Canadian Retailers Shift to At-Home Brands

Canadian retailers are putting a growing share of their spending toward homegrown brands, while U.S. retailers’ spend on goods from north of the border have barely changed. Those are the main conclusions of online wholesale platform Faire’s “Independent Retail Tariff Data and Insights Tracker” covering the first 60 days since the latest U.S.-Canada tariffs were announced. The analysis draws from millions of transactions across Faire’s global platform.

Here are some specific findings from the study:

* Canadian retailers’ spend on Canadian brands is up 10.7% from pre-tariff levels, building on a 9.4% lift seen at day 30.

* U.S. brands are gaining sales but losing share in Canada. As seasonal buying increases, Canadian retailers are directing more of their spending toward domestic brands, even as their dollar spending on U.S. products continues to grow.

* U.S. retailers’ spend on Canadian brands has barely moved. Canadian brands made up about 1.5% of U.S. retailers’ spend before the tariffs, dipped to 1.3% around day 46, and recovered to 1.4% at day 60. The difference has gone mostly to non-Canadian international brands, while U.S. brands’ share has held steady.

The 60-day window covered by the study started on Aug. 25, when Canada announced its counter tariffs on U.S. goods effective Sept. 8. Canada’s move followed a 50% U.S. tariff on select Canadian goods which took effect August 22.