Ottawa-Grocery store purchases of Made in Canada foods jumped during the second quarter of 2025 and Farm Credit Canada economists say it was in response to the tariff actions of President Trump.

After the processed food import share reached the highest level in recorded data during the first quarter, the second quarter saw the sharpest quarter-over-quarter drop in import share, falling 2.3 percentage points in food manufacturing and 2.8 in beverage, FCC said.

The declines were likely amplified by importers bringing in extra shipments of non-perishable items in the first quarter to avoid looming tariffs combined with Canadians increasingly choosing domestic products.

“While it will take months of data to quantify the full impact and the root cause, what is undeniable is there is a shift happening in international trade patterns,” FCC said.

“Historically, when Canadians couldn’t find what they needed from domestic sources, they primarily turned to the U.S. Proximity made it practical for importers, with shorter shipping routes helping costs and freshness. The U.S. still supplies over half of Canada’s processed food imports and nearly half of fresh produce and beverages.

“But in 2025, Canadians are looking elsewhere. Imports from the rest of the world are starting to take a larger share of Canadian imports, up from a year earlier across all categories.”

Grocery stores are identifying Canadian products and shoppers are choosing what feels right to them and that seems to mean buying anything but American.

“This shift in consumer behaviour is reshaping Canada’s food supply chain. While the U.S. remains Canada’s largest trading partner, food imports from south of the border are declining. Canadians are turning to other countries and to domestic suppliers. The movement is bringing hope to Canadian food businesses, but it’s also revealing a few limitations of our food system and the complexity of consumer choices.”

Many Canadians have long shown a preference for homegrown products to supporting local businesses, protect domestic jobs and asserting national pride. Others see domestic labels as indicators of quality or safety.

“But Canada’s food system also has limitations. Our climate, geography and production capacity mean we can’t grow and process everything. Since 2014, imports as a share of domestic food and beverage supply have been relatively stable, roughly 20 per cent for processed food and 14 [er cent for beverages.

Recent research from Food Processing Skills Canada (FPSC) found 76 per cent of Canadians are motivated to avoid U.S. products with 43 per cent making significant changes to their grocery habits this year.

The main reasons are anger and frustration with the U.S., a desire to help Canadian processors and national pride, FCC said. “This diversification is not only a response to current consumer preferences and tariff costs, but also part of a longer-term strategic move to reduce reliance on a single trade partner. The challenge now is navigating this shift without compromising access or affordability for consumers.”

Some Canadians simply cannot afford to be this selective. In 2023, the lowest income households spent upwards of 17 per cent of their total expenditure on food compared to only 8 per cent for those in the highest income bracket.

In 2024, 25 per cent of people lived in food-insecure households, up from 23 per cent in 2023.

FPSC said that 33 per cent of respondents would maintain their current level of spending on Canadian products until they cannot afford it anymore and 52 per cent said that purchasing more Canadian products has made their grocery bill more expensive.

Labels have become a focal point for shoppers. The Canadian Food Inspection Agency has seen a surge in complaints about country of origin labelling this year and the term maplewashing, where consumers are being misled about a product being Canadian, is making headlines.

A demand for more domestic processing could mean more jobs and more investment in the agri-food sector which long-term could boost GDP, FCC said. It is also encouraging that Canadians are taking time to learn about where their food comes from and take a more active role in selecting products in the store. Finally, diversifying trade for the products that cannot be grown here can help set Canada up to be more resilient in the years to come.

This news report prepared for National Newswatch