Canada's consumer boycotts: The best weapon against Trump's trade tantrums?

Canadian consumers are boycotting American products in response to US trade disputes, with some liquor stores removing US liquor from shelves and canceling vacations. US Ambassador to Canada Pete Hoekstra called Canadians "mean and nasty" for their actions. Canadian officials are considering de-escalating trade tensions by making permanent changes to tax laws, but consumer boycotts could be a powerful tool in negotiations with the US.

Canadian consumers are boycotting American products in response to ongoing US trade disputes, leading to significant impacts on alcohol sales and tourism. The boycott has been driven by a combination of tariffs imposed by the US and the threat of further tariffs, causing a "Buy Canadian" movement to gain traction among consumers and businesses.

According to Spirits Canada, sales of U.S. spirits in Canada dropped by 66.3% between March 5 and the end of April due to the boycott [1]. The group, which represents Canadian manufacturers and marketers of distilled spirits, noted that total spirits sales in Canada fell by 12.8% during the same period. The removal of American spirits from Canadian liquor stores has had a ripple effect, hurting both American distillers and Canadian revenues, consumers, and hospitality businesses.

The boycott sentiment is not limited to Canada. A European Central Bank survey revealed that 44% of Europeans are turning away from U.S. brands, contributing to plummeting sales for U.S. companies [3]. Additionally, the boycott is expected to cause a drop in U.S. exports to Canada, particularly in food and alcohol. In 2024, Canada was the U.S.'s second-largest food export market, valued at $28.4 billion [3].

Tourism is also feeling the pressure, with foreign tourists canceling their travel plans to the US. The loss in revenue from international travelers is expected to cost the U.S. economy $12.5 billion this year [3]. The US economy could lose up to 0.3% of its GDP or about $90 billion in revenue in 2025 due to the international goods boycott and the decline in foreign tourism, according to Goldman Sachs [4].

US Ambassador to Canada Pete Hoekstra recently called Canadians "mean and nasty" for their actions, escalating tensions further. However, Canadian officials are considering de-escalating trade tensions by making permanent changes to tax laws. The boycott could be a powerful tool in negotiations with the US, potentially influencing the outcome of ongoing trade disputes.

References:
[1] https://www.reuters.com/world/americas/canadian-boycott-us-spirits-hurts-broader-alcohol-sales-trade-group-says-2025-07-22/
[2] https://www.investing.com/news/stock-market-news/canadian-boycott-of-us-spirits-hurts-broader-alcohol-sales-trade-group-says-4145397
[3] https://www.nbclosangeles.com/news/business/money-report/how-canadian-boycotts-are-impacting-the-u-s/3750204/
[4] https://www.cnbc.com/video/2025/07/22/how-boycotts-on-american-products-and-travel-are-impacting-the-us.html