The Impact of Potential Tariffs: How to Get Your Business Ready
What Are Tariffs?
A tariff is a tax imposed by a country on imported goods, collected when goods cross the border. The goal is to make domestically produced goods more competitive compared to imports.
Recently, the U.S. has implemented new tariffs on Canadian imports:
25% on Canadian goods
10% on energy exports
25% on Canadian steel and aluminum products
Canada has introduced reciprocal tariffs on select food and beverage products and home goods, as well as on various steel products, appliances, and technology.
Full details here.
How Might Tariffs Affect Your Business?
Higher Costs on Imported Goods
If you source products internationally—especially from the U.S. or China—tariffs can drive up costs:
Clothing Boutiques: Tariffs on textiles can make apparel more expensive, forcing price increases or profit cuts.
Home Décor & Furniture Shops: Import duties on furniture or raw materials may raise wholesale prices as your suppliers adjust.
Rising Food & Beverage Prices
For restaurants and cafés, tariffs on agricultural goods can squeeze margins:
Cafés & Coffee Shops: Increased costs for coffee beans or dairy could raise the price of your lattes.
Restaurants & Bars: Tariffs on beef, seafood, or alcohol may require menu adjustments or local sourcing.
Supply Chain Disruptions
Tariffs can lead to material shortages, delays, or supplier shifts:
Hardware & Specialty Shops: Tariffs on construction materials, tools, or car parts could result in backorders and price hikes.
Small businesses in manufacturing, retail, and food service should assess their exposure to rising costs and supply chain risks.
How to Prepare for Tariffs
Minimize the impact of tariffs on your business with these proactive strategies:
Assess Your Supply Chain – Identify at-risk suppliers and explore domestic or alternative sources.
Adjust Pricing Strategically – Balance profitability and competitiveness when setting new prices.
Stay Informed – Keep up with tariff updates and trade policies that affect your industry.
Advocate for Your Business – Engage with industry associations and government representatives to voice your concerns to policymakers.
Consider the following:
How will higher prices affect customer demand?
Can competitors undercut your new pricing?
How would a drop in sales impact your bottom line?
If you absorb the cost, how will it affect your financial stability?
Are there indirect costs (e.g., shipping, supply chain changes) to consider?
Being proactive now can help safeguard your business from potential disruptions.
Resources to Help You Manage Tariffs
Take the Tariff Impact Survey – The City of Toronto is gathering feedback from local businesses to understand the effects of U.S. tariffs. This five-minute survey will help shape advocacy efforts and inform support programs. Take the survey today.
List of Products from the US Subject to 25% Tariffs – This webpage includes a detailed list of U.S. imports that may be impacted, organized by Harmonized System (HS) codes
Canada Tariff Finder – A free tool to look up tariff rates for specific products and countries where Canada has a Free Trade Agreement. No HS code is needed, making it easy to estimate international trade costs.
Discover & promote locally made products – This portal connects manufacturers, retailers, and consumers with high-quality Ontario-made goods.
Work-Sharing Program – Avoid layoffs during downturns. This program provides financial support to help businesses and employees manage temporary slowdowns. See if you qualify.
Requesting remission of U.S. tariffs on certain goods – If you’re struggling to source certain goods outside of the U.S., the Government of Canada offers a process to request tariff exemptions. Businesses must submit documentation on sourcing challenges and economic impacts. Learn more.
Weathering the Storm: A Canadian SME Playbook for Navigating US-Canada Tariffs – The Toronto Board of Trade has created this actionable guide for small businesses, offering practical strategies to mitigate tariff impacts and stay resilient.
Consulting Support from the Business Development Bank of Canada – The BDC offers financial risk assessments, resilience planning, and coaching to help businesses navigate rising costs and trade challenges. Learn more.
How to Strengthen Your Brand and Promote During US/Canada Tariff Tensions?
Highlight Canadian Identity in Your Marketing Strategy
Showcasing your Canadian-made products, locally sourced goods, or commitment to supporting Canadian workers sets your business apart and resonates with customers who prioritize shopping local.
Tell Your Story – Share behind-the-scenes content that highlights your team’s dedication to quality, ethical practices, and community values. Authentic storytelling builds trust and strengthens connections with your audience.
Make It Visible – Ensure your website, signage, and social media prominently highlight your local roots. A simple “Proudly Canadian” badge or message can reinforce your identity.
Leverage Social Media & Hashtags – Expand your reach with #LoveLocal, #ShopLocal, #SupportCanadianBusiness, #ProudlyCanadian, #CabbagetownTO to attract engaged customers looking for Canadian alternatives.
Embody the Movement – Being a Canadian business is more than just a selling point—it’s about embracing the spirit of community and pride that drives the shop-local movement. By emphasizing your Canadian identity, you’ll boost credibility, foster loyalty, and strengthen your connection with customers who want to support homegrown businesses.
Make your local identity a key part of your brand—and let customers know they’re making a meaningful choice when they shop with you.
Optimize Your Online Presence for Local Searches
More shoppers are researching before they buy—make sure they find you!
Focus on SEO strategies that ensure your business shows up when consumers search for products or services that are Canadian-made. This includes optimizing your website content, product descriptions, and blog posts to highlight your Canadian roots.
Optimize your website with SEO keywords like Canadian-made, Toronto small business, shop local Toronto, locally-sourced, and Cabbagetown shopping.
Update your Google Business Profile with photos, accurate hours, and key details.
Add Your Business to local directories & Canadian Online Retailers Lists:
Leverage Social Media to Build Community and Raise Awareness
Social media is a powerful way to showcase your business, connect with customers, and build brand loyalty. Here’s how to make the most of it:
Create Engaging Video Content – Share behind-the-scenes Reels and TikToks featuring your process, team, and best-selling products. Show what makes your business special!
Spotlight Local Supporters – Feature customer testimonials and user-generated content. Highlight why people love shopping local and tag them in your posts.
Use Strategic Hashtags – Boost visibility with #ShopLocal, #TorontoSmallBusiness, #LoveLocal, #CabbagetownTO, #ProudlyCanadian to reach engaged local audiences.
Promote Exclusive Local Deals – Create urgency with limited-time offers that encourage immediate action and reward loyal customers.
Engage in Online Communities – Join platforms like Reddit’s r/BuyCanadian (193K+ members) where consumers actively seek Canadian-made products. Answer questions, share your story, and promote your business authentically.
Run Ads with Canadian-Specific Messaging – use paid ads Google, Facebook, and Instagram to target Canadian consumers, who are more likely to support local businesses, with specific messaging that highlights your businesses’ local products and services.
Join the #LoveLocal Movement
Toronto’s Love Local campaign encourages residents to support Canadian businesses, strengthen the economy, and protect local industries. Here’s how you can take part:
Use #LoveLocal on social media to connect with the movement.
Place a Love Local sign in your store and encourage shoppers to snap a picture and tag your business.
Share stories about how supporting local makes a difference in the community.
Get Involved in #ShopMainStreetCanada
The Ontario Business Improvement Area Association (OBIAA) leads the Shop Main Street Canada initiative, urging Canadians to support small businesses that drive economic growth and job creation.
Use #ShopMainStreetCanada and tag @OBIAA in your posts.
Download and add the Shop Main Street Canada badge to your marketing materials. Download the Cabbagetown badge.
Offer Special Promotions & Incentives for Canadian Customers
During a time when Canadians may feel more inclined to support local businesses, offering promotions specifically for Canadian customers can be a great way to drive sales. Attract new customers and reward loyal ones with Canada-focused promotions:
“Proudly Canadian” Discounts – Offer discounts on Canadian-made products.
Free Shipping in Canada – Make shopping with you easy and accessible.
Buy Local Bundles – Partner with other Cabbagetown businesses to create special bundles featuring multiple local products.
These small steps can increase visibility, attract new customers, and build long-term loyalty.
