Oct 6, 2026
Since the latest round of U.S. tariffs, 7 in 10 Canadians say they’re buying more from local businesses, according to a new survey from Meridian Credit Union, Ontario’s largest credit union. Even more (77%) say it’s their way of “standing up for my community in the face of US tariffs.”
But shoppers aren’t viewing things through rose-colored glasses — 75% expect the next two years to be a rough ride for local small businesses.
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That puts a lot of families in a tough spot: you love having the local bakery, hardware store, or bookshop down the street, but your own wallet is feeling the squeeze. Here’s a look at what’s driving that pressure — and how you can stretch your dollars to still support local.
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Why are local shops bracing for a rough 2 years?
The trade fight has escalated. President Donald Trump imposed tariffs on nearly $28 billion worth of Canadian goods in August, and Ottawa replied with retaliatory tariffs on American products.
Small business owners are feeling the pinch. The Canadian Federation of Independent Business (CFIB), Canada’s largest association of small and medium-sized businesses, says its long-term optimism index fell nearly 10 points to 47.9 in September. Anything below 50 means more business owners are bracing for a slump than expecting growth. In fact, nearly half of small businesses (49%) said weak demand was their biggest obstacle to growing.
Meridian’s respondents see a longer-term strain too: 72% agree it’s harder for small businesses to grow than it was 10 years ago. Out of the 1 in 3 people who’ve thought about starting a business, 56% say the economy has forced them to put those dreams on ice.
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Is a ‘buy local’ burst enough to keep them open?
Probably not on its own. When low demand is the main problem, a quick shopping boost after a news spike helps, but what business owners really need is steady, reliable sales to pay for rent, payroll and inventory every month.
There’s also a cost to you. Small firms plan to raise prices by an average of 3.3%, up from 2.6% in August, according to the CFIB. If buying local costs a bit extra, that support has to actually fit into your monthly budget — good intentions alone won’t cover it.
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Shoppers remain hopeful, though. Of those surveyed, 58% believe local small businesses “will ultimately emerge stronger than ever.” Paul Casey, Meridian’s director of small business, said in a statement, that the credit union sees “a tremendous amount of creativity and resilience” among its small business members.
How can you support local without blowing your budget?
Give local spending its own line
Instead of buying extra stuff, just shift the spending you’re already doing — like groceries, coffee, haircuts, or gifts — over to local spots. Pick a monthly amount you can comfortably stick with, and track it just like the rest of your budget.
Read the label before you pay a premium
Not every maple leaf means what you think. According to the Canadian Food Inspection Agency (CFIA), the federal regulator for food labelling, “Product of Canada” on food means all or virtually all ingredients, processing and labour are Canadian. “Made in Canada” means the last substantial transformation happened here, even if ingredients were imported.
For non-food goods, the Retail Council of Canada, an industry association for retailers, notes “Product of Canada” requires at least 98% of production costs to be Canadian, versus 51% for “Made in Canada.”
Keep in mind that even if a local shop sells imported stuff, it still hires your neighbours and pays rent in your community. “Buying local” and “buying Canadian” often go hand in hand, but they aren’t quite the same thing.
Buy, but don’t stock up on gift cards
Buying gift cards gives a small business immediate cash, which is a big help. Just keep in mind that if they go out of business, you could lose that money — so stick to amounts you know you’ll use right away
Offer support that costs nothing
Online reviews, referrals and sharing a shop’s social posts can bring in new customers without touching your wallet.
What to do now
- Pick three local businesses you’d miss most and make them your first stop
- Set a monthly local spending amount and track it
- Check “Product of Canada” versus “Made in Canada” before paying more
- Ask your favourite shops how you can best support them, including how they prefer to be paid
- Keep gift card purchases small
- Leave a review after a good experience
- Ontario business owners: nominations for Meridian’s 2026 Small Business Big Impact Awards, worth $250,000 across 20 businesses, close Nov. 30, 2026
Buying local won’t suddenly solve a trade war, but steady support for the places you rely on can help them survive it. Start with the neighbourhood spots you couldn’t live without, and give them a spot in your budget — not just a place in your heart.
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Amy Tokic is an SEO content editor for Money.ca. She holds a B.A. in Communications from the University of Windsor. Amy is an award-winning author and has been writing professionally for 15 years, publishing articles in the lifestyle and health sectors.
