Shoppers balance between boycotting and budgeting during tariff war

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Valerie McKellar typically shops at Costco to feed her family of four, but she’s concerned about whether it’s the best grocery option to keep her dollars supporting the local economy during a time of tariff wars.

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Costco Wholesale Corporation, which has stores around the world, is a U.S. company headquartered near Seattle.

“Should I keep doing that?” McKellar said of shopping at Costco. “I was wondering if it’s OK to buy Canadian products from an American company, or what’s the most appropriate thing to do.”

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McKellar has an executive membership at Costco but, if her annual renewal deadline was approaching, the Regina resident says she would seriously reconsider whether to continue.

The Canada-U.S. trade war has made some shoppers like McKellar think twice as they grab items off grocery store shelves. But given how intertwined the supply chain has become for food manufacturing, it can be difficult for the average consumer to navigate.

In addition to providing for her two teenage sons, McKellar also feeds several children at her home daycare.

“I have to be practical while still doing my best in the circumstances,” she said, adding that she’s held off on buying products such as carrots if there’s only options from the U.S.

When it comes to making decisions on where to spend your money, Tatiana Levit, an assistant professor in marketing at the University of Regina, noted that the bigger chains will be more resilient during tough economic times.

That includes retailers, restaurants, etc.

“Look who will be hit the hardest, and that would be the smaller stores — smaller, more local — and to make more of a difference that is where you can shop and support them,” Levit said, adding that it doesn’t need to be an all-or-nothing mentality if people choose to buy local.

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Around 64 cents from every dollar spent at a smaller Saskatchewan retailer stays in the provincial economy, according to a 2023 report from the Canadian Federation of Independent Business (CFIB) — a non-profit advocacy group for small- and medium-sized enterprises.

However, when money is spent at large multinational businesses like Costco, Walmart or Loblaws, only 11 cents from every dollar is recirculated in the same province where the purchase was made, according to CFIB.

The report also said that online purchases from retailers like Amazon have just eight cents per dollar retained locally. As a result, the next best thing to locally-owned stores and products might be shopping in person at malls like the Cornwall Centre, for example.

“When you do that, your dollars get rolled up into a revenue per-square-foot model that the mall then uses to show other stores that the business environment is good enough in Regina to come and open up here,” said Chris Lane, CEO of Economic Development Regina. “There’s a bunch of knock-on effects that come from spending money locally.”

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Last week, Loblaws announced it will soon begin labelling some products with a “T” to indicate it was sourced from the U. S. and its price increased in response to tariffs.

It may take some time to see increases at locally-owned businesses.

“I’m not convinced that a local, small retailer in Regina is going to start doing that immediately,” said Mike Tate, CEO of the Regina Chamber of Commerce. “The multinationals are going to react a lot faster to these tariff prices just because they have so much scale.”

Here’s a quick guide to remaining budget-friendly while choosing products made north of the 49th parallel.

Labelling

The “Product of Canada” food label indicates that an item met the threshold of 98-per-cent domestic content. That means “all or virtually all major ingredients, processing, and labour used to make the food product are Canadian,” according to the Government of Canada website.

Meanwhile, “Made in Canada” indicates that the product has met a 51-per-cent threshold. Based on federal guidelines available online, that means “the last substantial transformation” of the product occurred domestically.

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Other packaging can include “processed” or “prepared” to describe food when a specific step has taken place entirely within the country. A label that says “packaged in Canada” refers to a bulk imported product that was then packaged domestically.

These claims on food packaging are voluntary.

Kraft Dinner — the blue box of dried macaroni and powdered cheese that’s in almost every Canadian store — carries the “packaged in Canada” label. Kraft Heinz Canada is owned by an American parent company, but has domestic manufacturing in Quebec.

The company also makes Heinz Ketchup at its facility in Mount Royal, Que., using tomatoes grown in Leamington, Ont., according to its website.

Dollarama

Montreal-headquartered Dollarama is one option for thrifty shoppers who want to maximize savings.

Items such as Burn’s canned chicken and Holiday brand luncheon meat are from the Canadian company Maple Leaf Foods while Ontario-based Italpasta is a Canadian-grown option for spaghetti.

However, some Dollarama products are manufactured in Canada by a Canadian-registered subsidiary under an American holding company, like General Mills, Kellogg’s and Quaker cereals, and Nature Valley granola bars.

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Costco

American-owned Costco is known for its bargain-priced Kirkland Signature brand, but members can feel confident knowing that some products are still labelled with a little red maple leaf.

Kirkland does have a few items manufactured in Canada, such as its maple syrup and liquid honey. Other domestic items include napkins, paper towel and toilet paper while some Kirkland vitamins are produced by Windsor’s NutriCorp.

Wholesale Club

Loblaw’s Wholesale Club, headquartered in Brampton, Ont., sells Canadian-made Sunspun products in bulk sizes. That includes ketchup, mayonnaise, flour, beef burgers, french fries and onion rings, according to its website.

REACH Regina

Fresh and affordable produce can have limited sources.

A non-profit group called Regina Education and Action on Community Hunger (REACH) has a mandate to provide healthy and affordable food to those in need. It offers a subscription box of staples and seasonal produce every two weeks.

REACH estimates it can save shoppers around 50 per cent compared to other grocery stores since it buys produce at wholesaler prices.

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REACH’s Good Food Box is open to everyone. While the program doesn’t offer Canadian products exclusively, its supply chain can include domestic produce.

Note: The above information is not an exhaustive list. Item availability and product details may vary at local stores.

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