Ice cream to defence: How Canada’s tariff war with US is boosting local businesses
Canadian businesses are experiencing a surge in sales as consumers shift toward local products in response to ongoing trade tensions and tariffs with the United States. Companies like Chapman's ice cream are actively replacing American suppliers to mitigate the impact of the trade war.
Why it matters
This illustrates the real-world economic impact of protectionist trade policies on local supply chains and consumer behavior.
The US and Canada are embroiled in a tariff war, and it may “will come at a cost” for Ottawa as the Canadian PM Mark Carney had warned. But the fight is proving a win for at rather unusual sectors: from the ice-cream counter and gift shops to wineries and even defence manufacturing.As American goods face fresh Canadian tariffs, local businesses have seen an uptick due to the “buy Canadian” wave.Prime Minister Mark Carney has warned that moving away from the US as Canada’s biggest trading partner “will come at a cost,” adding that the counter-tariffs on American goods “are necessary to protect our workers”.The new Canadian levies cover nearly C$28 billion ($20 billion) of American products, ranging from steel and furniture to cotton T-shirts, with tariffs as high as 50%.Local products in the basketFor Chapman’s, Canada’s largest independent ice cream manufacturer, the trade tensions have coincided with some of…
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