In late February, Aaron Moscoe, CEO of distributor TPS Promotions & Incentives, made a TV appearance on a Hamilton, Ontario morning show, discussing gift options for employee appreciation programs. The products featured had a particular theme that Moscoe was keen to point out to the show’s host.
“There’s a tremendous spirit and coming togetherness in terms of supporting Canadians right now,” Moscoe said on the show, showcasing a T-shirt that prominently had “Made In Canada” printed on its front side, along with other Canadian-made products.
Moscoe was referring to a growing sentiment that Canadian citizens, consumers and many businesses have adopted, largely in response to President Donald Trump targeting both Canada and Mexico with tariffs.
- On March 4, Trump issued 25% tariffs on both countries, beginning a trade war that has led to retaliatory tariffs from the north and south of the United States.
Trump’s brash messaging and negotiation tactics have upset the sensibilities of many Canadians who feel his rhetoric has been a direct challenge to the country’s sovereignty.
“The mere threat of tariffs and suggestion that Canada become a 51st state has created a sense of national pride and a strong ‘Buy Canadian’ sentiment as Canadians seek to support each other,” Moscoe tells PPAI Media.
Aaron Moscoe
CEO, TPS Promotions & Incentives
Indeed, that sentiment has turned into something of a movement with its own #BuyCanadian hashtag since the tariffs went into effect. Canadian Prime Minister Justin Trudeau addressed his country, the U.S. and the world on March 4, claiming that the tariffs were something the country did not want but also referenced that same pride.
“Canadians are reasonable and we are polite, but we will not back down from a fight, not when our country and the well-being of everyone in it is at stake,” Trudeau said.
Trudeau announced that a $155 billion retaliatory tariff package, which had been delayed due to the 30-day pause, would be reinstated.
- The initial phase of Canada’s tariffs on the U.S. includes an immediate 25% tariff on $30 billion worth of U.S. goods, such as apparel and footwear, pulp and paper, cosmetics and more.
- A second phase, involving an additional $125 billion in tariffs, will be finalized after a 21-day public consultation period and potentially target vehicles, various food, and steel and aluminum products.
‘Keeping Our Goods From Crossing The Border As Much As Possible’
Jen Beldam, founder and owner of distributor Northern Branding Studio in Picton, Ontario, says that, in the early stages of these tariffs, many Canadian businesses feel that the choice to try to avoid American supplies has been made for them by the U.S. government.
Jen Beldam
Founder & Owner, Northern Branding Studio
“Our only option is to continue evaluating options that come from ‘anywhere but America,'” Beldam says. “That’s become a popular slogan up here amongst consumers. We’re keeping our goods from crossing borders as much as possible, including TBD line items on sales orders, and just waiting to see where the chips fall.”
While the tariffs are expected to have a massive negative impact on the Canadian economy, a number of retailers are pointing toward anecdotal evidence that a catalyzing of Canadian pride has shown up with consumers.
“The unprovoked tariff war is now in motion, reinforcing just how interconnected we all are,” Kathy Cheng, founder and president of Toronto-based supplier Redwood Classics Apparel, posted on LinkedIn. “For nearly 40 years, my family has proudly manufactured on Canadian soil, not because it’s the easy choice, but because we believe in Made by Canadians, for Canadians. We are deeply grateful for everything this country has given us, and our commitment to Canadian craftsmanship remains unwavering.
“Canada is resilient. We’ve weathered a global pandemic, adapted to supply chain disruptions and pushed through countless economic shifts. Now, as we navigate these new trade challenges, I believe in the power of Canadian unity to keep us moving forward. This is more than business. It’s about sustaining something bigger than ourselves.”
Larry Winterfeld, sales director of Montreal-based supplier Martini-Vispak, says that the company’s U.S. customers will not incur a significant price increase from the tariffs due to an exchange rate and a Free Domicile arrangement combining to allow the firm to absorb the tariff. However, he makes clear that the customer base in Canada is the company’s priority.
Larry Winterfeld
Sales Director, Martini-Vispak
“Our main focus was and is always with our customers in Canada who we have worked with for the past 25 years,” Winterfeld says. “We could not have reached this stage in our existence without them.”
Even the retaliatory tariffs that Canada has imposed on the U.S. do not cause significant concern for Winterfeld, who says that the country of origin of the materials the supplier imports across the U.S. border would mean the tariffs do not apply.
“We mainly import materials from our USA supply chain that are made-in-China components that we require to make our products, which we can’t purchase direct from China at low volume or are not available in Canada,” Winterfeld says. “We will not pay the 25% tariff for these parts that are made in China and sold through U.S. distribution.”
U.S.-Canada Promo Partnerships Remain Important
The awkward position that Canadian promo pros (and many Canadians, in general) find themselves in means they largely do not perceive the U.S., or at least the individuals and businesses within it, as an enemy.
RELATED: Navigating Tariffs: Strategies For Distributors And Suppliers
“I would not call the ‘Buy Canadian’ sentiment anti-American,” Moscoe says. “Most of us have our American friends and economic relationships. It is more pro-Canada and patriotic than anything else.”
Winterfeld echoes this idea and also establishes that these measures are hurting promo companies on both sides of the border, so productive engagement across countries will be crucial going forward.
“No matter where we live, we have to rely on everyone across our great countries to pull together and support each other whether this lasts for weeks, months or years,” Winterfeld says.
Denise Taschereau
PPAI Board Chair
PPAI Board Chair Denise Taschereau, CEO and co-founder of Vancouver-based distributor Fairware, warns against knee-jerk reactions, particularly, members abandoning companies that operate in Mexico and Canada.
“It’s critical to understand the impacts,” Taschereau says. “Traditionally, tariffs are anchored in country of origin, so your partners in Mexico or Canada who are decorating goods from overseas shouldn’t be impacted. We want to continue to support those brands and uplift them at a time like this.”
PPAI has long supported free trade. Serving members of all political stripes, the Association recognizes the need for policies that strengthen the U.S. economy and support domestic manufacturing. However, any measures – including tariffs – must be implemented strategically to minimize short-term economic disruption while setting the stage for long-term growth. Abrupt cost increases impact businesses of all sizes, from small distributors to global suppliers, ultimately affecting jobs, investment and product pricing throughout our industry.
Drew Holmgreen
President/CEO, PPAI
“We advocate for a thoughtful approach – one that balances economic goals with the realities of supply chain dynamics,” says Drew Holmgreen, president and CEO of PPAI. “With support from our lobbying partners in Washington, we are in ongoing conversations with industry volunteers, trade groups and policymakers with the goal to ensure that any trade policies consider the full scope of their impact and allow businesses time to adapt.”
- Every year, PPAI members and staff travel to Capitol Hill to advocate for the promotional products industry, and tariff concerns will be one of the key issues we will be discussing with members of Congress on April 7-8. (Learn more about LEAD here.)
For questions or suggestions on regulatory or government affairs issues, please contact Rachel Zoch at RachelZ@ppai.org.
