From restaurants to farmers’ markets, Canadians are increasingly choosing local
Canadian consumers are redirecting their wallets toward local merchants in response to shifting global trade pressures.
New figures from Interac Corp. show that small and medium-sized businesses recorded 15 million more Interac Debit transactions between April and July 2025 compared to the same period last year, and for the first time in years, SMBs outpaced larger retailers in year-over-year volume growth during that four-month stretch.
“Earlier this year, consumers told us they intended to shop more locally in light of tariffs and they’ve followed through,” said Debbie Gamble, group head, chief strategy & marketing officer at Interac. “While larger merchants have traditionally led in Interac Debit volume growth, small and medium businesses are now growing their volume at a faster rate. Our summer data snapshot shows Canadians are using their spending power with great intention, responding to global pressures through where they shop, what they buy and how they choose to pay.”
The Canadian Federation of Independent Business says that small firms are taking the brunt of ongoing trade tensions with 59% of SMEs hit by US and Canadian tariffs on steel and aluminum, while 58% are feeling the squeeze from Canada’s own retaliatory tariffs on US goods.
The Interac survey found almost eight in ten Canadians have shifted at least one monthly purchase from a big-box or international retailer to a Canadian business since tariffs were first announced. A quarter reported redirecting three to five purchases a month, while one in five said they’ve switched six or more.
Restaurants have seen the sharpest impact. From April through July, SMB restaurants experienced double the volume growth of chain competitors. Convenience stores and tourism-related small businesses also benefitted from the pivot.
Two-thirds of respondents said affordable treats help lift their mood, and 59% said it feels even better when those purchases support local. Compared to last summer, 42% reported spending more at farmers’ markets, 30% at local bakeries, and 21% on premium jams, sauces and honeys.
The preference for Canadian-made goods remains strong, with 70% of shoppers checking product labels for domestic origin and if a Canadian option isn’t available, 65% said they prefer goods made outside the US.
Ottawa recently announced that it was removing retaliatory tariffs on US goods, a move welcomed by the CFIB.
“Many small business owners have told us that Canada’s retaliatory measures were almost as damaging as the US tariffs themselves,” said Corinne Pohlmann, CFIB’s EVP of Advocacy. “Nearly six in 10 small firms report they were hurt by Canada’s counter-tariffs, with only steel and aluminum tariffs doing more harm.”
