Are you paying more than before to buy Canadian? Experts say it's complicated

In late January, then-prime minister Justin Trudeau and the country's premiers urged people to "choose Canada" by purchasing Canadian products amid the growing threat of U.S. tariffs.

"There are many ways for you to do your part," Trudeau said on Jan. 22. "It might mean checking the labels and picking Canadian-made products."

With U.S. tariffs now in place and counter-tariffs in effect, shoppers who took that message to heart are scrutinizing labels — and, at the same time, many are asking the question: Is there a premium on patriotism? Marketplace has received dozens of messages in recent weeks from consumers wondering if they're now paying more for the same products because they're, to varying degrees, Canadian.

"I would like an investigation [to see] if 'Buy Canadian' is just another fancy marketing tactic," wrote one user on Reddit.

Another sent us an email saying they feel like "Canadian items have gone up in price, some seem to increase weekly."

So Marketplace analyzed the prices of thousands of grocery products labelled as Canadian at one downtown Toronto Loblaws store from the start of the year. 

While nine out of 10 products remained the same price — and about two per cent decreased in price — Marketplace found the regular price of hundreds of products have increased since governments put out the call to buy food made in Canada. Some are from Canada's most iconic brands, including Tim Hortons, St-Hubert, Swiss Chalet and Chapman's.

Marketplace spoke with several economists who all said it's impossible to know for sure if a premium is being applied as demand soars at home for Canadian products, because many factors — like how processed an item is and whether it's affected by U.S. levies — are at play when it comes to pricing. They came to different conclusions about whether the demand for Canadian products might explain the price hike. Manufacturers say it's the grocers who decide the price tag and the grocer, Loblaw, denies raising grocery prices due to the demand to buy Canadian.

But Colin Mang, an assistant professor of economics at McMaster University, said it's clear people want to buy Canadian products. He points to a recently published survey of 9,788 Canadians conducted by Caddle for Dalhousie University in Halifax, which found that roughly 60 per cent of respondents were willing to pay a premium for Canadian products over American alternatives.

According to Mang, that gives retailers an opening to raise prices.

"Consumers, when they see that little Canadian flag next to the product, I think that really increases their desire to have that product," he said. "There's this big 'Buy Canadian' movement and Canadian manufacturers and retailers are poised to take advantage of that. They can charge higher prices."

Loblaw, which owns several grocery banners, including No Frills, Fortinos, Independent, Real Canadian Superstore and Zehrs, said it started rolling out the maple leaf logo online and in stores in early February to indicate whether products were prepared in Canada.

Marketplace found that between Feb. 3 and Feb. 10, multiple Tim Hortons products at the Loblaws store rose in price.

One hot chocolate mix jumped from $15.99 to $17.99. The same Tim Hortons hot chocolate mix also increased in price twice on Voilà, a food delivery platform owned by Sobeys operating in the GTA, in late March and early April.