‘Buy Canadian’ push rewires grocery supply chains

A consumer push to buy Canadian goods and boycott US products is altering grocery supply chains in Canada, forcing retailers to update country-of-origin labeling and secure alternative sources of supply. In Ontario, Vince’s Market president Giancarlo Trimarchi used Facebook to demonstrate to customers that most of the produce in his stores' shelves is Canadian following complaints about US products being stocked.

The escalating US-Canada trade war has heightened consumer awareness of where their spending goes. "Buy Canadian" campaigns began last year after US President Donald Trump imposed tariffs on Canadian goods and have intensified recently due to the breakdown of trade talks and Trump's executive order renaming Lake Ontario as Lake America. Trimarchi's four stores in the Greater Toronto Area now carry approximately 90% Canadian produce.

Grocers face increased costs due to these changes, with some, like Loblaw Cos, the country's largest food retailer, reintroducing maple leaf signs in their produce and fresh food sections to highlight Canadian origins and a "T" tag to identify tariff-affected products. Metro, Canada's third-largest grocer, stated it would continue prioritizing local Canadian products.

Gary Sands, senior vice president of public policy and advocacy for the Canadian Federation of Independent Grocers, noted a "permanent change in the Canadian psyche."

Canada imports more than half of its fresh vegetables, with the US being the largest supplier. However, imports from the US declined to 62.6% in July 2024 from 69% in July 2023. More than half of the country's fruit imports still come from the US. Trade talks between the two nations broke down on August 21, leading to new tariffs and counter-tariffs.

John Ambard, a software engineer in Toronto, has been avoiding American products and supports Canadian brands by checking labels and researching companies. The harsh winters in Canada make fresh produce challenging, and grocers typically rely on greenhouses, root vegetables, or imports. However, the shift in sentiment towards the US may encourage grocers to explore more local suppliers while Canada invests in building a more self-reliant food system.

The government is investing C$3 billion over ten years to build greenhouses and increase domestic food production, aiming to lower food inflation, which ranks among the highest in the Group of Seven developed nations.