Shopify CEO Tobias Lütke Pushes ‘Buy Local’ Features

Shopify Rolls Out “Buy Local” Features Amid Trade Tensions

As trade relations between the U.S. and Canada sour, Shopify has officially launched a new region-based filter for its Shop app, allowing customers to find and support domestic businesses more easily.

The new “Sells from Canada” feature, now available to all Shop app users in Canada, lets shoppers opt to see products from sellers based in the country. Shopify confirmed that the feature is available in all countries supported by Shopify Payments, including the U.S., but not yet in Mexico.

The move aligns with a surge in “support local” campaigns following Canada’s decision to match U.S. tariffs with its own countermeasures. Lütke’s announcement of the feature came just one day after Canada’s federal government implemented 25% tariffs on $155 billion worth of American goods in response to Trump’s executive order that did the same to Canadian imports.

Lütke Calls Canada’s Tariff Response a “Mistake”

While Lütke’s commitment to helping small businesses has been widely praised, his criticism of Canada’s tariff response has been met with backlash from economists and industry leaders.

In a post on X (formerly Twitter), Lütke called Canada’s retaliatory tariffs a “wrong choice” that would hurt the country’s economy while the U.S. would “shrug it off.”

“Canada thrives when it works with America together,” Lütke wrote. “Win by helping America win.”

He went on to argue that Trump’s tariffs were intended as a negotiation tactic to push Canada into taking stronger action on border security and fentanyl trafficking, rather than a long-term economic attack.

Lütke’s stance has been met with sharp criticism, with University of Toronto economist Robert Gillezeau calling it “economically illiterate” and accusing him of aligning with Trump’s position instead of defending Canadian interests.

“For whatever reason, Mr. Lütke appears to be undermining Canada,” Gillezeau told BetaKit. “His decision to align with the Trump administration, even in the face of this reckless and economically illiterate attack on our country, puts us all at greater risk.”

Lütke has not responded publicly to the criticism. Shopify also declined to comment on whether the company agrees with its CEO’s political stance.

Will Shopify Be Affected by the Tariffs?

Despite the growing concerns, Lütke insists that Shopify itself will not be directly affected by the trade war, though he acknowledged that many of its merchants will be.

“America will shrug it off. Canada will decline,” Lütke wrote on social media. “Alongside price impacts and shocks to the supply chain, the substantial recession that is likely to follow will impact nearly all firms.”

Economists disagree, arguing that Shopify—despite being a software company—will still face ripple effects from the economic slowdown.

Gillezeau warned that if consumer spending declines due to higher import costs and economic uncertainty, ecommerce businesses—including those powered by Shopify—will likely see a downturn in sales.

What This Means for Small Businesses on Shopify

For Canadian businesses using Shopify, the new trade restrictions will present serious challenges:

• Higher costs for imported products – Tariffs on U.S. goods will make it more expensive for merchants who source inventory from across the border.
• Supply chain disruptions – Importing materials and finished products could face delays and increased costs.
• Changes in consumer behavior – “Buy local” movements may gain traction, but some businesses will struggle to adapt.

Shopify’s new “Sells from Canada” filter aims to help domestic sellers gain visibility and keep customers shopping locally.

For U.S. merchants selling in Canada, however, the new tariffs could mean a decline in sales as Canadian consumers look to avoid price hikes on imported goods.

What Happens Next?

With Canada and the U.S. locked in a trade dispute, Shopify’s role in the ecommerce space is becoming more important than ever. By introducing tools to support local sellers, the company is giving merchants a way to navigate the economic uncertainty ahead.

However, as political tensions rise, Shopify may find itself under increasing scrutiny—especially as Lütke’s criticism of Canada’s response fuels debate over how the country should handle its relationship with the U.S.

For now, small businesses using Shopify should watch how the trade war unfolds, take advantage of Shopify’s new localization features, and prepare for potential disruptions in supply chains and pricing.

Do you think Shopify’s new “buy local” features will help Canadian merchants? Share your thoughts below.