The “Elbows Up” Economy: How Trump’s Policies Are Reshaping Canadian Identity and Trade
A quiet revolution is underway in Canada. Driven by perceived U.S. Aggression – from tariffs to sovereignty threats – Canadians are increasingly turning inward, prioritizing domestic products and experiences. What began as a patriotic swell in 2025 is solidifying into a significant shift in economic behavior, impacting everything from grocery shopping to vacation plans.
From Patriotism to Purchasing Power: The Rise of “Buy Canadian”
For many Canadians, the decision to support local businesses is no longer simply a matter of national pride, but a deliberate economic and political statement. Lisa Mcbean, an Ontario resident, exemplifies this trend. She now actively checks product origins before purchasing and has cancelled trips to the U.S. Due to concerns over President Trump’s policies. This isn’t an isolated case. Polling data from Leger indicates a steadfast commitment among Canadians to avoid supporting U.S. Businesses “in any shape or fashion.”
The Bank of Canada has taken notice, beginning to track consumer spending on American goods and U.S. Travel in its flagship consumer survey. Data reveals a significant shift: more than three out of five Canadians reported avoiding U.S.-made alcohol or produce in January 2026. Over half are actively trying to avoid U.S.-based retailers and websites.
Economic Ripples: Trade, Tourism, and Investment
The impact extends beyond individual consumer choices. Canada was the second-largest U.S. Trade partner in 2025, but economists warn that relationship is becoming strained. Imports from the U.S. Hit record lows last year, excluding pandemic-related disruptions. Canadian return trips from the U.S. By air plunged almost 18% in the year through January, and car crossings decreased by nearly 27%.
The tourism sector is feeling the pinch. Destinations in the U.S., like Las Vegas and Vermont, are reporting fewer Canadian visitors. Jay Peak in Vermont has seen a notable decline in Canadian school trips and hockey tournaments. Even Folk Alliance International, a music industry conference, noted a significant drop in Canadian attendance and sponsorship.
While Canadians still recognize the importance of U.S. Financial markets and its consumer base, a sense of economic independence is growing. A preliminary trade agreement reached between Canada and China in January 2026 signals a diversification of economic partnerships.
Beyond Economics: A Shift in National Identity
The “elbows up” movement – a reference to a hockey stance symbolizing defense and resilience – has grow a powerful symbol of Canadian resistance. Businesses are adapting, too. Great American Backrub in Toronto is considering a name change to distance itself from U.S. Affiliation, reflecting a broader sentiment that “anything American” no longer holds the same appeal.
Prime Minister Mark Carney’s electoral victory in 2025 was widely interpreted as a referendum on Trump’s policies. His subsequent actions, including a global tour to strengthen trade alliances and a deliberate omission of the U.S. From his itinerary, underscore Canada’s commitment to forging its own path.
What’s Next? Renegotiations and the Midterms
Canadians are closely monitoring the renegotiation of the Canada, United States, Mexico Agreement (CUSMA) and the outcome of the U.S. Midterm elections in November 2026. A change in Congressional leadership could potentially limit President Trump’s influence and ease tensions.
Despite the current friction, many Canadians acknowledge the enduring economic ties between the two countries. However, the prevailing sentiment suggests that the relationship has fundamentally changed. As one Ontario resident put it, it feels like Canada is on a “time out.”
Frequently Asked Questions
- What is the “Elbows Up” movement? It’s a grassroots movement in Canada symbolizing resistance to U.S. Tariffs and sovereignty claims, encouraging Canadians to support local businesses and products.
- How are Canadians changing their spending habits? Canadians are increasingly choosing Canadian-made products, cancelling trips to the U.S., and diversifying their travel destinations.
- What impact are these changes having on the Canadian economy? The Bank of Canada is tracking these shifts, and data shows a structural change in the national economy with increased support for domestic industries.
- Is this a permanent shift? Polling suggests that Canadians remain steadfast in their commitment to supporting their own economy, and the altered behavior is not expected to change anytime soon.
Explore further: Discover more about Canada’s economic outlook and trade relationships on the Bank of Canada website.
