As President Donald Trump’s threats of a trade war with two U.S. neighbors becomes a reality, Canada’s prime minister, Justin Trudeau, is asking Canadians to buy local. The Made in Canada label and other local country-of-origin labeling is about to take on a whole new level of significance.
Country-of-origin labels are a helpful way to advertise that a product is locally made, but with the threat of wide-ranging tariffs, these labels could soon also signal to consumers that a product’s price tag isn’t artificially inflated due to Trump’s trade war.
Speaking last month after announcing retaliatory tariffs against the U.S. should Trump go forward with his plans, Trudeau said for Canadians, it was the time to choose Canada.
"Buy Canadian Instead" signs going up in BC Liquor stores pic.twitter.com/FjgGqKViUO— Riley Donovan (@valdombre) February 2, 2025
It might mean checking the labels at the supermarket and picking Canadian-made products, he said. It might mean opting for Canadian rye over Kentucky bourbon, or foregoing Florida orange juice altogether.
Already, Buy Canadian Instead signs went up at a B.C. Liquor Store in Vancouver while in Ontario, a province-controlled alcohol wholesaler pulled U.S. liquor from the shelves. There could soon be more to come, and there are signs other countries are looking to protect their own domestic production. On Monday, the Australian government said it would invest in protecting and promoting the country’s Australian Made, Australian Grown initiative over the next three years.
The homegrown boost
There’s a benefit to homegrown goods. A 2023 Morning Consult report found nearly two-thirds of U.S. consumers said they seek out products that are Made in America and nearly 50% said they would be willing to pay more. But for some products, like cars, which are made across multiple countries, it isn’t always as simple as slapping on a simple sticker about where it was made.
The Canadian government regulates what claims products can make about being made in the country. Its Competition Bureau requires products that claim to be a Product of Canada to have 98% Canadian content while products that claim to be Made in Canada must have at least 51% Canadian content and include a qualifying statement that the product is made in part from imported content. In the U.S., Made in America USA claims are regulated by the Federal Trade Commission which makes its own allowances for products made across borders, like Made in U.S. from Imported Parts for a product assembled in the U.S. with parts from other countries.
The rise of economic nationalism could draw more attention to where our products come from and the varied countries that make up our supply chain. Should patriotic purchasing become a higher priority for consumers, then, country-of-origin labels could carry more weight than ever.
