A string of tariff threats and annexation taunts from U.S. President Donald Trump isn’t getting in the way of Canadians’ love of free samples, bulk goods and $1 hot dogs.
Costco, the popular, membership-only, American-owned big-box retailer founded and headquartered in Washington state, seems to have emerged as an exception to many peoples’ rule to avoid American products and companies.
The call for Canadians to boycott U.S. businesses and products and to “buy Canadian” instead comes in response to Trump’s punitive trade policies and “51st state” comments that are souring the historically friendly relationship between Canada and its southern neighbour. A recent Interac survey found that eight in 10 Canadians believe supporting local businesses is important to them amid the evolving threats.
According to Costco Canada’s website, more than 10 million Canadians have a membership and the company averages $25 billion (Canadian) in sales annually from its 109 stores in nine provinces across the country.
Everyone has their own reasons for sticking with the U.S.-based club retail giant, from considering Costco to be a good employer to finding its prices affordable.
“Right now they are the best option for my family,” said Katlyn Barth, a resident of Trenton, Ont. “I mean, I don’t think you can find a lot of grocery stores that still sell butter for less than $6 a pound.”
Barth and her husband used to shop at Loblaw-owned No Frills, but as prices at the discount retailer started to rise during the COVID-19 pandemic, the couple, who have a four-year-old, started hitting up the nearest Costco in Oshawa or Peterborough to buy staples their household goes through “pretty fast” each week.
The majority of people who reached out to the Star for this story also pointed to Costco’s commitment to its diversity, equity and inclusion practices (DEI) as another reason for their continued loyalty. The retailer is continuing to keep its DEI policies in place amid a sweeping rollback of these initiatives in the U.S. as part of Trump’s “anti-wokeism” campaign.
“You cannot avoid all American companies,” said Jae Park, who has been a Costco member for 25 years. “But I think they are less evil.”
“I will continue to shop (at Costco), but I will look at the labels more carefully,” Park continued, adding that he hasn’t noticed his local Ottawa store become less busy since the tariff threats.
Like Park, Barth said she now looks for products on Costco shelves that are made in Canada or outside of the U.S., as are most Canadians. A recent Angus Reid survey found that four in five respondents have started buying more Canadian products since Trump’s threat to impose 25 per cent tariffs on all Canadian imports to the U.S.
Still, others like Rebecca Asselin, an Ontarian now living in Saint-Jean-sur-Richelieu, Que., believe Costco could be doing a better job of offering Canadian-made products. She told the Star she’s decided to leave diapers off her Costco shopping list until the retailer starts offering Canadian brands.
“I expect to see improvement in their offering or will be rethinking my choice (to shop there) in a few months’ time,” she said in an email.
Many of Costco’s products, including items under its name brand, Kirkland Signature, are Canadian made or sourced, however the company declined to comment for this story when asked what percentage of products it sells are Canadian.
Costco also declined to comment on whether it was considering trying to source more products from non-U.S. suppliers — something Tim Hortons has said it would do in light of the tariff threat — or whether its Canadian customers would see price increases as a result of tariffs.
Retail analyst Bruce Winder said people who choose to stop shopping at Costco or cancelling their memberships in the face of tariffs would be in the minority.
“Realistically, for a lot of Canadian households, Costco is a pretty big part of their shopping,” he said, noting that shoppers have already made a “sunk cost” by purchasing a membership (the lowest rate is $65 a year including tax).
Winder added that consumers might be willing to spend money at an American company that employs a lot of Canadians — something Barth mentioned was important to her since her husband works for Procter & Gamble, another U.S. corporation.
“When you purchase those items, that helps pay for my husband’s salary,” she said, “which we in turn bring to our community and invest in Ontario.”
“As much as I love and fully support the ‘Buy Canadian’ (movement), I don’t think it should come at the cost of other people’s jobs, especially good Canadian jobs.”
