Q1 2025 may mark a turning point in Canada-US relations, as a trade war initiated by President Trump has shaken confidence on both sides of the border. There is still a lot of uncertainty about the timing and scope of US tariffs as well as countermeasures by Canada. But longer term, brands and retailers in Canada need to explore alternative suppliers and develop markets further afield.

Key Question: How does a trade war affect Canada's economy, especially for brands and retailers with a heavy reliance on US suppliers and customers?

Key Stat: In response to the trade war, 61% of shoppers in Canada intend to buy only domestic products.