Are you paying more than before to buy Canadian? Experts say it’s complicated

As the threat of U.S. tariffs looms, Canadians have been urged to “choose Canada” by purchasing Canadian products. However, many consumers have begun to question whether they are paying a premium for patriotism as prices of some Canadian products appear to be on the rise.

Marketplace recently analyzed the prices of thousands of grocery products labeled as Canadian at a downtown Toronto Loblaws store. While the majority of products remained the same price, a significant number have seen their prices increase since the call to buy Canadian was issued by the government. Some of these products come from iconic Canadian brands like Tim Hortons, St-Hubert, Swiss Chalet, and Chapman’s.

Economists have differing opinions on whether the demand for Canadian products is driving up prices. Colin Mang, an assistant professor of economics at McMaster University, believes that the desire for Canadian products is giving retailers the opportunity to raise prices. A recent survey conducted by Caddle for Dalhousie University found that 60% of Canadians are willing to pay a premium for Canadian products over American alternatives.

Marketplace found that several Tim Hortons products at Loblaws saw price increases between February and March. Similarly, St-Hubert and Swiss Chalet products also saw price hikes during the same period. Chapman’s products, despite the company’s promise to absorb immediate cost increases due to tariffs, also saw price increases at the same Loblaws location.

While retailers like Loblaw deny raising prices due to the demand for Canadian products, economists and industry experts suggest that the increase in prices may be linked to the surge in demand for Canadian goods. Factors such as the cost of ingredients, transportation, and market conditions all play a role in determining the price of products.

It is clear that consumers are increasingly interested in supporting Canadian brands and products. However, as prices continue to rise, many are left wondering if they are truly getting a fair deal. While some companies have promised to absorb the cost of tariffs, the final price seen in stores is ultimately determined by the retailer. As the “Buy Canadian” movement gains momentum, it remains to be seen whether prices will continue to climb or if they will level out in the future.