What drives consumer activism during trade disputes? Experimental evidence from Canada

Abstract

What drives consumer activism during trade disputes? We investigate this important and timely question using a survey experiment in the context of the recent Canada–US trade dispute. We find that Canadians are more likely to express willingness to take punitive actions in the form of boycotting during a trade conflict when they learn that Americans are taking such actions (retaliation), when many fellow citizens are taking such actions (peer pressure), and when they are rallied by their government (elite cue). Among the three conditions, peer pressure has the largest effect. These findings contribute to our understanding of the microfoundations of consumer activism during international trade disputes. They also have important policy implications in a world where both protectionism and populism are rising.