This Week in Canada/US Relations & The Buy Canadian Movement
May 8, 2025
In what will become a regular column, we provide an update on all of the news and happenings surrounding Canada/US Relations and the Buy Canadian Movement in the past week. Given current political/economic tensions, expect a roller-coaster ride!
Canada/US Relations
Canada-U.S. relations have remained tense this week, but signs of cautious diplomacy are appearing amid ongoing trade disputes and provocative rhetoric.
Key updates include:
- Diplomatic Engagement: Prime Minister Mark Carney met with U.S. President Donald Trump at the White House on May 5. Carney stated Canada is “not for sale, ever,” in response to Trump’s suggestion that Canada could become the “51st U.S. state.” Trump followed by saying "Never say never", to which Carney said: "Never, never, never, never, never". Despite this, the tone was notably more polite than previous political encounters with Trump, and it (seems) clear that Trump respects Carney more than he did Trudeau (which is not saying much, but still).
- Trade and Tariffs: Trump indicated that there was nothing Carney could do in this meeting to reduce tariffs, and it doesn't sound like Carney really tried. Thus, the U.S. continues to enforce 25% tariffs on Canadian auto exports and 10% on energy and potash. And Canada continues to retaliated with C$60 billion in tariffs on U.S. goods. Some American states are now lobbying Washington to resolve the dispute (e.g. Kentucky bourbon, oil), but so far Trump doesn't seem to care very much.
- Strategic Shifts: Canada continues to quite loudly pursue deeper ties with other trading and security partners, including the EU, South Korea, and Australia. A new Arctic radar defense deal with Australia, the possiblity of joining the 10-member Joint Expeditionary Force headed by the UK, and pointed remarks from Foreign Affairs Minister Mélanie Joly suggest a strategic pivot away from the U.S., though core trade interdependence remains.
- Public and Market Reaction: Canadian nationalism remains high following the Liberal election win on April 28. Markets have reacted nervously, with concern over supply chain disruptions—especially in sectors like aluminum manufacturing. However, overall, the Canadian markets remain range-bound and are holding their value. This may suggest that global money is downplaying the US threats of annexation, or that they see potential strategic opportunities for Canada (e.g. in oil, raw minerals).
- Our Take: The rhetoric may be softening, but fundamental disagreements persist. U.S. dependency on Canadian energy creates pressure points, yet Canada’s economic ties to the U.S. remain exceptionally strong—over 70% of our exports go south. This must change if Canada is to develop future independence and security; at the same time, we can't go it along, and a full break seems unlikely. Friction is here to stay.
The Buy Canadian Movement
The Buy Canadian movement continues to gain strength, shaped by patriotic consumerism and ongoing tariffs.
Key developments include:
- Impact on U.S. Businesses: Canadian retailers like Loblaw, Sobeys, and Walmart Canada are slashing orders for U.S. goods such as bourbon, citrus, and consumer products, prioritizing Canadian alternatives amid patriotic sentiment. U.S. companies like Parasol Co. (diapers) and Demeter Fragrances face canceled distribution deals, with boycott-driven losses hitting exporters, especially in border states reliant on Canadian trade. The boycott’s impact is amplified by grassroots initiatives like The Canada List and various social media campaigns on X, Facebook and Reddit, which continue to urge consumers to avoid American brands.
- Support for Canadian Companies: Major retailers are boosting Canadian-made products, and grocery chains reporting a 10% sales increase for domestic goods. Companies like Irving Personal Care (diapers) and Highbury Canco (canned foods) are scaling up to meet demand, supported by platforms like thecanadalist.ca and madeinca.ca. Social media campaigns are driving significant awareness - however, government backing has remained modest, interprovincial trade pacts remain limited, and global supply chains challenge growth.
- Consumer Behavior: Canadian Travel to the U.S. remains down, with a sustained 70% drop in flight bookings and a 12% reduction in border crossings since early 2025. Shoppers are increasingly choosing Canadian brands like Saputo cheese or vehicles like the Ontario-built Toyota RAV4, with 60% seeking “Made in Canada” labels. However, voluntary labeling and integrated North American supply chains make it hard to identify truly domestic products, confusing consumers.
- Economic Forecasts: The Business Development Bank of Canada estimates that redirecting $25 weekly per household to Canadian products could boost GDP by 0.7% (C$20 billion) and create 60,000 jobs in manufacturing and retail. However, Canadian goods often cost 10–20% more, straining budgets, and reliance on U.S. inputs (e.g., 40% of manufacturing components) limits production scalability. Recent discussions about tax incentives for manufacturers, ascended to new heights in Canadian manufacturing, but higher costs and supply chain issues could temper these gains.
- Our Take: The BuyCanadian movement is alive, well, and strengthening daily. Shoppers are voting with their wallets, which is simultaneously indicating their displeasure with US foreign policy, and insulating the Canadian economy from future stresses. Nonetheless, increased government support will be important, such as subsidies to Canadian owned/manufactured goods, and rules regarding CLEAR labelling on products so that consumers can shop without confusion. The Canada List is of course trying to fill some of these gaps, but more is needed. U.S. business losses may push tariff negotiations, but without sustained consumer and policy action, the movement’s impact could fade like past boycotts (let's not let it!).
Updates to The Canada List
It's been a busy week for The Canada List as well — adding new products, bolstering product notes, and laying the groundwork for what’s next.
Key updates include:
- 🔎 Advanced Filters: With the addition of advanced filters, you can now search specifically for products owned and/or manufactured within any country in the world. A few of our favourite filters:
- 100% Canadian owned
- 100% Canadian manufactured
- All but USA ← automatically filter out all American products 🎉🎉
- 🧼 Cleaning and Maintenance: We've spent much of the last two weeks scrubbing the dataset: fixing typos, removing duplicates, and overall creating a cleaner, tighter, more user-friendly search experience. We're not done – there are still a few cobwebs here and there – but version 0.9 of The List, released last week, offers a substantially cleaner experience.
- 📝 Validating and Bolstering Product Notes: In addition to general cleaning and maintenance, we've been going one by one through each product, ensuring that the product notes accurately reflect and explain the basis for the CANADA Score. Our goal is to become the #1 trusted source for product-origin/manufacturing information – a lofty goal, perhaps, but (we believe) an attainable one!
- 🤿 Product Deep Dives: As we build out The CANADA List, we're realizing that it isn't always enough to just list the brand and assign it a “6” – sometimes the required score actually differs substantially from product to product within a brand. Examples include:
- French's Ketchup is manufactured in London, ON; but French's Mustard is manufactured in Ohio and imported for Canadian sale.
- Neal Bros. salsas are 100% home-grown; but all of their bagged snacks are products of the USA (word is they are trying to bring it back home though).
To address this, you'll begin to see us “deep diving” into specific companies and product lines to ensure that each CANADA Score reflects not just brand ownership but the specific product’s contribution to the Canadian economy.
Have a request for a deep dive? Let us know at: suggestions@thecanadalist.ca
- Weekly Roundup: Week of May 16th
- The CANADA Scores Explained: How We Score the Products
A few other posts you may be interested in: