U.S. Companies Report Canadian Retailers Rejecting Their Products
The “Buy Canadian” movement is creating waves of concern among U.S. consumer goods companies that had been counting on Canadian retail shelf space for their products.
California-based Parasol Co, which makes diapers and baby wipes, had been working since January with a Canadian distributor to expand sales to new retailers including convenience stores. However, in early March, the distributor suddenly halted the expansion plans, according to CEO Jessica Hung.
“They were instructed by a retailer to pause any American brand launch,” Hung explained. “They told us they would re-evaluate when market conditions allow.”
“That’s the kind of disruption we would never expect,” she added. “I never heard of this happening until now. It’s definitely quite a bit of headwinds.”
This retail reshuffling demonstrates the impact of patriotic consumerism in Canada, which imported nearly US$350 billion of products from the United States in 2024, making it America’s largest trading partner.
U.S. President Donald Trump’s comments about annexing Canada, the implementation of a 25% tariff on Canadian steel and aluminum, and threats to tax all Canadian imports have sparked a movement among Canadian consumers to avoid U.S.-made products.
Parasol, which primarily sells online and in U.S. Target stores, had been preparing French-language packaging for Canadian consumers and had already selected specific products for the now-canceled distribution agreement.
Quebec resident Rebecca Asselin, a mother and health insurance professional, has been documenting her search for Canadian products on social media. She recently switched to Royale diapers, made by Irving Personal Care in New Brunswick, one of the few Canadian diaper manufacturers.
“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,” Asselin said.
Irving Personal Care reported that retailers across Canada have been inquiring about increasing distribution. “As the only branded baby diaper made in Canada, our weekly shipments have quadrupled,” said Jason McAllister, the company’s vice president of business operations.
The movement extends beyond diapers to beverages and produce. In early March, Brown Forman, maker of Jack Daniel’s, described the removal of American bourbon and whiskey from Canadian liquor stores as worse than Canada’s retaliatory tariffs and disproportionate to Trump’s levies.
A source familiar with California’s citrus exports reported that Canadian retailers have been canceling orders.
GT’s Living Foods, a Los Angeles-based kombucha producer, said Canadian retailers including Walmart have been reducing orders due to tariff uncertainty.
“The distributors for Walmart Canada, Loblaw’s, 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,” explained Daniel Bukowski, who managed these retail accounts for GT’s Living Foods until mid-March.
Walmart stated it “will continue to work closely with suppliers to find the best way forward during these uncertain times.”