Boycott economics

Weekly Updates

Economic nationalism has been an increasingly important economic trend. The most obvious visible form at the moment is trade taxes, where domestic consumers are punished for daring to purchase foreign-made goods. However, boycotts of foreign goods are also taking place, although sometimes for more complex reasons.
Canadian consumers’ have been provoked by US attacks on their sovereignty and the broader assault on free trade to boycott some US products. In some cases, this has been encouraged by provincial governments.
While theoretically the boycott is directed against US products indiscriminately, in reality, Canadian boycotts focus on products that are visibly identified with the US. Thus, US beer and wine sales in Canada have collapsed. US-produced breakfast cereals, beauty products, and sporting goods have all experienced significant declines in Canadian sales. Goods where the country of origin is not identified so obviously, or where there are fewer obvious substitutes, are less affected.
The more difficult question is how enduring such boycotts will be. Boycotts against specific companies often fade over time, as new customer enter the market. However, a national boycott may be more enduring, as consumer habits change and buying substitute brands becomes an established habit. Retailers then respond by changing inventory and refuse to stock US products at all.