Canadian Grocers Boycott US Products As Tariffs, Trump's Annexation Remarks Worsen Tensions: 'American Booze Is Gone From The Shelves'

Canadian retailers continue to take a stand against U.S. products, starting with non-essential items such as alcohol. This move, driven by recent tariff disputes, is affecting various segments of the agricultural supply chain.

What Happened: Alisa Gorokhova, a resident from Quebec, observed a rapid shift in consumer behavior following tariff announcements, according to a report by Business Insider.

“There’s suddenly ‘made in Canada’ labels on things and American booze is gone from the shelves,” she mentioned, indicating a growing preference for Canadian-made products.

The boycott is a response to repeated tariff impositions by former President Donald Trump, including a 25% tax on Canadian steel and aluminum. Trump’s controversial remarks about Canada have further strained relations.

American businesses are feeling the impact. Ethan Frisch, CEO of Burlap & Barrel, reported losing Canadian customers.

“We're not really sure how to handle this,” Frisch stated, as the boycott contradicts his company’s mission of supporting small farmers, according to the report.

See Also: TSMC Proposes Joint Venture With Nvidia, AMD And Broadcom To Operate Intel’s Factories: Report

Large Canadian grocery chains like Sobeys Inc. and Metro Inc. are emphasizing local products. Sobeys, for instance, is working to reduce its reliance on U.S. goods, which previously accounted for 12% of sales.

Why It Matters: The trade tensions between the United States and Canada have escalated significantly.

Canada imposed 25% tariffs on over $20 billion worth of U.S. goods, including steel and aluminum, as a countermeasure to the Trump administration’s new duties.

This move was confirmed by Canadian Finance Minister Dominic LeBlanc, who stated that the tariffs would take effect immediately. The situation intensified when Canada announced additional tariffs on $30 billion of U.S. goods earlier in March.

Further complicating matters, Canada’s retaliatory tariffs have drawn criticism from U.S. Commerce Secretary Howard Lutnick, who described them as “tone deaf.”

Meanwhile, claims of high tariffs on U.S. dairy products have added to the tension, with President Trump accusing Canada of unfair trade practices.

Additionally, Tesla Inc. (NASDAQ:TSLA) has been affected, as its products were excluded from rebates in British Columbia amid these trade tensions.

Read Next:

• TSLA Stock May See A Significant Upswing, Says Jim Cramer: ‘Should Be Ready To Rally, Maybe Furiously’

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock