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EMARKETER

FAQ: US-Canada Trade War

How Two-Way Tariffs Could Affect Consumers, Retailers, and Brands in Canada

Report by Paul Briggs  |  Mar 24, 2025
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Table of Contents
US tariffs and Canada’s response are shifting the ground beneath Canada’s retailers and brands
How important is international trade to Canada’s economy?
Sources
Media Gallery
About This Report
Canada’s trade war with its largest trading partner is underway. While uncertainty remains around the scope and depth of US tariffs, Canadian brands and retailers need to rebalance a heavy reliance on US-based customers and suppliers.
Topics
Retail Sales
Ecommerce Sales
Automotive
Canada
Table of Contents
US tariffs and Canada’s response are shifting the ground beneath Canada’s retailers and brands
How important is international trade to Canada’s economy?
Sources
Media Gallery

Q1 2025 may mark a turning point in Canada-US relations, as a trade war initiated by President Trump has shaken confidence on both sides of the border. There is still a lot of uncertainty about the timing and scope of US tariffs as well as countermeasures by Canada. But longer term, brands and retailers in Canada need to explore alternative suppliers and develop markets further afield.

Key Question: How does a trade war affect Canada's economy, especially for brands and retailers with a heavy reliance on US suppliers and customers?

Shopper Intentions in Canada Now Heavily Favor Domestic Goods and Services (% of consumers in Canada, Feb 2025)
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Key Stat: In response to the trade war, 61% of shoppers in Canada intend to buy only domestic products.

Here’s what’s in the full report

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4charts

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Table of Contents

  1. US tariffs and Canada’s response are shifting the ground beneath Canada’s retailers and brands
  2. How important is international trade to Canada’s economy?
  1. Sources
  2. Media Gallery

    Charts in This Report

    Shopper Intentions in Canada Now Heavily Favor Domestic Goods and Services (% of consumers in Canada, Feb 2025)Canada's Fraught Relationship With the US Tops the List of National Concerns (% of adults in Canada, March 2025)
    Canadian Sentiment Regarding the US Has Reached a New Low (% of adults in Canada who hold a favorable view of the US, Dec 2019-March 2025)More Than Half of Travelers in Canada Have Changed Their Plans to Visit the US (% of travelers in Canada who planned on traveling to the US, Feb 2025)

    authors

    Paul Briggs

    Contributors

    Matteo Ceurvels
    Donte Gibson
    Senior Charts Editor
    Madan Kumar
    Copy Editor
    Amy Rotondo
    Director, US Research
    Heather Sprung
    Senior Editor
    Matt Torpey
    Senior Chart Editor
    Paul Verna
    VP, Content
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