Why the U.S.

Why the U.S.-Canada trade war could present a 'sweet spot' for Toronto businesses

New 50% U.S. tariffs on Canadian goods came into effect Aug. 22, more tariffs being threatened

As the Canada-U.S. trade war continues, some Toronto businesses are seeing a renewed appetite for Canadian-made products.

Owners say at a time when operating a business is especially costly and full of uncertainty, the support goes a long way.

Daniel Naraine and his wife, Liana, opened City Cottage Market during the COVID-19 pandemic, with the goal of supporting local chefs and small food producers by selling only products made in Canada.

“When we started, it was more of a niche,” Naraine said, adding the all-Canadian aspect wasn't especially trendy at the time.

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Now, he says, customers are actively seeking out Canadian products.

New 50 per cent U.S. tariffs came into force on Aug. 22 after the most recent round of trade talks fell through. Naraine is among the businesses owners who say the trade war has created an opportunity for smaller Canadian producers to get more attention.

“They’re going through the same struggles," he said of other local businesses. "But it’s also that same sweet spot where now the focus is on them and the focus is on us."

City Cottage has grown to three larger locations, and Naraine says he expects the focus on local producers to continue.

Shifting focus to Canadian business a necessary move

For Toronto clothing company Mini Mioche, the shift toward Canadian consumers has been driven in part by necessity.

The company has been making clothing in Canada since 2008, but CEO Jacquelyn Corbett says when tariffs hit, the company’s U.S. business — which represented about half of its business — was severely affected.

“When the trade war first hit, we immediately saw our U.S. business tank,” Corbett told CBC Radio’s The Current.

The company responded by launching an adult collection and changing its strategy to focus more heavily on the Canadian market. It also recently opened a store in Toronto.

Corbett says consumers don’t need to make a huge change to have an impact on small businesses. Every purchase and recommendation means a lot to entrepreneurs.

“I need 10 people to make a different choice every day and that is make or break for my business,” she said.

Brydon Parker, who runs Made in Canada, an online directory that lists products and verified brands made by Canadian businesses, says visitors to the site have jumped from around 100 to 14,000 in the past week.

He says the increase reflects Canadians looking for ways to support businesses at home.

“I think Canadians understand that we’re in the midst of a trade war with our biggest ally and trading partner,” he said.

“We understand that this will cause Canadian businesses to suffer and everyone is eager to help out their fellow Canadians as much as possible.”

Toronto condiment company Zing Pantry Shortcuts, which focuses on globally inspired sauces, condiments and seasonings, has also made a significant shift.

Before the tariffs, co-founder and CEO Jannine Rane says the company was seeing strong organic growth in the United States, selling directly to American consumers and through independent retailers.

But when tariffs hit, the company stopped exporting to the U.S. and instead focused on expanding across Canada.

A year later, Zing Pantry products are now sold in every province, including at Sobeys and Safeway locations across the country. Rane says focusing on Canada was a deliberate decision, even though it could ultimately mean slower growth.

“I’m OK with growing a little bit slower because I truly believe in the types of products and the company that we’re building.”

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Naraine hopes both for businesses like his and the ones that have shifted to focus on Canadian products and sales, that the momentum is here to stay.

"This isn't just a phase or a movement. This is something we really need to lean into. Otherwise, you're going to lose all of these brands."

Talia Ricci is a TV, radio and web reporter at CBC Toronto. She enjoys covering offbeat human interest stories and exposing social justice issues. Talia has also reported in London, Ont. and Winnipeg, Man. You can email story ideas to talia.ricci@cbc.ca.