From the Desk of Your CPA: Tackling U.S. Tariffs & Supporting Small Businesses

As a CPA advising Canadian businesses, the dramatic surge in U.S. tariffs in 2025 has quickly become one of the most pressing topics in client discussions. Beginning earlier this year, the U.S. implemented sweeping tariffs—25% on a wide range of Canadian goods not compliant with USMCA, and 10% on energy or commodities.

Why Small Businesses Feel the Squeeze

These elevated tariffs impact small businesses in very real ways. According to the Canadian Federation of Independent Business, nearly 7 in 10 small importers are now shouldering the full burden of these duties, with cost impacts averaging around $9,000 per business. Many don't have the negotiating power or supply chain flexibility that larger companies enjoy—especially those exempt from tariffs, like major oil producers. 

In manufacturing, retail, transportation, and distribution—sectors heavily integrated with U.S. supply chains—tariffs have compounded margin pressures and increased operational risk. 

Trade Tensions Fuel Growing Disconnection

Beyond direct costs, Canadian small businesses are witnessing broader repercussions. A growing consumer backlash against U.S. products has arisen—resulting in decreased tourism to the U.S. and shifting buying patterns favoring Canadian goods. 

For exporters, a 25% tariff on vehicles and vehicle parts has disrupted long-standing supply chains with stateside buyers. All components must now clearly document origin to claim USMCA compliance—or face a full tariff.

Federal Relief & Support Measures

While these tariffs are disruptive, there’s hope. The Government of Canada has launched several relief initiatives, including:

• Duty Relief Programs for businesses importing U.S. goods that are then re-exported

• Financial support via the Business Benefits Finder

• Funding and loan programs aimed at sectors hit hardest by tariffs

  
  

What You Can Do Now: Practical Steps for SMEs

1. Audit Your Supply Chain

   Determine if your materials or products can meet USMCA standards to avoid full tariffs—or if alternative sourcing could be more cost-effective.

   
   

2. Explore Relief Programs

   Investigate eligibility for duty relief or government grants to offset tariff-related costs.

   
   

3. Adjust Pricing and Margins

   Review your pricing models and inventory forecasts. In some cases, absorbing short-term margins may be better than losing customers to price hikes.

   
   

4. Strengthen Cash Flow Planning

   Talk to your financial advisor about lines of credit, interim financing, or working capital strategies to weather the tariff storm.

   
   

Final Thoughts from Your CPA

Tariffs are not just abstract economic policy — they have a very real impact on the day-to-day operations of small businesses. Rising costs, supply chain disruptions, and shifting consumer patterns all add to the challenges entrepreneurs are facing. With careful planning and the right support, many businesses are finding ways to adapt and position themselves for long-term resilience.

If you’re uncertain about how these tariffs may affect your operations — or want guidance on accessing relief programs and refining your financial strategy — let’s connect. We can help evaluate your exposure, explore available options, and work with you to build a plan that safeguards profitability and future growth.