Months of hot air and bravado have finally come to fruition: Canada is in a trade war.
U.S. President Donald Trump’s 25 per cent tariffs on Canada, imposed Tuesday, have sent buy-Canadian intentions skyrocketing just as the stock markets and Canadian dollar plunge. Maple leaf signs line grocery store shelves and “proudly Canadian” advertisements fill the airways.
But navigating this new world can be daunting — and it’s not made any easier by how intertwined Canada’s supply chain is with the U.S.
Trying to buy Canadian is a “rabbit hole that can be very confusing for a consumer,” said Michael Graydon, CEO of the industry group Food, Health and Consumer Products of Canada.
Here’s what labels to look for — and what it all means.
What does ‘made in Canada’ mean?
The rules around labelling, enforced by the Competition Bureau and the Canadian Food Inspection Agency, are different for food and non-food products, according to Michael Badejo, a lawyer at Fillmore Riley LLP whose practice focuses on intellectual property and commercial litigation.
For non-food products, “made in Canada” means more than half the costs of making the product were incurred in Canada and the last “substantial transformation” happened here, too.
For food products, “made in Canada” simply means the last substantial transformation happened in Canada, Badejo said. For example, imported cheese, dough and sauce that was processed into a frozen pizza in Canada would be considered “made in Canada.”
In either case, a “made in Canada” claim must be accompanied by a statement about whether the ingredients are imported.
What does ‘product of Canada’ mean?
“Product of Canada,” on the other hand, is a far more strict standard.
For non-food products, Badejo explained, it means at least 98 per cent of the direct manufacturing costs were incurred in Canada, and the last substantial transformation of the good happened here.
For food, it likewise means at least 98 per cent of all ingredients, processing and labour used to make the product are Canadian.
Will all stores label their products?
Not all labels say where the product was manufactured or where the ingredients came from, and it takes time to make a packaging change, Graydon said.
In the meantime, many stores are taking on the responsibility of asking their suppliers for a full list of products made in Canada, so they can label them in-store. Many Toronto grocers began doing this a month ago before Trump paused his tariffs at the eleventh hour.
“Retailers will probably be the best source of accurate information,” Graydon said.
Should you boycott non-Canadian companies?
Locally-owned companies have taken a front seat in recent days, but buying Canadian doesn’t just mean buying Canadian-owned, Graydon said.
Many large foreign-owned companies have invested in Canada and are making products here, he said. He believes boycotting those companies would do more harm than good.
“Be very careful. It’s not that simple,” Graydon said. “(Consumers) could make some mistakes and we could have some economic consequences if we’re not careful.”
Check out the Star’s guide
If you’re looking for guidance on which brands to buy, the Star has compiled a list for your next shopping trip.
Why is it so hard to know what is Canadian?
Canadian and American supply chains are so connected that it can be hard to tell them apart. In some cases, Canadian products will go to the U.S., be manufactured into a product there, and return to Canada to be sold, Graydon said.
And there are some products which simply aren’t made in Canada at all, especially when it comes to over-the-counter drugs and consumer health products, according to Graydon.
“There’s certain things we just don’t make here,” Graydon said, but “we need those products on our Canadian shelves.”
