Since promising, and then eventually unleashing, sweeping tariffs that have upended economic stability and eroded international allyship (1), Donald Trump’s trade war with Canada has prompted Canadians to fight back with their wallets and focus their purchasing power on domestically-made products.<\/p>\n
However, as we enter the first holiday season since these tariffs were implemented, shoppers who exclusively buy Canadian will have their resolutions tested by a rising cost of living.<\/p>\n
A self-described \u201cvery proud Canadian,\u201d Ann-Marie Brooking has been leaning into buying Canadian products, she tells CBC News (2). As she approaches the holiday season, her resolve has only galvanized, but factors other than Canadian patriotism weigh on her mind.<\/p>\n
\u201cJust with the cost of living, our bills, maintaining homes, grocery prices, the added expenses of putting our children in sports, for example, all of those factors obviously come into play,\u201d Brooking told CBC.<\/p>\n
Brooking\u2019s concerns about the cost of living are well-founded. Grocery prices have ballooned 3.4% since last October and shelter costs are up 2.5% over the same period, Statistics Canada reported (3). As people spend more on necessities like groceries and shelter costs, the less they have for discretionary costs like buying gifts and spending on holiday travels.<\/p>\n
Inflation is going to test shoppers who are keen on supporting Canadian businesses and products this holiday season, but so far many are holding strong \u2014 so long as they don\u2019t face massive price swings. The Retail Council of Canada\u2019s 2025 Holiday Shopping Report (4) found that 84% of Canadians plan to \u201cseek out Canadian-made products,\u201d but \u201cprice and perceived value still drive final purchasing decisions,”<\/p>\n
\u201cOver 60% told us that price is going to be the number one factor,\u201d Jim Cormier, Atlantic director for the Retail Council of Canada, told CBC.<\/p>\n
The survey was conducted in October 2025, and since then, it appears Canadians have become even more cost-sensitive.<\/p>\n
Read more: Here are 5 expenses that Canadians (almost) always overpay for<\/a> \u2014 and very quickly regret. How many are hurting you?<\/p>\n The latest BMO Real Financial Progress Index, completed in November 2025, found that 61% of Canadians are adjusting their holiday spending plans \u201cin anticipation of rising costs caused by tariffs (5).\u201d More specifically, 41% plan to allocate less to holiday purchases, while 25% expect to spend more on food and groceries this season.<\/p>\n Statistics Canada recently reported that the cost of groceries is outpacing the cost of all other items in its consumer price index combined. Grocery prices alone are causing people to adjust their holiday budgets.<\/p>\n Canadian employment is also suffering, which harms families\u2019 spending power. The employment rate is the lowest it has been since January 2018, excluding the pandemic years (6). As less people work, the less money they have to indulge in non-essential purchases.<\/p>\n With over half of Canadians adjusting their spending patterns due to cost concerns, you might be wondering if you can afford the holidays this year. Thankfully, there are a number of easy, actionable steps you can take to help ease some of your financial stress.<\/p>\n Budget around your key financial goals. Instead of spending during the holidays on a whim, figure out your most important financial goals (e.g. retirement, saving up for a home, building emergency savings) first and then budget for holiday spending. This way, your major financial milestones don’t get pushed aside.<\/p>\n Shop strategically. Don\u2019t shop without knowing what deals are available \u2014 it\u2019s important to take advantage of any savings while they last.<\/p>\n Think outside the giftbox. There are multiple ways to give thoughtful gifts without spending a dime. If you\u2019re tight on cash, consider making a gift or creating a memorable experience for someone instead.<\/p>\n Between the tariff wars with the U.S. and the rising cost of living, you may feel the need to cut back on holiday spending this year. But that doesn\u2019t mean having to buy non-Canadian products or skimping on the holiday cheer altogether. It just means being more strategic with your spending and finding unique ways to create lasting memories with your loved ones.<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Associated Press (1<\/a>); CBC News (2<\/a>); Statistics Canada (3<\/a>, 6<\/a>); Retail Council of Canada (4<\/a>); BMO (5<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Since promising, and then eventually unleashing, sweeping tariffs that have upended economic stability and eroded international allyship (1),…\n","protected":false},"author":2,"featured_media":345583,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[49,48,150691,4191,41525,119712,44,107809,150690,150692,3321,50],"class_list":["post-345582","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-ca","tag-canada","tag-canadian-products","tag-canadians","tag-grocery-prices","tag-holiday-season","tag-news","tag-purchasing-power","tag-retail-council-of-canada","tag-rising-cost-of-living","tag-spending","tag-statistics-canada"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/345582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=345582"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/345582\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/345583"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=345582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=345582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=345582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}