Tariffs and the Impact on Canadian Businesses

As long as organized trade has existed, so too have tariffs. Records dating back as far as the Bronze Age show levies on caravans in ancient Assyria. They’re baked into global trade and something we’re all used to. What throws things off, however, is when certain trade partners arbitrarily increase tariffs on what appears to be a whim, rather than a carefully crafted plan that is open to negotiation.

Anyone reading this is well aware of tariffs and the confusion that their sudden increase caused for both consumers and businesses alike in 2025. Sure, we may have had a small chuckle upon seeing an increase in queries for “moving to Canada” back in November 2024, but changes in the political landscape both in the US and here in Canada in 2025 have impacted businesses in unpredictable ways. To look at marketing in 2025 and not address tariffs would be like standing in the rain without an umbrella and wondering why you’re getting wet.  From how businesses have adapted (or not adapted) to a surge in patriotism with the Buy Canadian and Elbows Up movements, the shift across industries has been noted. Let’s examine the changes we saw in 2025 first, then look ahead to 2026 and consider how we can move forward and away from them.

Our Industry Observations

Here at Snaptech, we have the privilege of working with a variety of businesses on their marketing initiatives. This allows us to see how the increased tariffs have affected different industries since their implementation. We polled our clients at the end of 2025 to get their perspective on how these tariffs have impacted their businesses. Here’s what they’ve reported to us:

Customer Sentiment

Across all of the respondents’ industries, client sentiment has changed, both positively and negatively. On the one hand, there’s been an increase seen in Canadian loyalty to Canadian businesses, while on the other comes a predicted drop in US traffic. Digging in:

• Some clients have experienced a mix of sentiments, with US customers hoping the tariffs won’t last, and more Canadian interest as customers feel that US vendors are no longer as competitive.
• Our hotel clients have reported that, while no real change in the number of visitors from the US has occurred, those who do visit are hesitant to mention where they’re from, worrying that they may not be made to feel as welcome as they previously were.
• A client in the manufacturing industry has noticed some negative sentiment due to the Buy Canadian movement, as they are a Canadian importer for a US manufacturer.
• One of our moving company clients stated that customers are admitting to specifically looking for a Canadian moving company to handle their move over a US business.

Cost of Supplies/Supplier Sources

Previously, most businesses likely didn’t consider where they were getting their supplies from. Many have pre-established partnerships with suppliers or are simply looking for the best deal when it comes to things like office supplies. Now, with a cost increase on pretty much everything that comes from the US, businesses are taking a closer look at operational costs and moving to alternative sources. In particular, our clients have noted:

• The cost of packing material has increased.
• Suppliers for a number of products in manufacturing have had to be changed.
• There has been an increased cost to basic operational goods, including paper and cleaning products.

Business Costs

Many businesses across the board have responded to the changing tariffs by passing the costs on to the consumer. Still, there will be changes in costs that aren’t product-related and can be shouldered by the end user, which must then be covered by the business. These types of costs include:

• Price adjustments for products made in the USA.
• A client in the moving industry has taken to lowering pricing for Canadian moves to be more competitive.
• The storage and warehouse industry has seen large investments from foreign companies paused due to political and economic uncertainty.

Traffic Changes

Predictably, the increased tariffs have led to changes in website traffic, both negative and positive. These changes tend to go hand-in-hand with client sentiment, and therefore aren’t entirely surprising. From a marketing standpoint, when we’ve seen changes in traffic, we investigate the pages seeing the largest year-over-year differences and check what possible terms could be causing the change. Our clients have reported:

• We’ve personally noticed an increase in Canadian traffic from provinces we’ve not typically done business with. We’ve also, surprisingly, had a few leads come in from the US.
• Overall, an increase in Canadian traffic to businesses that have been able to promote the Buy Canadian messaging.
• The moving industry has seen a decrease in moves to the United States.
• On the other hand, the moving industry has seen increased interest from Canadians currently living in the US who are looking to return to Canada.
• A client in an industry adjacent to travel has noted an overall decrease in traffic, attributing this to the increased costs from tariffs, causing customers to cut back on luxuries like travel.

Despite the changes that may seem largely more negative than positive, there was one tiny ray of sunlight for our marketing clients: the elimination of the digital service tax. With this tax out of the way, costs are slightly reduced in ad platforms for our clients, and those already running ads will get a refund. Small wins, we’ll take them.

Industries Beyond Snaptech

Outside of Snaptech clients, other industries are seeing large impacts on businesses due to the tariffs that you may have noticed or even been a part of. Think about your spending habits and what you’ve changed in 2025. Perhaps you chose to vacation within Canada this year rather than heading to the US. Maybe you’ve made a point to look for the Made in Canada stickers at the grocery store. Small changes to an individual’s personal spending can add up when everyone is doing it. Here are a few examples of other industries that have been impacted by the tariffs and how:

Grocery Stores

Any trip to the grocery store these days will leave you well-informed about what is and isn’t Canadian in your shopping basket. From prominent Made in Canada labels to the price difference between similar items, it’s hard not to be aware of the changes happening due to the tariffs. And, if you needed more, look to the produce section. Prices in this department have admittedly been rising every year, but now, in particular, if you’re still finding produce imported from the US, you’ll notice the price seems further out of reach than before. There’s also less of it, too, as grocery stores order smaller volumes of produce grown across the border and instead look to more local suppliers or expand their search for suppliers into Mexico and South America.

Airlines/Tourism Industry

Notably, the airline industry reported changes fairly soon after tariffs were implemented. WestJet and Air Canada reduced the frequency of flights to the US due to lower demand, with WestJet even electing to scrap a planned Vancouver to Austin route. The company also cancelled routes between Calgary and New York-LaGuardia and from Edmonton to Orlando. Overall, the tourist industry saw a decline in international tourism spending in the US. This, in turn, led Destination Canada to report a 6% increase in tourism revenue in the summer season between May and August.

Books/Publishing

If you’ve ever supported a project on Kickstarter or BackerKit, you know that shipping to Canada can cost almost as much as the amount you’ve pledged. Now, with the added price increases on paper and printing supplies (which were initially due to the global paper shortage but further exacerbated by tariffs) on top of increased shipping costs from the tariffs, supporting an independent project becomes a lot less feasible. While many shops have arranged to have distribution centres in other countries to avoid increased costs to Canadian consumers, there are still enough printing and distributing solely from the US that have had to charge more, making it harder for us to support small or independent creators.

Small Businesses on Etsy

The introduction of new tariffs back in August 2025 left small businesses on Etsy scrambling to find an acceptable workaround. With no formal protocol for border agents to follow, it was impossible to predict how much, if any, a customer would have to pay for items bought from Canadian sellers. As one vendor reported, “they could allow items through without tariffs, charge anywhere from 20-35% of the declared value, or a flat rate between $80-200, at the discretion of each US customs agent. Even items that fell under CUSMA could be hit with tariffs because they had been permitted to disregard it.” As a result, many Etsy sellers reported that customers would refuse their orders and leave bad reviews on the sellers’ shops. It has been easier to stop shipping to the US than try to navigate charging extra to mitigate the tariffs. From a customer’s perspective, Etsy offers filters to display only Canadian vendors or shops that ship to Canada, which is helpful. However, their lack of solutions for vendors leaves much to be desired.

Regardless of the industry, customer sentiment has changed drastically since the introduction of these new tariffs. Whereas previously, people would typically choose the best deals to be more cost-effective, the implementation of tariffs has caused a rise in patriotism on both sides of the border. It would appear that threats from our neighbours were the push we needed to finally adopt the practice of supporting local.

What This Means for Your Business

We’ve looked at all the ways our clients and various industries have been affected by the tariffs. What does any of this mean moving forward? Ideally, this means supporting local for your business’s supplies and needs and, in turn, promoting messaging that brings in local traffic to support you. However, we understand that there is no black and white, simple solution to overcoming the hurdles caused by tariffs. While we are not experts in your business, we are experts in marketing, and have the following suggestions you might consider trying:

Consider your messaging . Are you leaning in to promoting that you’re a Canadian business? If you have customers in the US, is your messaging too aggressive and perhaps making them feel unwelcome? Finding a balance with things like core messaging, keywords, and even logos is key to attracting new customers without alienating old ones.

If you’re looking to promote that you’re a Canadian business, highlight the products that are Canadian. This can include adding something like “Made in Canada” or “Manufactured in Canada” at the end of the product description, or noting Canadian products in an inventory list with a small maple leaf.

Be cognizant of changes in traffic and investigate where they’re coming from. If you’re noticing a decrease in customers from a certain area, make a note of it to dig (or have your marketing team dig) into the search terms that have seen shifts. It’s possible that a few simple tweaks could help attract a new audience.

Be the best option financially. Some clients have started lowering their costs on various services to be a more attractive option to customers. If it makes sense to, sending repeat customers small loyalty discounts once in a while or holding contests on social media to win a free item or discounted service can go a long way in keeping current customers and attracting new ones.

Refocus on the areas where you are still seeing success. This could look like adjusting your marketing budget to spend more on areas where you’re seeing the most traffic coming from or adjusting keywords to target those areas more precisely. It could also relate to what we said above, with sending small discounts to repeat customers.

Consider a new approach. While in the past you may have considered expanding your business operations into the US, now is not the best time to continue down that avenue. Rather than pull back and focus entirely on Canada, if possible, consider exploring new international markets. With the Canada-Mexico Action Plan, Canadian businesses have the green light to expand their operations into Mexico and bypass the US entirely.

Whatever course of action you choose to pursue, being specific and intentional in your marketing will help hone in on the customers you want to attract. Perhaps this looks like shifting focus from a US expansion to more localized targeting or expanding east and west instead of south. Maybe it’s allocating some budget for a Buy Canadian campaign. Whatever it ends up looking like, a savvy marketing team can help your business navigate these uncharted waters and get you through to smooth sailing.

Make Marketing Your (not so) Secret Weapon

As they say, when times get tough, the tough get going. When the economy changes, either from inflation or tariffs, businesses tend to try to get ahead of potential slumps and overcorrect with layoffs and cuts to tighten up the budget. We’ve often found in these cases that that is when marketing teams or services get cut, and while this is super common, it’s not the smartest move to be making. Tougher times might be cause for a budget review and some belt-tightening in order to weather potential declines, but now more than ever is the time to invest in a smart marketing strategy. Rather than simply report the what, the Snaptech marketing team digs into your data to find the why. We work with you and your expertise to understand your business and target the audience you’re looking for. We’ll lift your business above the noise caused by tariffs to amplify what makes you unique and bring you the results that matter.