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Trump's tariffs fuel Canadian consumer shift away from US

goods

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Canadian shoppers increasingly seek locally made products

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Some US citrus and beverage exports to Canada face order

cancellations

By Siddharth Cavale, Nivedita Balu, Jessica DiNapoli

TORONTO/NEW YORK, March 31 (Reuters) - The "Buy

Canadian" movement is sending new ripples of concern through the

executive offices of U.S.-based consumer companies that banked

on selling their products on Canadian retail shelves.

California-based diaper maker Parasol Co had been working

since January with a distributor to expand the sale of its

diapers and baby wipes to new retailers in Canada, including

convenience stores, CEO Jessica Hung said.

But, in early March the distributor, who Hung declined to

name, halted work on the deal, she said, because of growing

anti-American sentiment in  Canada.

"They were instructed by a retailer to pause any American

brand launch," Hung said, referring to the distributor. "They

told us they would re-evaluate when market conditions allow."

"That's the kind of disruption we would never expect,"

said Hung. "I never heard of this happening until now. It's

definitely quite a bit of headwinds."

A dramatic reshuffling of Canada's retail shelves

illustrates the impact of patriotic consumerism in Canada, which

imported nearly $350 billion of products from the United States

in 2024, making it its largest trading partner.

U.S. President Donald Trump's jabs to annex Canada, the

imposition of a 25% levy on steel and aluminum from Canada and

threats to tax all other imports from the country have prompted

a rallying cry among many Canadian shoppers to eschew U.S.-made

products.

Parasol, which sells its products primarily online and at

Target ( TGT ) stores in the U.S., was working on labeling its

packages in French for Canadian shoppers, Hung said. She added

that she had already begun making decisions about which specific

products would be part of the now-scrapped Canada distribution

agreement.

Shopper Rebecca Asselin, a mom and health insurance

professional from Saint-Jean-sur-Richelieu, Quebec, has been

using social media to share her story about her search for

Canadian products.

She told Reuters she recently switched to purchasing Royale

diapers, made by Irving Personal Care of Moncton, New Brunswick,

one of the only manufacturers of baby diapers and training pants

in Canada. "I never really considered before where diapers were

made, but apparently, Canadian-made diapers are kind of hard to

come by. That's a big change for us."

Irving Personal Care said retailers from all over Canada

have been reaching out to discuss increasing distribution.

"As the only branded baby diaper made in Canada, our weekly

shipments have quadrupled," Jason McAllister, Irving Personal

Care's vice president of business operations, told Reuters.

DRINKS AND CITRUS EXPORTS

The Buy Canadian movement is not just hampering one diaper

business but also drinks and citrus fruit from the U.S.,

companies say. In early March, Jack Daniel's maker Brown Forman ( BF/A )

called the removal of American bourbon and whiskey from

Canadian liquor stores worse than Canada's retaliatory tariffs

and a disproportionate response to Trump's levies.

A source familiar with California's citrus fruit exports

told Reuters in early March that Canadian retailers have

cancelled their orders.

GT's Living Foods, based in Los Angeles, California, and

known for its Synergy kombucha products, said retailers in

Canada, including Walmart ( WMT ), have been placing orders for fewer

products because of tariff uncertainty.

"The distributors for Walmart Canada, Loblaw's ( LBLCF ), Metro

and Sobey's told us they will buy one truck

instead of two trucks of products, because retailers are being

cautious and they are waiting to see how this (tariff situation)

will play out," said Daniel Bukowski, who managed the accounts

of these retailers for GT's Living Foods and was senior vice

president of sales until mid-March.

Walmart ( WMT ) said it "will continue to work closely with

suppliers to find the best way forward during these uncertain

times."

Loblaw's ( LBLCF ) and Sobey's did not respond to Reuters requests for

comment.

Metro said it prioritizes local Canadian products whenever

possible. "Our intent is not to remove American products from

our shelves if the tariffs take effect, we will evaluate as we

do currently, all product listings with the intent to offer the

best value and products," a spokesperson said.

Demeter Fragrances, a small family-owned and operated

business that manufactures perfumes in Pennsylvania, said it

halted its plan to expand into Canada in 2025. "Canadian

sentiment has turned away from American product," said Mark

Crames, Demeter Fragrances' chief executive officer.

"Consequently, it seems like a wasted effort and, we simply

scrapped the initiative."

Grime Eater Products Limited, a Canadian manufacturer of

Response and Luster Sheen hand cleaning products, had been

trying unsuccessfully for years to get Canadian Tire ( CDNTF )

to stock its products, according to Vice President Tracy Hayes.

With the Buy Canadian movement spreading, she said, "The

future looks promising."

That's because she learned from a buyer at Canadian Tire ( CDNTF ),

the operator of 504 stores in Canada, that it was considering

reducing its offerings of her company's U.S. rival, Fast Orange,

a hand cleaner brand manufactured by Permatex.

Permatex and Canadian Tire ( CDNTF ) were not immediately available

to comment.