Canadian grocers rework supply chains as US boycott reshapes shelves
Canadian grocers are shifting produce sourcing away from the US as a buy-Canadian boycott intensifies, with imports from Morocco, Spain, Brazil and others rising.
A fresh wave of buy-Canadian sentiment is pushing supermarkets across Canada to rethink where their produce comes from, with grocers relabelling shelves and lining up suppliers far beyond the United States.
The shift follows a bitter trade war between Washington and Ottawa. The buy-Canadian movement first took hold last year after US President Donald Trump imposed tariffs on Canadian goods, and it has gathered force in recent weeks after trade talks collapsed and Trump signed an executive order to rename Lake Ontario.
"It is a lot more aggressive this time around than last year," said Giancarlo Trimarchi, president of independent grocer Vince's Market in Ontario, who took to Facebook to show customers that most of his produce is Canadian after receiving angry messages about US stock.
His four stores in the Greater Toronto Area now carry roughly 90% Canadian produce. Strawberries are being sourced from Quebec instead of the United States, and advertising spending has been trimmed as operating costs climb.
"We were always put in a position where you had to balance quality versus price. Now it's quality versus price versus country of origin," Trimarchi said.
Larger chains are adjusting too. Loblaw, Canada's biggest food retailer, brought back large maple-leaf signs in its produce and fresh-food sections in August after a brief pause, and reintroduced a "T" tag identifying products hit by tariffs. Metro, the third-largest grocer, said it would keep prioritising local Canadian products.
"There has been a permanent change in the Canadian psyche," said Gary Sands, senior vice president of public policy and advocacy at the Canadian Federation of Independent Grocers.
Canada is the world's fifth-largest importer of fresh vegetables by value, and the United States remains its dominant supplier, accounting for more than half of those imports, ahead of Mexico. But the US share of Canada's vegetable imports slipped to 62.6% in July from 69% in the same month of 2023, before Trump was elected. More than half of Canada's fruit imports still came from the US as of July. Trade talks broke down on August 21, triggering a new round of tariffs and counter-tariffs.
For some shoppers, the choice is personal. John Ambard, 27, a software engineer in downtown Toronto, said he avoids American products where he can, checking labels and researching companies online. "If I can support Canadian products and Canadian institutions through these tough times, I think that's a way to help in my small way," he said. "I'm a little bit mad with America right now with how things are going. The attitude has just not been that of a friend."
Canada's severe winters have long made fresh produce a challenge, leaving grocers dependent on greenhouses, stored root vegetables or imports that are usually cheaper. Experts say the change in consumer mood could push retailers toward more local suppliers, while Ottawa invests in a more self-reliant food system. The government is putting about C$3 billion over ten years into greenhouse construction to lift winter production, and is also trying to ease food inflation — among the highest in the Group of Seven — by expanding domestic supply.
Gordon Dean, owner of Mike Dean Local Grocer, which runs stores in rural Ontario and Quebec, said his outlets now sell more produce from Spain, Brazil and Honduras than before. "There's nobody running back to the US supply chain because once the new supply chains are established, they're far more diversified. We're in a safer position," he said.
Still, he noted that differing provincial regulations make it harder to move food across Canada, leaving many grocers reliant on suppliers south of the border.
Mike von Massow, a professor of food, agriculture and resource economics at the University of Guelph, said nationalism is currently outweighing economics, but that could change if relations improve. He said the Canada-US relationship may never fully return to its earlier state, though an easing of tensions — particularly under a new US administration — could revive demand for American products, which are often cheaper than alternatives.
Trump told reporters in Dublin on Saturday that Canada is eager to reach a trade deal and that an agreement could come "fairly soon," while repeating his complaints that Canada has treated US farmers unfairly and should remove its tariffs.