The Canadian economy may be holding steady for now, but many consumers are bracing for tougher times ahead. In May 2025, we asked our Globe Insiders panel of readers how they feel about the economy, the impact of U.S. tariffs, and the steps they’re taking to protect their finances.
Cautious confidence in the economy
Most Globe readers (83%) rate the Canadian economy as fair or better, with 54% describing it as “fair” and 29% as “good” or “excellent.” Only 17% rate conditions as poor or very poor. While 60% say Canada is not currently in a recession, there is an undercurrent of caution – 57% of those who think we are recession-free today believe one is likely within the next six months. Among readers who feel Canada is already in a recession, 38% don’t expect the economy to recover until at least 2027.
Price pressures – and a shift to Canadian products
Two-thirds of readers (65%) have noticed price increases since U.S. tariffs were announced, with grocery bills hit hardest – 92% of those who noticed increases pointed to food. Other categories seeing notable jumps include dining out (67%), travel (47%), and clothing/footwear (43%). Many are responding by adjusting their buying habits: 81% report purchasing more Canadian products, and the same share are buying fewer American products. The trend extends to where they shop, with 55% buying more from local or independent retailers.
Savvy shopping and early purchases
The tariffs are prompting readers to pay closer attention before they buy. Ninety-two percent are doing more research on product origins, pricing, and supply chains, with 51% saying they are “significantly” more careful. This heightened awareness is influencing buying decisions, as nearly four in ten have made “beat the tariff” purchases – stocking up on certain items, buying consumer electronics, or investing in furniture and home goods before potential price increases. Another 38% haven’t bought early yet but are considering it.
Investing conservatively amid uncertainty
Not all readers are making changes to their investments – 44% have either increased or have not made any changes to their investments, but among those who have, the shift is toward caution. Twenty-nine percent are holding back more cash, 17% have moved to less risky investments, and 12% have shifted funds from U.S. to Canadian markets. Smaller segments are actively hunting for value stocks (10%) or working more closely with their financial advisor (18%). These changes suggest an appetite for stability and a reluctance to take on new risk while market conditions remain uncertain.
Charitable giving largely unchanged
For most Globe readers, charitable giving has not been affected by the tariffs. 10% have changed the amount they give, and among those who have, there’s a mix of responses – 22% are giving more, while 66% are giving less. Interestingly, those who view the economy as “excellent” or “very good” are more likely to have increased their contributions, while those rating the economy as “poor” are more likely to have cut back.
Watching the markets – and the year ahead
Market volatility is a major concern, with nine in ten readers at least somewhat worried it will affect their personal finances. Still, there is a note of optimism: 36% feel positive about the year ahead when thinking about their family’s finances, compared with 40% who are pessimistic and 24% who are unsure. Optimism is strongest among those who see the economy in a favourable light, while uncertainty dominates among those who consider it only “fair.”
Summary
Globe readers are navigating the current economic landscape with a mix of caution and optimism. Many are spending more time researching purchases, shifting toward Canadian-made goods, and taking a measured approach to investing. For advertisers and financial institutions, this signals an audience that is attentive, value-conscious, and highly responsive to messages that reinforce trust, quality, and local support.
