OTTAWA, March 19 (Xinhua) -- The surging patriotism among Canadian shoppers fuelled by trade tensions with the United States is impacting U.S. businesses in Canada, local media reported Wednesday.
According to The Globe and Mail, U.S. tour operators are reporting booking declines of some 85 percent, and distilleries are losing major deals. Meanwhile, Canadian grocers are witnessing an increase of up to 10 percent in domestic product sales.
The exchange rate and U.S. fluctuating trade policies have had a "resounding effect" on Canadians' travel cancellations to the United States, and the rhetoric about making Canada the 51st U.S. state has been the "deciding factor" for customers in many cases, said the report.
Last month, the U.S. Travel Association issued a press release warning that new U.S. tariffs could impact travel and spending from Canada, a leading source of international visitors to the United States.
A 10 percent reduction in Canadian visitors could lead to 2 million fewer visits, 2.1 billion U.S. dollars in spending losses and a threat to 14,000 jobs, said the U.S. agency.
The Globe and Mail report said that the ongoing Buy Canadian movement also impacts retailers, with Canadian food retailers reporting a rise in the sales of Canadian products and a drop in the purchases of U.S. goods as a percentage of total sales in preceding weeks.
Canada is a critical market for U.S. spirits, wine and beer. Bartenders and retail clerks in the U.S. industry will face significant layoffs if trade tensions with Canada continue, it added.
Citing Pierre Cleroux, vice president of research and chief economist at the Business Development Bank of Canada, the report said that if every Canadian household redirected 25 Canadian dollars (17.4 dollars) a week from foreign products to Canadian ones, it would boost Canadian GDP by 0.7 percent and create 60,000 jobs. ■
