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Daniel Naraine founded his Toronto-based grocery store, City Cottage Market, with a simple goal—supporting local food entrepreneurs. Since opening in 2021, the store, located on Kingston Road near Birchmount Road, has prioritized stocking Canadian-made products to help small businesses grow.
While they occasionally bring in specialty items from abroad, such as Bianco DiNapoli tomatoes and pizza sauces from Northern California, more than 90 percent of the store’s inventory consists of Canadian goods, according to Naraine. He has noticed a surge in consumer interest in local products, especially amid the looming threat of tariffs imposed by U.S. President Donald Trump.
“I think there’s some positivity around this,” Naraine told CTV News. “A lot of local companies are now sharing what percentage of their stock is Canadian, and that’s having a positive impact.”
One advantage of sourcing hyper-local, he explains, is the ability to purchase small quantities from suppliers to test out new Canadian products with customers. However, while the push for buying Canadian is gaining momentum, experts caution that it’s not as straightforward as it seems.
The Complexity of Buying Canadian
Despite the growing support for locally made products, Canada’s food supply chain is deeply intertwined with the rest of North America. Ron Lemaire, president of the Canadian Produce Marketing Association, explains that many food items cross the border multiple times during production.
“In the food and agrifood sectors, a product may travel between countries two or three times during value-added processing,” Lemaire said. “Relying solely on Canadian products presents challenges due to our limited agricultural diversity.”
Although Trump recently agreed to delay planned tariffs on Canadian goods for 30 days, they could still take effect as early as March 4. In response, the City of Toronto has started developing a “buy local” campaign to encourage residents to prioritize Canadian goods over American imports.
However, the definition of “buying local” is not always clear-cut.
What Does “Made in Canada” Actually Mean?
Even when a product is labeled as Canadian, its supply chain often extends beyond the country’s borders. Under federal regulations, a product must have at least 98 percent of its production costs incurred in Canada to qualify as a “Product of Canada.” A “Made in Canada” label, on the other hand, requires only 51 percent Canadian content.
Due to Canada’s climate and growing season, complete self-sufficiency is unrealistic, Lemaire explains. “We don’t grow citrus. We rely on imports from California, Morocco, Egypt, Spain, and South America at different times of the year,” he said. “Altering trade routes would take 18 to 30 days by sea freight—unless we use air freight, which would drive up costs beyond what consumers can afford.”
Another complicating factor is that many Canadian food producers operate on both sides of the border.
“For example, meat from a Canadian cow might be sent to the U.S. for slaughter, processed in Canada, and then exported back to the U.S.,” Lemaire noted. “This makes defining a ‘Canadian’ product more complicated than it appears.”
The Cost of Going Local
Despite trade concerns, Naraine says his store is thriving as more consumers seek Canadian-made alternatives.
“Our local community has rallied to keep their dollars circulating in the local economy and supporting local makers,” he said in an interview with CP24 Breakfast.
However, he acknowledges that locally produced goods often come with higher price tags. While he ensures fair pricing for customers, many of the products in his store are made in small Toronto-based test kitchens.
To prevent food waste, Naraine donates products nearing their expiration date to local food banks. “If you invest in your community, it will flourish,” he said. “Loblaws will always be busy, but we want to see our street full of shoppers all day long.”
Rising Grocery Costs on the Horizon
If tariffs are enacted, Lemaire warns that certain grocery items—especially leafy greens—will be among the first to see price increases.
“About 85 percent of Ontario’s greenhouse produce is exported to the U.S.,” he explained. “If tariffs disrupt these supply chains, prices for leafy greens and bagged salads, which rely heavily on California imports, will surge.”
Lemaire emphasizes that California’s citrus industry, located just a five-day drive from Canada, is a cost-effective model for supplying fresh produce. “We need to ensure any trade policy changes don’t drive up prices unnecessarily for Canadian consumers,” he cautioned.
What Happens Next?
For now, Canada and the U.S. have agreed to a temporary pause on tariffs following discussions between Prime Minister Justin Trudeau and President Trump. However, uncertainty looms as the March 4 deadline approaches.
If the tariffs take effect, grocery prices will rise swiftly—particularly for greenhouse-grown products. “Without tariffs on Canadian exports to the U.S., growers can earn higher returns by selling their goods south of the border,” Lemaire explained. “Forcing them to sell only in Canada could jeopardize their long-term viability.”
Ultimately, he believes this situation has highlighted the fragility of North America’s food supply chain.
“Whether the tariffs take effect in 30 days or not, this is a wake-up call for North America,” Lemaire said. “It underscores the importance of our longstanding trade relationships and the need for food security.”
