If you can’t join them, beat them!
In response to ongoing tariff uncertainties and the escalating cost of imported goods, Costco Canada is strategically increasing its sourcing of Kirkland Signature products from within Canada. The move aims to minimize the impact of Trump tariffs on consumer prices and ensure a consistent supply of popular private-label items.
Recent shifts in global trade policies, including the implementation of tariffs on various imports, have prompted retailers to re-evaluate their supply chains. Costco, known for its focus on value and bulk purchasing, is actively working to mitigate these added costs, which would otherwise be passed on to Canadian members.
Chief executive Ron Vachris said his company is looking at ways to avoid impacts from tariffs, including sending items from high-tariffed nations to stores outside the United States and sourcing products from its Kirkland Signature brand in domestic markets.
“We continue to move more Kirkland Signature product sourcing into the countries or regions where the items are sold, and this is helping us to lower costs and mitigate some of the potential costs of tariffs,” he said during the company’s third-quarter conference call on Thursday.
While Kirkland Signature products are globally recognized, a significant portion of the brand’s success in Canada already comes from its Canadian-sourced items. For instance, Kirkland Signature 100% Pure Maple Syrup is a prime example, tapped from maple trees in Quebec and supplied by companies like The Maple Treat and Citadelle.
Similarly, Kirkland Signature Lasagna is produced in partnership with B.C.-based Zinetti Foods, and Kirkland Signature Nut Bars are made with Quebec-based Leclerc Foods.
The push for more domestic sourcing extends beyond food items. Efforts are underway to identify and collaborate with Canadian manufacturers for a wider range of Kirkland Signature products, from household essentials to apparel. This strategy not only helps circumvent tariffs but also strengthens local economies and reduces reliance on complex international supply chains that are vulnerable to disruptions.
Costco has openly acknowledged the challenges posed by tariffs in recent earnings calls, with executives noting a proactive approach to managing related costs. This includes working closely with vendors to explore cost-saving measures, considering alternative sourcing locations, and even adjusting product offerings (SKUs) if certain imports become unfeasible due to tariffs.
In their Q3 2025 earnings call, Costco executives explicitly mentioned moving “more Kirkland Signature product sourcing into the countries or regions where the items are sold,” highlighting their strategy to “lower costs and mitigate some of the potential impacts of tariffs.”
While some price increases on imported goods are inevitable across the retail landscape, Costco’s enhanced focus on Canadian-sourced Kirkland Signature products is expected to provide a buffer for Canadian consumers, ensuring continued access to quality items at competitive prices. This aligns with a broader “Buy Canadian” movement gaining momentum in the retail sector, as noted by industry experts.
