Research CANADIAN NEWS September 24, 2026
Infographic: The State of Supplier Partnerships in Canadian Promo
The percentage of Canadian distributors who worked with more suppliers compared to the prior year ticked up in 2025, as did overseas sourcing. Meanwhile, concern over tariffs fell in early 2026.
Key Takeaways
•Canadian distributors broadened their supplier networks in 2025, with 46% working with more suppliers, up from 39% in 2024.
•Overseas sourcing jumped significantly, with 81% sourcing products from outside North America.
•Trade and cost uncertainty remains a concern heading into Q4 as distributors contend with tariffs, freight costs and the potential for clients to delay spending and projects.
Canadian distributors increased their pool of suppliers in 2025.
In this year’s State of the Industry study for Canadian promo, ASI Research found that 46% of distributors said they worked with more suppliers last year. That’s up from 2024 (39%) and closer to the 2023 number (50%).
In addition, 81% of distributors said they sourced product from outside North America in 2025, up from 63% in 2024 and 58% in 2023.
“I can understand distributors branching out more given the current uncertainty south of the border, as well as the pressure from clients wanting more local niche/artisan products,” says Morgan Edgecombe, COO of Edgecombes Branded Solutions (asi/185952) in Windsor, NS. “For us, we’ve contracted the suppliers we’re using and we’re focusing on our Canadian supplier friends first.”
Meanwhile, “extreme concern” among distributors about suppliers increasing prices and tariff impacts ticked down in early 2026.
“It’s something we’re staying very close to and discussing with clients all the time,” says Edgecombe. “The larger cost hit lately has been from freight. Suppliers have been weathering a lot of that with freight programs, but we expect those to change and we’re preparing for that now.”
Now, with more tariffs in play between Canada and the U.S. and ongoing trade friction, Edgecombe said uncertainty remains for Q4.
“Uncertainty is never good,” he adds. “Clients start holding budgets or projects stop getting approved. Q4 is going to be very telling regarding how clients are going to navigate spending. It looks like things may get worse before they get better as the current trade war with our neighbours ramps up.”
Click here for a PDF of the below infographic.
