A declining Canadian dollar is driving more consumers to support locally made products as they look for ways to make their weakening currency go further, according to a new survey.
A Bank survey released Thursday revealed that 68% of Canadians see the weaker dollar as a threat to their personal finances in 2025. In response, 80% of those concerned are adopting strategies to lessen its impact, such as avoiding U.S. products and choosing to travel within Canada.
The bank surveyed 1,500 Canadian adults before and after U.S. President Donald Trump signed an executive order on tariffs. The findings showed a rise in the percentage of people planning to cut back on U.S. goods to cope with a weaker Canadian dollar, increasing from 56% to 65%.
Additionally, 54% said they would reduce discretionary spending, up from 46% during the same period. There was also a decline in those considering investments in U.S. dollar-denominated assets.
The Canadian dollar has experienced significant fluctuations in recent weeks.
On January 31, the Canadian dollar closed at 68.8 cents USD, its lowest level since early 2016, as markets braced for Trump’s expected 25% tariffs on Canadian and Mexican goods set to take effect on February 1. However, a last-minute delay—pushing potential tariffs to early March—helped the loonie recover.
By Thursday, the Canadian dollar was trading around 70.5 cents USD, though it remained about five percent weaker against the U.S. dollar since September 24, when Trump’s election prospects began improving.
EQ’s survey also revealed that the weaker loonie has influenced Canadians to reconsider their travel plans.
Among those planning to travel, 62% now intend to vacation within Canada, up from 50% in early January.
Two additional surveys suggest that many Canadians are turning away from U.S. products in favor of Canadian-made goods as both a show of national pride and a response to the new U.S. administration.
The numbers highlight strong sentiment:
- A survey by the Angus Reid Group found that 98% of respondents are actively seeking Canadian-made products.
- 85% plan to replace U.S. goods with domestic alternatives.
- Four in five are committed to increasing their purchases of locally made products.
- Three in five say they intend to boycott U.S. products.
“For the four in five Canadians planning to buy more domestic goods, grocery stores appear to be ground zero for this trend,” the Angus Reid Institute stated in a press release summarizing its findings from a survey of over 3,300 adults conducted from February 16 to 18.
Other top categories where Canadians are shifting their spending include snacks and soft drinks, clothing, and alcohol.
Nearly half of Canadians also said they are cancelling or delaying travel to the U.S.
A survey by Interac Corp., conducted from February 6 to 9 with 1,500 Canadians, also found growing support for local shopping. According to the results:
- 79% of respondents said buying local feels more important now than it did a year ago.
- Just over half cited patriotism as a key motivation for purchasing Canadian-made products.
- Slightly more than half were willing to pay an extra $5 for a local product.
- Over a third said they would pay an additional $10 to support Canadian businesses.
“Amid the current climate of economic uncertainty and evolving tariff threats, Canadians are reassessing their spending habits,” said Debbie Gamble, chief strategy and marketing officer at Interac.
“Our survey results confirm that Canadians are making deliberate choices with their purchasing power—opting to support local businesses, even if it means paying a bit more.”
