The growing tide of nationalism among Canadian consumers, sparked by escalating trade tensions with the United States, is making a significant dent in American businesses. Recent data from multiple industries indicates that the "Buy Canadian" movement is not just a trend but a profound shift in consumer behavior.

U.S. tour operators are facing a staggering decline in bookings, with some reporting drops of up to 85%, as Canadians turn away from vacations in the U.S. American distilleries are also feeling the heat, losing out on major contracts. In contrast, Canadian grocery stores are experiencing a surge in sales for domestic products, with reports showing increases of around 10%.

The backdrop of this movement includes pointed remarks from former President Donald Trump about potential annexation and the imposition of steep tariffs—25% on steel and aluminum, along with threats of additional tariffs on Canadian imports. These actions have spurred a national rallying cry for Canadians to prioritize their local economy.

The impact of this movement is palpable. According to Catherine Prather, president of Kentucky's National Tour Association, the effect of Canadian consumers' newfound patriotism is causing what she describes as an “astronomical” drop in group travel to the U.S. One tour operator, once thriving with 39 U.S. bookings in the same period last year, reported just two bookings in the last two weeks.

The combination of fluctuating exchange rates and contentious rhetoric regarding Canadian sovereignty is alarmingly affecting Canadian travel. Corey Fram of the Thousand Islands International Tourism Council noted that visits from Canadians to U.S. tourist hotspots are plummeting, with border traffic down by 12% in early February alone, as highlighted by statistics from the Bridge and Tunnel Operators Association. Furthermore, Canadian automobile trips to the U.S. dropped to 1.2 million, marking a 23% decline from the previous year.

The implications are dire for the U.S. economy, as the U.S. Travel Association has projected that even a mere 10% decrease in Canadian visitors could lead to a staggering $2.1 billion reduction in spending and threaten approximately 14,000 jobs in the travel and hospitality sectors.

Even the grocery sector is not immune to this shift. Loblaw Cos., Canada’s largest food retailer, reported a substantial uptick in sales of Canadian goods, while Sobeys’ parent company, Empire Company Ltd., noted a rapid decline in the purchase of U.S. products. With about 12% of Empire’s annual sales linked to U.S. merchandise, the CEO expressed concern that brands not adapting to this patriotic purchasing trend may struggle to remain competitive.

Economic analysts speculate that if every Canadian household redirected just $25 weekly from foreign-made goods to Canadian products, it could boost the nation's GDP by 0.7% and create around 60,000 jobs. The cumulative impact of reduced international travel combined with this shopping shift could increase GDP by 1% and create 74,000 new jobs, according to Pierre Cléroux of the Business Development Bank of Canada.

The ripple effects extend to the American distilling industry, which is now grappling with potential losses due to the Buy Canadian campaign and subsequent policy reactions. Notably, Canadian consumers account for over 31% of all U.S. spirits exports. As tensions continue, American distilleries face significant challenges, including layoffs in the hospitality industry.

An example of the fallout from these trade tensions can be seen with Brough Brothers, Kentucky’s first Black-owned distillery. Co-founder Victor Yarbrough expressed disappointment over losing a critical deal to sell bourbon in Canada, expecting it to lead to a 2.55% sales increase for his company in 2025.

As the Buy Canadian movement continues to gain traction, both countries may need to rethink their approaches to trade relations and consumer sentiment to foster a more amicable and mutually beneficial partnership. The future remains uncertain, but one thing is clear: Canadian patriotism is reshaping the economic landscape, sending shockwaves through American businesses.