In the aftermath of the trade conflict instigated by U.S. President Donald Trump through imposing tariffs, Prime Minister Mark Carney forewarned that Canada’s long-standing ties with the U.S. were on the brink of change – a prediction now supported by concrete evidence.
Datasets scrutinized by CBC News across various domains such as travel, trade, shopping, and cultural consumption all indicate a consistent trend: Canadians are noticeably distancing themselves from the U.S.
Despite the passage of time since Trump initiated the trade dispute and incited a domestic backlash with his provocations about a potential “51st state,” the Canadian populace continues to boycott cross-border travel extensively. This has resulted in airlines canceling U.S. flights and reducing capacity to cater to the dwindling demand.
Concurrently, Canadian exports to the U.S. have dwindled, while exports to other non-U.S. international markets have experienced a surge. This shift may intensify as the government rushes to finalize new trade pacts and facilitate businesses in leveraging existing agreements.
The grassroots movement advocating for “Buy Canadian” has led to a fundamental transformation in the retail sector, with grocers opting to eliminate certain U.S. products entirely and embracing numerous domestic suppliers instead.
Furthermore, alterations are discernible in Canadian cultural consumption patterns post the economic skirmish instigated by Trump, with a noticeable uptick in viewership and sales of homegrown content. Notably, Canadian-authored books are witnessing a substantial surge in demand.
Polls indicate a growing support for certain Canadian institutions, particularly favoring the monarchy over U.S.-style republicanism, following a high-profile visit by King Charles.
Describing Trump’s actions as a “rupture” to the global order necessitating a fresh perspective, Carney highlights that Canadians are spearheading this transformation, a sentiment echoed by the populace.
Trump’s envoy to Canada, Pete Hoekstra, has acknowledged the shift in Canada’s sentiments towards the U.S., emphasizing the noticeable divergence in passion for the relationship compared to the American side.
Travel, in particular, showcases the most tangible evidence of the evolving Canada-U.S. dynamic. Recent data underlines a significant decline in Canadian visits to the U.S., extending beyond a mere slump. Statistics Canada figures reveal a sharp 34% drop in Canadian residents returning from the U.S. by car in August compared to the previous year.
This downward trajectory has persisted for the eighth consecutive month, marking an unprecedented trend outside the COVID-19 pandemic. Air travel from the U.S. to Canada has also witnessed a substantial 25.4% decrease in August.
Moreover, U.S. border data further underscores the substantial disruption in cross-border movements, with a notable decrease in crossings from Canada. Major Canadian airlines have responded by suspending several Canada-U.S. routes and reducing service frequencies to certain destinations.
Amidst these shifts, there remains a robust demand for international travel to non-U.S. destinations, with Air Canada expanding its international routes by 28 this year, catering to the growing inclination towards Europe, the Caribbean, and South America.
The U.S. Travel Association highlights the significant economic impact of Canadian tourists on the U.S., underscoring the potential ramifications of the declining Canadian visits on U.S. employment and trade balance.
In the realm of trade, Trump’s tariff imposition on Canadian goods has reshaped the export landscape, leading to a 2% drop in Canadian exports to the U.S. this year. This decline, amplified by tariffs, translates to a substantial $5 billion blow to exports.
As hopes for a swift resolution to the U.S. trade conflict diminish, Canadian businesses are swiftly diversifying into new markets and rekindling old trade relationships, with the UK emerging as Canada’s second-largest export market this year.
Exports to the UK have surged by 63%, displacing China, with a notable increase in various sectors, including advanced technologies, energy, critical minerals, infrastructure, transportation, and agri-food products.
Furthermore, exports to Europe have risen by 26% this year, with the recent Canada-Germany agreement signaling a potential deepening of ties with the Old World. Canadian businesses are also expanding trade ties with Central and South American countries.
The “Buy Canadian” movement has reverberated in the retail sector, driving substantial changes. Sales of Canadian-authored books have surged by 25%, while U.S. alcohol sales have dwindled significantly due to many provinces opting not to stock American products.
Counter-tariffs imposed by Canada have heightened prices of certain U.S. goods, leading to a decline in sales volumes, while boosting sales of Canadian products. Supermarket chains like Loblaw Companies have onboarded over 100 new Canadian suppliers to meet the burgeoning demand for domestic goods.
In the cultural domain, Canadians are displaying a renewed interest in homegrown content, evident in the increased viewership of Canadian productions across various platforms. Notable spikes have been observed in viewership for popular Canadian shows and events like the