From government leadership changes to a trade tit for tat with the U.S., it’s been a tumultuous few months in Canada. And now, Canadians are reacting with their wallets.

Just a few weeks after former Prime Minister Justin Trudeau announced his resignation in January, the Trump administration began threatening tariffs on Canadian goods coming into the U.S. As of this writing, Canada is facing a 25% tariff on steel and aluminum heading south of its border, a 25% blanket tariff on everything that’s not USMCA-compliant (a reprieve that will potentially only last until April 2) and possible additional repercussions from “reciprocal tariffs” the White House is threatening to place on a host of countries, also in line to be implemented on April 2.

On March 27, U.S. President Donald Trump signed an executive order to place 25% tariffs on imported vehicles – approximately 45% of cars on U.S. roads come from Mexico and Canada. Canadian Prime Minister Mark Carney, appointed earlier this month after Trudeau’s resignation, has called this new round of levies “a direct attack” on Canada and its auto workers. If the Liberals win in the upcoming snap election, Carney will keep his position.

Here's where things stand on proposed port #fees & more #tariffs possibly arriving April 2 that could contribute to #promoproducts price increases, complicate #sourcing and negatively impact the #economy.https://t.co/YaL8tRvRZN

— Chris Ruvo (@ChrisR_ASI) March 24, 2025

Before Trump’s inauguration and as Trudeau stepped aside, the momentum was undoubtedly behind the Conservatives in Canada, specifically Pierre Poilievre, a member of the House of Commons. Over the past three months, that lead over the Liberals has narrowed considerably; some analysts say the Liberals may have overtaken the Conservatives ahead of the snap election Carney called for, now scheduled for April 28.

“It’s a coin toss right now,” says Scott Hulbert, managing director of distributor ideavation (asi/229801) in Richmond Hill, ON. “Things changed so fast – Carney is looked at as a political outsider and he called for an election to use the momentum he’s got. It’s all the same people from the past eight years in the government, and yet things have shifted so quickly.”

‘Tariff Whiplash’ & a Made-in-Canada Preference

Before Canadians are asked to decide on their next prime minister in a month, promo products pros, as well as importers and their representatives, have been busy contending with tariff whiplash and educating clients on what to expect. In early January, sales were humming along, says Paul Wieleba, owner of multi-line agency {WE} Promotional Advertising and board chair for Promotional Product Professionals of Canada. By the next month, the situation was very different.

“We had a tremendous January,” he says. “February was one of the most challenging months I’ve experienced, akin to the pandemic. March is looking strong again, but overall I expect marginal growth for this quarter.”

In addition to the tariff wrangling, there’s what Canadians consider a threat to their sovereignty – Trump has repeatedly called Canada “our 51^st state,” implying that the U.S. could possibly annex the country. As such, some Canadians are boycotting the U.S. out of anger. Promo companies are seeing this angst manifest in product preference.

“We had a tremendous January. February was one of the most challenging months I’ve experienced, akin to the pandemic. March is looking strong again, but overall I expect marginal growth for this quarter.” Paul Wieleba, {WE} Promotional Advertising

“Our Canadian end-buyers want to buy Canadian, or they want a product that’s at least decorated in Canada,” says Hulbert. “They want Canadian employees to benefit. They now have a greater tolerance for Chinese-made products from a Canadian supplier versus an American supplier, and that’s all happening in just the last few weeks.” Some clients have even decided to add a small maple leaf logo in a secondary location on their promo, particularly apparel, as a symbol of support for their home country.

Hulbert says Canadians’ “disdain” for the U.S. is palpable – cross-border tourism has decreased and American products remain on shelves. “It’s the ‘51^st state’ talk and we’re tired of it,” says Hulbert.

Steve Levschuk, president and CEO of London, ON-based Talbot Promo (asi/341500) and Counselor’s 2021 Lifetime Achievement Award honoree, says Canadian end-buyers’ movement away from American suppliers is ramping up. “The tariff uncertainty coupled with the disrespect the U.S. president has shown towards Canada has made this shift larger than it might otherwise be,” he shared this week.

Wieleba says that he’s being asked detailed questions about suppliers’ ownership structures, since distributors want to present products that are Canadian-made or as close to it as possible.

“Our Canadian end-buyers want to buy Canadian, or they want a product that’s at least decorated in Canada. They want Canadian employees to benefit.” Scott Hulbert, ideavation (asi/229801)

“I’m having to over-communicate and advocate for my Canadian suppliers,” he says. “My product knowledge sessions now begin with a review of my suppliers’ operations, and generally finish with quotes of made-in-Canada products that I sell.”

End-buyers in Canada are also asking distributors to explore tariff workarounds. “They’re inquiring more than ever about where the product is coming from,” says Levschuk. “It’s an extra layer of complication and uncertainty for our company. All of this, combined with the president’s bombastic disrespect towards its number-one trading partner, has made Canadians galvanize in a way I’ve never witnessed before.”

Slowing Promo Business?

Meanwhile, possible business loss due to tariffs is weighing on the Canadian economy. Already, in the face of a mounting trade war with the U.S., workers in the steel and aluminum industries in Canada have been laid off, the real estate market has cooled and the unemployment rate remained stagnant between January and February, at 6.6%.

“U.S. policies are also having an emotional impact,” says Wieleba. “I work in a manufacturing-dense territory, and there are significant worries of job loss and inflation. I think Q2 will be unstable as we transition through changes in leadership and uncertainty over what’s next with the U.S. I’m optimistic that we’ll have a stronger second half of the year, with a clearer vision of our response as a nation to tariffs and other influences.”

Among some of Hulbert’s clients, the strained economy and the uncertain political landscape have made them cautious with spend as they await what comes next. For other end-buyers, demand for promo is still high, though Hulbert and his team continue to come up against static budgets that haven’t expanded to allow for cost increases. At the moment, winter campaigns are on the books and spring/summer projects have yet to ramp up.

“Overall, people are waiting to see what happens with the election,” says Hulbert. “It feels like the economy has stalled, and there’s caution with hiring and financial commitments. There’s some trepidation and an acceptance that things might get worse before they get better.”