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Canada鈥檚 trade war with its largest trading partner is underway. While uncertainty remains around the scope and depth of US tariffs, Canadian brands and retailers need to rebalance a heavy reliance on US-based customers and suppliers.

Hudson鈥檚 Bay looks to liquidate its stores: While the pandemic dealt a severe blow to its sales, the escalating US-Canada trade war may have delivered the final hit.

In our exclusive survey with ESW, data from shoppers in 18 countries reveals new twists in the path to purchase, the rising momentum of marketplaces, and the resilience of age-old fundamentals.

New tariffs and policy uncertainty are raising prices, stalling guidance, and pushing shoppers toward discount channels, especially in ecommerce and essential goods. Tech companies face rising regulatory and tariff pressure.

Tim Hortons, for instance, gained traction in Q2 with initiatives like freshly cracked Canadian scrambled eggs, a $1 donut-and-coffee deal, and a new breakfast meal co-created with actor Ryan Reynolds. Krispy Kreme, by contrast, is prioritizing financial stability over aggressive growth.

Only the Venmo Credit Card offers similar automation, but the Venmo card isn鈥檛 available in Canada. And there鈥檚 no comparable card in the Canadian market. Our take: The CIBC Adapta card will help the issuer keep up with shifting consumer preferences. The CIBC card should be attractive to consumers in Canada given their love for cash back rewards.

China鈥檚 latest ecommerce behemoth is a digital advertising heavyweight. PDD owns the worldwide phenomenon Temu, but Temu鈥檚 ad revenues account for only a small portion of PDD鈥檚 total. Most of the parent company鈥檚 $30.10 billion derives from inside China.

At the same time, President Donald Trump has suggested tariffs on cars imported from Canada could rise even further鈥攔aising more questions than answers for the industry. Our take: The lack of clarity has left automakers and industry groups lobbying hard for relief, but so far, no firm policies have emerged.

Canadians are especially reluctant to travel south at the moment: Air Canada reported a 10% drop in demand for bookings between Canada and the US for the April to September period, while border crossings between the two hit their lowest level since the pandemic in February.

Canadian consumers have turned away from US products amid tensions over tariffs as well as calls from President Donald Trump for Canada to be annexed as the 51st US state. Global favorability of the US fell about 20 points from January into March, per Morning Consult Intelligence, with views from Canada down 44 points, France 33 points, and the UK 31 points.

For now, Canada and Mexico are exempt from reciprocal tariffs, but they鈥檙e not in the clear. Both countries are still subject to the 25% tariffs imposed last month over their alleged failures to curb illegal immigration and drug trafficking, although those are paused for now on USMCA-compliant goods.

The funds will go toward increasing its store footprint and enhancing its ecommerce capabilities, among other things. The investment will create 5,500 jobs, per Caride鈥攁 boost for Mexican president Claudia Sheinbaum as she looks for ways to mitigate tariffs鈥� impact on the economy.

A trade war with the US will hinder economic performance in Canada this year. Ad spending overall is expected to lose the momentum gained in 2024. But many digital formats will benefit from the emphasis on return on ad spending.