April 28, 2025 – The United States’ decision to impose tariffs on Canadian imports has a significant impact on the food and beverage industry. These tariffs challenge trade relations and directly affect consumer behavior and purchasing habits. Here we explore Canada’s response to these tariffs and the impact on everyday Canadian consumers, highlighting why Canada’s response matters more than ever.
Trump’s Tariff Effect
In Canada, 40% of consumers’ top health concern is stress, with economic uncertainty and political instability adding to the burden. However, political instability is not a new issue, as the government actively responds to Trump’s tariffs.
30% of consumers in Canada feel less control over their food/beverages purchases over the past year. The top 5 factors influencing purchases are economic uncertainty/cost of living, healthcare issues, corruption, political unrest, and lack of trust. For consumers, honesty and transparency are core values when choosing products. Brands that align with these values make tariffs more tolerable for consumers.
Striving for Control: A Shift in Consumer Behavior
Consumers are now seeking ways to reclaim control through smarter shopping habits and budgeting strategies, influencing Canadian brands and businesses. Their top actions include cooking from scratch, reusing products or packaging, and doing side hustles for extra money. Brands can respond to these consumer actions by providing tools to get the most out of products and to gain their trust, confidence and loyalty that outlast current political/economic turmoil.
For instance, cooking from scratch may add stress and fatigue. Here, brands can offer recipe suggestions, meal planning tools, and ideas for repurposing leftovers. Highlighting counterparts to American products helps consumers navigate Trump’s tariff challenges more effectively.
Building Trust Through Transparency
Choosing locally sourced or produced products allows consumers to forego Trump’s tariffs on import goods. This approach further motivates local growers, producers, and merchants to create ethical and sustainable products.
Nearly half of consumers in Canada trust their government to alleviate the cost of living, while 37% trusts global brands. But most believe global brands prioritize profit over consumer benefits. Consumers value transparency, as misinformation makes them feel less in control.
Priorities and Growing Moment
The top priorities of consumers in Canada in food/beverage are cost/value for money, freshness, flavor, food safety, availability, health aspects, and shelf life. Brands are their least important factor, which indicates they can switch to local brands offering the same features as global brands.
The hashtag #buycanadian is trending both by brands and consumers in response to Trump’s tariffs. Locally produced goods gained importance even before the tariffs, and their significance is expected to grow further. This unprecedented time highlights the appeal of products made in Canada, though price sensitivity remains a significant factor for consumers.
What’s Next for Canada’s Brands in the Tariffs?
Trump’s tariffs, coupled with political and economic mega trends influences macro trends of consumer lifestyles, attitudes, and consumption behavior. Innova highlights several opportunities related to tariffs aligning with its consumer trends.
Communicating openly about necessary adjustments in pricing or product composition due to tariffs can build consumer trust. Highlighting the direct impact of sourcing Canadian materials and labor helps in displaying the brand’s commitment to supporting local industries. Using apps, databases, and e-commerce platforms, brands can empower consumers to filter and identify Canadian products easily. Interactive tools, such as origin trackers, can simplify decisions and promote confidence in buying locally.
Packaging and marketing that incorporate symbols like the maple leaf or “Proudly Canadian” logos can draw participation in boycotts. Storytelling that emphasizes community support, sustainability, and craftsmanship can deepen consumer loyalty and pride. While tariffs might push prices higher, offering loyalty programs, rewards, and exclusive discounts can create a sense of value for consumers. Providing meal planning solutions or personalized promotions through retailer apps can help consumers feel in control and engaged.
Brands can inform shoppers about the guidelines for claims like “Made in Canada” and “Product of Canada.” This transparency emphasizes the integrity of local production standards.
This article is based on Innova’s Trump’s Tariffs: Canada’s Response & Consumer Impact report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
