As trade tensions between Canada and the U.S. rise, it’s not just a political issue; it’s one that hits home in grocery stores. Many Canadians are now feeling the pinch at the checkout line, where their food choices reflect broader economic realities.
A recent survey from the Agri-Food Analytics Lab at Dalhousie University, involving nearly 10,000 Canadians, revealed some interesting trends. When asked if they’d pay a little extra—5% to 10%—for Canadian-grown food over cheaper U.S. imports, 60.8% of respondents agreed. Baby Boomers were particularly likely to choose Canadian products, with 36.2% stating they would always prefer local options. In contrast, only 25.5% of Gen Z felt the same way.
This data points to a growing awareness among consumers about where their food comes from. Many people are willing to support local farmers, especially in tough economic times. However, younger shoppers still prioritize pricing, showing that cost remains a significant concern.
The survey also uncovered how Canadians might respond to potential U.S. food import restrictions. About 39.6% would consider sourcing food from international markets, while 37.6% would stick with Canadian substitutes, even if they cost more. This indicates a split in strategy, with older Canadians leaning towards global options and younger shoppers more inclined to support local.
Despite the willingness to pay more for Canadian goods, trust in local grocery stores and producers is shaky. Only 20.7% of people fully trust these entities to keep prices stable during troubling times. A further 30.6% trust them somewhat, while a large 48.7% either feel neutral or actively distrustful.
This lack of trust is crucial. Many Canadians are not entirely convinced that price hikes are warranted or explained clearly. It reflects a deep concern about food pricing and fairness within the supply chain. Retailers must work to build trust through transparency about costs and tariff effects.
Interestingly, nearly 48% of Canadians believe domestic products are safer and of higher quality than those from the U.S. Only 1.5% think American offerings are superior. This perception is a significant asset for Canadian agriculture, but it’s not absolute. About 28% of Canadians see Canadian and U.S. products as equal, and this viewpoint is prevalent among younger generations. Enhancing food safety measures, clear labeling, and transparent communication can help strengthen the brand of Canadian food products.
Recent responses to Loblaw’s decision to mark tariff-affected items with a “T” have been largely positive. About 60.6% of Canadians supported this move, indicating a desire for clarity in food sourcing. It’s a sign that consumers are engaged and want to understand how global trade impacts their shopping.
For those in the food industry—policymakers, supply chain managers, and retailers—these insights highlight important strategies. First, supporting local supply chains should be a priority. Second, transparency around pricing and sourcing is essential to gaining consumer trust. Finally, leveraging Canada’s reputation for quality food can help attract customers both at home and abroad.
In these uncertain times, Canadians are looking inward for security when it comes to food. They are willing to support local producers and want clear communication about prices. However, businesses must remember that this goodwill is not limitless. Trust and transparency will be vital in navigating trade disruptions and maintaining a strong food system.
Dr. Sylvain Charlebois is the Director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast.
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