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Introduction

Canadian supermarket chains are putting maple leaf tags on shelves and highlighting local items, while 80% of shopper, according to a survey by Spring Financial, are boycotting U.S.-made products in reaction to Trump’s comments about taking over Canada as the 51st state while, for others, it is a concern about food safety with the cuts to the Food and Drug Administration in the U.S., which oversees the safety of food and other products.

Canadians Boycotting American-Made Grocery Products

The implementation of Trump's tariff on exports to Canada has resulted in:

Canadian supermarket chains:

• putting up maple leaf tags on shelves,
• shifting their product mix,
• highlighting local items,

and shoppers:

• forgoing their preferred products and/or
• boycotting U.S.-made products entirely regardless of availability or price

...as a way to retaliate against U.S. products and support domestic companies in the process.

Below is a list of 8 of the major U.S consumer packaged goods (CPGs) companies and their stock price changes, in ascending order, since the end of February, when the Trump tariffs were first applied:

1. Campbell Soup (CPB): DOWN 22.9% since the end of February
   • Soups
2. General Mills (GIS): DOWN 22.2% since the end of February
   • Cereals
3. McCormick (MKC): DOWN 19.4% since the end of February
   • Spices
4. Kraft Heinz (KHC): DOWN 18.2% since the end of February
   • Assorted
5. Hormel (HRL): DOWN 17.0% since the end of February 
   • Duncan Hines
6. Tyson (TSN): DOWN 14.6% since the end of February
   • Meats
7. JM Smucker (SJM): DOWN 6.0% since the end of February
   • Jams
8. Kellanova (K): Unchanged since the end of February
   • Cereals

On average, the above CPGs companies' stock prices are DOWN 13.0% since the end of February.

Bottom Line

Tariffs on U.S. exports to Canada are contributing to margin pressure and demand uncertainty for major U.S  CPG companies that are accustomed to selling volume to grocery stores in Canada and this is adversely affecting their earnings/share and their stock prices as a result.

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