A growing wave of Canadian consumer patriotism is sending shockwaves through American companies that have long relied on Canadian retailers to sell their products.

California-based diaper brand Parasol Co. had been working with a distributor since January to expand its presence in Canadian stores. However, CEO Jessica Hung revealed that in early March, the distributor abruptly halted negotiations, citing rising anti-American sentiment.

“They were told by a retailer to pause all American brand launches,” Hung explained. “They said they would reassess once market conditions improved. This level of disruption is something we never anticipated.”

This shift in Canadian purchasing habits is making waves across multiple industries. The country imported nearly $350 billion in U.S. goods in 2024, but growing discontent over U.S. trade policies—fueled by President Donald Trump’s push to annex Canada, tariffs on Canadian metals, and threats of further trade restrictions—has encouraged many Canadians to favor homegrown products.

For consumers like Rebecca Asselin of Saint-Jean-sur-Richelieu, Quebec, the movement has led to tangible changes in buying habits. Asselin, a mother and health insurance professional, now actively seeks out Canadian-made products, recently switching to Royale diapers, one of the few locally manufactured options.

Canadian manufacturers are feeling the impact. Irving Personal Care, the producer of Royale diapers, reports a surge in demand. “Our weekly shipments have quadrupled,” said Jason McAllister, the company’s vice president of business operations.

The movement is affecting more than just baby products. U.S. whiskey brands such as Jack Daniel’s, citrus fruit exporters, and kombucha producers are also feeling the squeeze. In early March, a source told Reuters that Canadian retailers had canceled orders for California citrus. Meanwhile, GT’s Living Foods, known for its Synergy kombucha, reported that major Canadian retailers—including Walmart and Loblaw—are cutting back on American imports due to trade uncertainty.

Walmart Canada stated it is working with suppliers to navigate the changing landscape, while Metro emphasized its priority to stock Canadian goods whenever possible.

For some American businesses, the shift has been a dealbreaker. Pennsylvania-based Demeter Fragrances scrapped its planned 2025 expansion into Canada, with CEO Mark Crames citing an increasingly unfavorable market.

Meanwhile, Canadian companies are seeing new opportunities. Tracy Hayes, vice president of Grime Eater Products Limited, had struggled for years to get Canadian Tire to carry her company’s hand cleaners. Now, with the Buy Canadian movement gaining momentum, she’s optimistic.

“I’ve been told they’re considering reducing their inventory of U.S.-made Fast Orange hand cleaner,” Hayes said. “For us, the future is looking bright.”