Market Data 
- Canadians are turning to Canada-made products amid Trump’s tariff threats and 51st state comments.
- The surge in demand has come with a rise in complaints about potential mislabeling scams.
- The Canadian Food Inspection Agency says complaints increased by 1000% between January and February.
President Donald Trump’s tariff threats and repeated comments about Canada becoming the US’s “51st state” have fueled a surge in popularity for Canadian-made products north of the border. But this has led to a rise in complaints of mislabeling and potential fraud.
According to the Canadian Food Inspection Agency (CFIA), complaints about country-of-origin claims on food labels and advertisements spiked in February, including “Product of Canada” labels.
A “Product of Canada” label means the processing, labor, and at least 98% of a product’s ingredients are Canadian, while a “Made in Canada” label applies to food products where the final “substantial transformation” takes place in Canada. If the ingredients aren’t entirely Canadian, the label must include a qualifying statement.
Data provided to Business Insider by the CFIA shows a 1050% increase in complaints in February compared to January, with 23 complaints, five tied to “Product of Canada” claims. This was up from just two in January and December, and one in November.
Meanwhile, CFIA data for the first five days of March, the latest data available, shows four complaints filed.
The CFIA said reviews of the complaints are underway.
“The CFIA takes labeling issues seriously and wants to know about products that consumers think are labeled in a misleading manner,” the agency said in a statement provided to BI.
The surge in Canadians looking to buy local goods is rooted in the growing trade war.
On February 1, Trump signed executive orders imposing a 25% tariff on most Canadian goods.
Trump’s tariffs first took effect on March 4, prompting Canada to impose retaliatory measures. On March 6, Trump announced a temporary delay on tariffs for USMCA-compliant Canadian goods.
Dylan Lobo, founder of the directory site Made in CA, told BI that traffic to his website surged to record highs on February 1.
Google Trends data reflects a similar story, with searches for “Made in Canada” reaching all-time highs in February.
When US steel and aluminum tariffs came into force on March 12, Canada responded with another round of reciprocal tariffs.
Canadian businesses have reacted, with some grocery chains sidelining American products, small businesses boycotting US products, and Ontario and New Brunswick instructing provincially-owned alcohol retailers to remove US-made alcohol from their shelves.
“Now, more than ever, Canadians have been clear that they want to support Canadian businesses and buy Canadian products,” a CFIA notice to the industry, published on March 14, said.
The notice continued: “The Government of Canada is working with provinces, territories, and industry associations to promote clear, transparent, and accurate product labeling.”
