“Buy Canadian” isn’t just about patriotism — the movement borne of U.S. President Donald Trump’s tariffs could have a powerful effect on the local economy, according to a BMO analysis.
The consumer-led initiative could add roughly $10 billion to the Canadian economy annually, estimates BMO economist Robert Kavcic. That translates into a 0.3 percentage-point bump to economic growth.
Kavcic said that while the impact is “meaningful,” buying exclusively Canadian products can be costly and impractical.
“The challenge is that Canada is a significant net importer of household products, cars and consumer electronics,” he said, adding that 35 per cent of household consumer goods are reliant on direct and indirect imports.
“Avoiding imports altogether is almost impossible, and doing so partially could come at a higher price.”
Still, BMO estimates that even a “modest shift” in spending toward substitutable Canadian goods could add $6 billion in value to the economy.
That, along with a boost in domestic travel and government spending, could sustain additional economic growth, said Kavcic.
This is a developing story.
