Strategy
Tariffs and Canadian Product Brands: Six Questions for This Quarter
New US tariffs, and Canada's counter-tariffs, are landing on independent product businesses. These are the questions we would work through first.
In a survey of 1,545 independent business owners at the end of August 2026, the Canadian Federation of Independent Business found that 26% reported major negative effects from the new US tariffs, and 28% from Canada's counter-tariffs. Among businesses that export to the US, 46% said they were affected. Eighteen per cent of affected exporters said they would stop being financially viable if the dispute lasted three months or more.
1. Which Products Carry the Exposure?
List your products by the share of sales that goes to the US, their margin, and whether any US-made inputs now cost more because of counter-tariffs. The exposure is rarely spread evenly.
2. Can You Price Your Way Through Part of It?
Test price changes where your position is strongest, product by product. Across-the-board increases hand customers a reason to shop around.
3. Which Markets Could Replace US Sales?
Other provinces, Europe under the Canada–EU trade agreement, and online channels all have different costs to reach. Estimate the cost of winning a customer in each before you commit.
4. Is Your Marketing Aimed at the Customers You Need Now?
Budgets set a year ago may still be pointed at the market that just became expensive. Move spend toward the products and markets where margin remains.
5. How Many Weeks of Cash Do You Have if Nothing Changes?
Run the numbers under a simple assumption that the tariffs stay in place for six months. The answer decides how bold the rest of the plan can be.
6. Which Support Programs Fit?
Some federal programs co-fund work of this kind. FedDev Ontario's Regional Tariff Response Initiative supports incorporated businesses in southern Ontario with at least C$1 million in revenue, and CanExport SMEs can support market research for new export markets. Eligibility rules change, so check each program's own page before you plan around it.
Sources: Canadian Federation of Independent Business, tariff survey of 1,545 members, 28–31 August 2026; FedDev Ontario, Regional Tariff Response Initiative eligibility; Trade Commissioner Service, CanExport SMEs 2026–27.