Posthaste: The hidden costs of the ‘Buy Canadian’ movement

Many Canadians are choosing to buy domestic products to support their country, but some are finding their patriotism is coming at a growing cost. That’s because local purchases aren’t necessarily cheaper.

Since United States President Donald Trump imposed

tariffs on Canadian imports

, Canadians have chosen to fight back by buying products made in Canada and shunning U.S. options.

Some provinces have

banned U.S. alcohol sales

and the overall shift in buying trends has prompted some grocery chains to indicate which items are Canadian and which are tariffed.

But are these changes in behaviour actually helping Canadians in their wallets?

When it comes to food, many Canadian options are cheaper than their U.S. counterparts, but are more expensive than the U.S. versions pre-tariffs, according to a report from NerdWallet Canada.

“Canadian-imposed retaliatory tariffs mean you’ll pay more for American produce, dairy products, coffee, liquor, toiletries, furniture and more,” the report states. “Tariff-free Canadian alternatives may save you, but only on tariff costs.”

Alcohol is a category in which Canadians seem to be saving money, but the growing trend of cutting back on booze may be the bigger factor.

Sales of U.S. spirits fell 66 per cent in the first two months after several provinces banning them as push-back on tariffs, but sales of Canadian and international products also fell, signalling a drop in alcohol sales all together,

according to data from Spirits Canada.

Many Canadians are also opting to travel locally this summer instead of heading to the U.S.

Air travel from Canada to the U.S. fell 24.2 per cent year-over-year in May, while automobile round trips fell 38.1 per cent,

according to Statistics Canada.

Last month, a survey from TD Bank reported that 64 per cent of Canadians plan to travel domestically over the summer.

“It’s encouraging to hear that Canadians are planning to support local small businesses as part of their vacation plans this summer, as it helps both entrepreneurs and our local economies,” Julia Kelly, vice-president of small business banking at TD Bank,

said in the news release.

“It’s particularly welcome news, as many of our small business customers have been concerned about consumer spending slowing down.”

Still, keeping travel local might not be the most cost effective strategy. Cancelling existing vacations runs the risk of fees and penalties, and travel insurance rarely covers the cost in these scenarios, NerdWallet notes.

While the changing spending habits may not be saving money, Americans are taking notice. Earlier this week, U.S. Ambassador Pete Hoekstra called Canadians “nasty” for the measures.

“Canadians staying home, that’s their business, you know. I don’t like it, but if that’s what they want to do, it’s fine. They want to ban American alcohol. That’s fine,” Hoekstra said during a conference in Bellevue, Wash.

“There are reasons why the president and some of his team referred to Canada as being mean and nasty to deal with, OK, because of some of those steps.”

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Ontario Premier Doug Ford is back at it with his “Buy Canada” message as premiers meet this week for wide-ranging discussions in Huntsville, Ont.

Canadians are already planning to ramp up their boycott of U.S. products as deeper tariffs loom, according to the Bank of Canada’s quarterly survey of households.

“We’re encouraging all provinces and territories: start buying Canadian-made vehicles, start buying Canadian-made everything — that will hurt more than anything at all,” Ford told reporters on Monday.

The federal government is sending Dominic LeBlanc, the minister responsible for Canada-U.S. trade, to Washington this week to negotiate with the U.S. administration.

Read more here. 

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