Canadian grocers rework supply chains as anti-US buying sentiment hardens

A deepening consumer preference for Canadian goods is reshaping supermarket shelves across Canada, pushing grocers to tighten country-of-origin labelling and line up fresh supply sources beyond the United States.

In Ontario, independent grocer Giancarlo Trimarchi took to Facebook to reassure customers that most produce in his stores is Canadian after receiving angry messages about US items on display. His four outlets across the Greater Toronto Area now carry roughly 90% Canadian produce, and he has switched to strawberries from Quebec instead of the US. The adjustments have squeezed operating costs, prompting him to trim his advertising budget.

"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.

The shift follows a trade war between Ottawa and Washington that has made shoppers more attentive to where their money goes. Buy-Canadian campaigns began early last year after US President Donald Trump imposed tariffs on Canadian goods, and have gathered pace in recent weeks after trade talks collapsed and Trump signed an executive order renaming Lake Ontario as Lake America.

Large chains are responding too. Loblaw, the country's biggest food retailer, restored prominent maple-leaf signs in its produce and fresh food sections in August after a brief pause, and brought back a "T" tag identifying tariff-affected products. 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 ranks as the world's fifth-largest importer of fresh vegetables by value, with the US still the dominant supplier at more than half of imports, followed by 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 fruit imports still came from the US as of July. Trade talks broke down on August 21, triggering a fresh round of tariffs and counter-tariffs.

For some shoppers, the calculus has changed. John Ambard, a 27-year-old software engineer in downtown Toronto, said he avoids American products where possible, checking labels and researching companies online. "I think, honestly, 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, adding that he was upset with how the US relationship has soured.

Canada's harsh winters have long made fresh produce a challenge, leaving grocers dependent on greenhouses, stored root vegetables or imports that are often cheaper. Experts say the shift in sentiment could nudge retailers toward more local suppliers, while Ottawa invests in a more self-reliant food system. The government is spending about C$3 billion over ten years on greenhouses to lift winter production, alongside efforts to curb food inflation, among the highest in the Group of Seven.

Gordon Dean, who owns Mike Dean Local Grocer with 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 moving food across Canada difficult, 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 added that ties may never fully return to their earlier state, though an easing of tensions, particularly under a new US administration, could revive demand for American products because they are often cheaper.