains. “With consumers strongly expecting to see their grocery bills go up, they plan to cut back on non-essential spending, which could hit sectors like dining and entertainment hard.”
The poll also finds the following:
- 93% say they hope – and expect – Canadian retailers are searching for non-U.S. suppliers 85% say they will think twice about buying from a company that deserts Canada and moves its entire operations to the U.S.
- 96% say inter-provincial trade barriers must be eliminated to make it possible for consumers to buy Canadian and have a choice of Canadian products
- 86% say they are worried that Canada will slide into a recession
- 24% are willing to pay 2-5% more to make sure they are buying a Canadian product over one that’s made in the U.S.
- 16% are willing to pay 6-10% more
- 14% are willing to pay more than 11% more
- 25% say they can’t afford any increase in prices
- 90% say to help consumers through a tariff war, governments should reduce the cost of everyday essentials, like food and gas, by reducing taxes or providing tax credits
- 94% expect the cost of groceries to rise for their household
- 84% say that if the cost of essentials – like groceries and produce – go up, they will have to reduce spending on other things, the “nice to have” including eating out and entertainment
KPMG in Canada surveyed 1,934 Canadian adults from February 12 to February 25, 2025, on Sago’s AskingCanadians panel, using Methodify’s online research platform. Fifty-two per cent of respondents identified as female and 48% as male. Thirty-nine per cent live in Ontario, 24% Quebec, 13% British Columbia, 11% Alberta, 7% Saskatchewan and Manitoba, and 5% Atlantic Canada.