Canadian Boycott of U.S. Goods Stops Short at Wall Street

Rising anger in Canada over trade frictions with the United States has disrupted the summer tourism sector and fueled a boycott of American products, yet the sentiment has not extended to financial markets. Data from National Bank of Canada Financial Markets shows Canadian investors funneled $59.9 billion ($43.3 billion) into U.S. equities and bonds between January and May 2025, the highest level for that period since at least 1990. In contrast, foreign investors pulled $18 billion ($13 billion) from Canadian stocks during the same timeframe.

“The ‘Buy Canadian’ message isn’t shaping investment choices. Canadians are moving into U.S. markets at an unparalleled pace, while foreign appetite for Canadian equities has diminished,” noted Warren Lovely, CEO at National Bank Financial.

This flow of capital comes as Wall Street continues to expand despite pressure from tariffs, labor weakness, and concerns about an AI-driven bubble. Ironically, Canadian equities have recently outperformed U.S. counterparts, partly because domestic companies trade at significantly lower valuations. Even so, the depth and scale of U.S. markets remain highly attractive. Brett House, professor at Columbia Business School, emphasized that the Canadian market is too limited for full diversification, making U.S. exposure essential.

Experts point out that the boycott of American goods and investments are separate issues. “The boycott is largely emotional rather than economic,” explained Moshe Lander, a Concordia University lecturer and former Alberta government economist. While consumers can avoid U.S. products at grocery stores, investing decisions are typically made by advisers who prioritize returns, not political sentiment. “People won’t tell their financial advisers to avoid Apple, Microsoft, or Walmart,” Lander added.

Nevertheless, the consumer backlash has left a mark. Air Canada reported a 10% drop in bookings to U.S. destinations in late March compared to previous years, while Spirits Canada recorded a 66.3% plunge in sales of American spirits between March and April as many retailers suspended imports. According to House, this reflects Canadians’ desire to show disapproval toward U.S. trade actions under the Trump administration.

However, sustaining such measures long term is doubtful. Lander argued that Canada, with a GDP of about $2 trillion, would bear heavier costs than the U.S., whose economy nears $30 trillion. With annual bilateral trade around CAD 500 billion, a firm boycott would have little impact on the U.S. while significantly damaging Canada’s own economy.