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A brief backstory on Trump's tariffs
You’ve probably heard about “Trump tariffs” so often they sound like yesterday’s news. Even before the ping-pong match that started February, 2025, Canada was very much in the crossfire. In mid-2018, then-President Trump imposed tariffs under Section 232, slapping a 25% duty on Canadian steel and 10% on aluminum, all in the name of protecting U.S. national security. Canada hit back with its own tariffs on U.S. goods like ketchup, coffee, and whiskey. Though both countries struck a deal in May 2019 to scrap these tariffs, that agreement seems to be long-forgotten and Canadian small businesses are feeling both the economic and psychological impact from the ongoing trade war.
How the trade war is affecting small businesses
So far the Canadian economy lost billions of dollars in output and thousands of jobs due to those disruptions. Manufacturers scrambled to find new suppliers and often paid higher prices.
And it’s not just steel and aluminum. Small businesses across sectors — from construction to retail — are still dealing with higher costs tied to those original tariffs, compounded by new global uncertainties.
You’re the one negotiating with suppliers, fielding tough customer questions about rising prices — trying to keep your doors open and your team paid — often without the deep pockets or support network needed to cushion the blow.
In March, the Canadian Federation of Independent Business (CFIB), found that 90% of small businesses were struggling with business planning — and that was just as things were starting to heat up. As if it weren’t already hard enough, considering that small businesses and entrepreneurs have higher rates of mental health conditions.
Long story short, it’s no fairy tale.
How US tariffs are impacting the bottom line
Ok, so let’s take a second to get specific. Here are just a few of the blows that Canadians and Canadian small businesses are being dealt by the trade war.
- Higher input costs: That metal for your signage, the cooler shelves in your bakery, or even the nails in your renovation business? Prices went up, and suppliers rarely lower them back down.
- Inventory challenges: Many owners stockpile to dodge future tariffs, tying up cash flow.
- Passing costs along: If you’ve had to bump up prices to survive, you’re not alone. But it also means cautious consumers sometimes delay buying.
- A global ripple effect: The U.S. is still Canada’s biggest trade partner. Any tariff tangle or “America First” policy can put Canadian suppliers on edge, driving further uncertainty.
How Canadians and Canadian small businesses are fighting back
Business as usual doesn’t cut it when global trade can shift overnight. This is when having an Elbows Up mindset makes all the difference. You push through with grit, but also reach sideways to steady each other.
Trump’s tariffs — and the uncertainty they’ve caused —have pushed many Canadian retailers, manufacturers, and even individual consumers to look inward. They’ve driven a resurgence of local loyalty, with more Canadians intentionally choosing Canadian-made goods and services.
- 71% of Canadians say they are more loyal to Canadian brands now than they were a year ago, according to a 2025 BDC consumer sentiment report.
- 83% say buying locally gives them a sense of national pride.
- If current trends hold, the “Buy Canadian” movement could add up to $10 billion dollars to the economy each year.
An opportunity for Canadian suppliers and manufacturers
With U.S. imports becoming more expensive — due to duties on things like steel, aluminum, automotive parts, fertilizers, and even energy products — many Canadian businesses have switched to homegrown suppliers. This opens up huge opportunities for Canadian SMBs to fill gaps. It also pushes innovation – small manufacturers are launching new products or pivoting to replace previously imported U.S. goods.
- According to the CFIB, 32% of business owners have already shifted to suppliers/markets within Canada.
- 27% plan to increase their domestic investment.
- 33% intend to lower U.S. investments.
Federal and local governments are also stepping in
As tariffs and trade spats heated up, federal and local officials have responded with programs to bolster domestic industries, offset costs, and helped smaller firms pivot.
This includes:
- Funding for supply chain diversification.
- Temporary input remissions (so businesses can get breaks on some duties).
- Encouragement for “shop local” initiatives in many provinces.
In fact, as Canada’s government negotiates a new economic and security partnership with the U.S., it is also taking action to protect Canadian workers and businesses from unfair trade practices.
What’s next… we think
A newly announced 35% tariff on Canadian imports kicks in on Aug. 1. While some industries are diversifying exports, for example, Canada’s U.S. market share has dropped from 78% to 68%, uncertainty remains, supply chains are still strained, and costs are rising.
The truth is, Canadian small businesses like yours – whether you’re a solopreneur or have a small team – absorb global shocks differently than big corporations. You can’t always just raise capital or cut staff by 10% to balance out a tariff hike.
Simple steps small businesses can take in the face of Trump tariffs
While there are literally entire websites dedicated to this, here are just a few things to consider:
- Audit your suppliers: Where do your materials really come from? If they cross the U.S. border (or anywhere with recent tariff threats), build a Plan B.
- Be transparent with customers: Many appreciate honesty about global cost pressures, and why modest price increases keep you sustainable
- Watch the big picture: Trade talks might seem far off, but policy shifts often start with small rumbles. (Sources like Huumans help keep you informed.)
Find your people and your support network
Trade tensions and tariffs aren’t some abstract macroeconomic issue. They affect the parts you care about most: your margins, your people, and your stress levels.
Join the Huumans community — where you’ll find other small business owners talking about these very challenges. Whether it’s the lingering impact of Trump tariffs, rising interest rates, or creative ways to keep costs down, you business might run on spreadsheets, but it will grow stronger with the real human connections and thoughtful, positive support.
Conversations around tariffs are really conversations about resilience. Costs, supply chains, customer loyalty: These are all stress-tested by trade disruptions. Being Elbows Up means doing your best and knowing you’re not facing it alone! 💪
