Calum Green, owner and founder of Canadian streetwear brand Raised by Wolves, in his Ottawa store on Wednesday.Justin Tang/The Globe and Mail
Shoppers are heading into the holiday spending season eager to buy Canadian, a sentiment that the Business Development Bank of Canada says could provide a $13-billion boost to the country’s gross domestic product.
But Canadian shoppers’ patriotism will be tested by their spending power as they head into the most American of retail holidays.
Data released ahead of Black Friday by BDC, which provides financing, advice and capital to small and medium-sized businesses, found that Canadian households will spend an average of $943 on holiday shopping this year – roughly the same as last year.
Nearly 60 per cent of that money will be set aside for Canadian products and services, which BDC estimates would contribute up to $11-billion to Canada’s GDP. If every household pledged to spend an additional $100 on Canadian goods, the impact could jump to $13-billion, the Crown corporation found.
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BDC chief economist Pierre Cléroux said the study shows consumers have a stronger intention to buy Canadian this year as compared to last. He added that in 2024, people were less “concerned” with buying Canadian products.
The survey of 1,500 Canadian adults, aged 18 years or older, was conducted online between Nov. 12 to 16 this year.
The origins of Black Friday date back to the 1960s, when shopping crowds and tourists first started flocking to stores for deals the day after American Thanksgiving. Today, it’s a major revenue driver and indicator of financial health for retail businesses across the board. It also launches the busy holiday shopping season.
“It’s about 20 per cent of what Canadians are going to spend annually – it’s huge,” said Mr. Cléroux of holiday spending.
For jewellery and leather goods sectors in particular, holiday season shopping can make up as much as 26 per cent of retail sales, he said.
But those tracking Black Friday and holiday shopping trends across Canada say consumers are becoming more cautious with their spending than they have been in previous years. That shift has rippled through the Buy Canadian movement, since locally made products often come with a markup.
“A T-shirt is a basic garment, sure, but there are far more steps involved in the process than you would imagine,” said Cal Green, founder and owner of Ottawa-based apparel company Raised by Wolves. “When all of those steps are taken locally or domestically, where the minimum wage is significantly higher than where the average T-shirt is made, that’s going to affect the cost of the garment.”
Raised by Wolves saw a 5- to 10-per-cent bump in Canadian sales at the height of Buy Canadian momentum, Mr. Green says.Justin Tang/The Globe and Mail
PwC’s 2025 Canadian holiday outlook found that shoppers are planning to spend 10 per cent less this year than last. Yet, the desire to buy Canadian remains strong.
Nearly half of respondents “said they would choose a Canadian product even if it was more expensive than an imported one,” said Elisa Swern, head of consumer markets at PwC Canada.
That sentiment was strongest among baby boomers, with around two-thirds of those respondents saying they were willing to buy a more expensive, Canadian product. However, 62 per cent of Gen Z respondents – who face a tough labour market – said they would opt for a cheaper imported product.
“There were definitely some customers that appreciated our stuff was made in Canada, but that was a little short-lived,” said Mr. Green. “Made in Canada products aren’t cheap.”
At the height of Buy Canadian momentum earlier this year, Mr. Green said his company saw a 5- to 10-per-cent bump in Canadian sales, peaking in August after U.S. President Donald Trump scrapped the de minimis exemption on shipments of goods into the U.S. with a value of US$800 or less.
But the patriotic sentiment hasn’t offset the economic damage, said Mr. Green. American customers once accounted for about 25 per cent of Raised By Wolves’ sales, and as much as 50 per cent in recent years. Those numbers fell more than 5 per cent – amounting to tens of thousands of dollars – after the exemption was removed, throwing cross-border shipping into chaos.
Mr. Green said that despite being made in Canada, some of his products don’t qualify for preferential treatment under the United States-Mexico-Canada Agreement. “If the fabric is from Portugal, for example, but the yarn itself is from China, then from a customs perspective, the garment…wouldn’t qualify for the same duty treatment that a wholly made-in-North-America garment would.”
There’s also a mismatch between increasingly budget-conscious consumers and Canadian retailers hoping to offer smaller discounts this holiday shopping season to offset economic headwinds and the higher costs of domestic production.
“We used to be a no-discount kind of brand,” said Jonathan Laplante, general manager at Ottawa-based mattress and bedding manufacturer, Obasan. However, he said, “businesses are forced to participate, in a way.”
Jonathan Laplante, general manager of Canadian organic mattress company Obasan, at the company’s production facility in Ottawa on Wednesday.Justin Tang/The Globe and Mail
Still, companies such as Obasan, whose target consumers are older and have access to more discretionary funds, say the Buy Canadian fervour might be stronger than ever. Obasan’s sales have increased 15 to 20 per cent, year over year – its October purchases jumped by nearly 40 per cent.
For most businesses though, the Buy Canadian movement seems to be colliding with a harsher economic reality. “Canadian customers are quick to say they support Canadian businesses, but they might not be able to speak with their wallet,” said Mr. Green.