Canadians have come together in numerous ways to fight and protect the Canadian economy, the culture and country as an independent entity.
One of the most widely spread efforts to do so is the country-wide boycott of US products and exports, ranging from fruits and vegetable to vehicles, vacations and more.
Many Canadians are taking pride in participating in this initiatve and are trying to bolster Canadian businesses. But to what extent is this sustainable and how could it backfire?
As with any sociopolitical/economic initiative, it’s critical to assess who is truly being impacted and if that impact will drive any real, responsible change.
In this article, we’re going to assess how the boycott is both benefiting and costing us.
Benefits:
1. Boosts to the Canadian economy
A Conference Board of Canada report estimates that redirected domestic tourism spending could deliver up to C$8.8 billion in net benefits by mid‑2025.
The domestic tourism surge is already visible: Canada saw a 4 % rise in early‑2025 spending, as Canadians prioritized vacationing within Canada over U.S. travel.
The “Buy Canadian” trend has translated into measurable impacts: Canadian grocers reported a 10 % bump in domestic-product sales.
Economists calculate that if each household redirected just $25/week from foreign products to Canadian ones, GDP would rise by 0.7 %, creating around 60,000 jobs; add a 10 % reduction in travel abroad and job numbers climb to 74,000 with a 1 % GDP boost.
2. Inspiring community innovation & entrepreneurship
Canadian tech ecosystems and startups are embracing the momentum: Developmental outreach from the Carney administration has spurred increased confidence in domestic innovation amid US tensions.
Small producers like Tinhouse Brewing have pivoted procurement to buy Canadian grain and diversify suppliers—demonstrating adaptability and grassroots resilience.
National pride movements (including “Buy Canadian” and label‑scanning apps) signal cultural shifts empowering Canadian SMEs and local markets to scale.
3. Diversifying trade opportunities
Exports to markets outside the US have surged: Canada’s share of exports to the U.S. fell from 78 % to 68 % year-over-year, while exports to markets such as the UK, EU, Japan, and Indonesia rose 42 %, including a 473 % jump in gold exports to the UK.
Provinces like Newfoundland & Labrador have increasingly shifted oil & seafood exports offshore—stepping up European and Asian trade via tidewater ports.
Internal reforms include accelerating dismantling of interprovincial trade barriers, with potential to boost GDP by 4 % in the long term (Washington Post).
Costs
1. Price increases
U.S. tariffs on Canadian inputs (like cocoa or metals) are making U.S. manufacturers less competitive, inadvertently benefiting Canadian exporters—but raising prices on Americans and potentially Canadian importers too.
Canadian consumers may also face higher costs if domestic goods are more expensive or if inflation results from disrupted supply chains (though specific CPI estimates are not yet public).
2. Hurting small businesses & workers
U.S. border-town businesses—like duty‑free shops, restaurants, gas stations—have reported drops of 40–80 % in Canadian traffic, forcing layoffs and reduced hours, particularly in upstate New York and border Michigan or Buffalo/Dreamland areas.
Canadian providers that depend on outbound travel bookings are also suffering: e.g., Maple Leaf Tours saw 40 % fewer U.S. package bookings, leading to staff reductions and revenue losses.
US companies partnered with local farmers are losing customers and revenue, making it more difficult to sustain their business models.
For example, Burlap & Barrel, a US public benefit corporation specializing in fairly sourced single-origin spices, has been dropped by many Canadian customers/regulars simply because of the boycott — not product quality, customer service standards, etc.
“We’re not really sure how to handle this. We as individuals at Burlap & Barrel did not vote to put Trump in office, and we do import some spices from Canada as well, so our supply chain is very intertwined with the whole tariff situation.” —Ethan Frisch, CEO of Burlap & Barrel
3. Unclear results & unsustainability
Experts caution that complete decoupling from the U.S. is unrealistic: while diversification has grown, deep structural ties and regional integration limit how far Canada can exit US trade.
Prime Minister Carney has already moderated some rhetoric and conceded ground (e.g., shelving a digital services tax, signaling flexibility) amid economic pressure.
Some reforms like inter‑provincial trade liberalization are complex, with resistance from unions and professionals limiting short-term benefits.
What do you think? Is the boycott truly effective and creating long-term, meaningful change?
