If your business relies on cross-border trade, the recent U.S. tariffs on Canadian goods might be hitting close to home. From rising costs to disrupted supply chains and shrinking exports, the impact on small businesses across the country has been real, and it’s still growing.
At Driven, we work with thousands of Canadian business owners who are navigating these challenges in real time. Whether you import materials or export products, now’s the time to understand what’s happening and what steps you can take to stay resilient.
Many Canadian businesses import goods or materials from the U.S., and tariffs are driving those costs up. Steel, aluminum, fresh produce, and specialized equipment are just a few of the categories seeing steep increases.
For small businesses operating on tight margins (as low as 2% in many cases), these added costs are tough to absorb. As a result, many owners are forced to either increase prices, risking customer loss, or cut spending in other critical areas.
Tariffs aren’t just affecting what you bring in, they’re also changing what you can send out. If your business exports goods to the U.S., those products are now more expensive for American buyers. That’s making Canadian-made products less competitive compared to domestic or tariff-free alternatives, especially in industries like manufacturing, food production, and niche goods.
The result? Many small exporters are seeing demand dip and revenue take a hit.
If your supply chain stretches across the border, chances are you’ve felt the pinch. Tariffs are making it harder (and more expensive) to get the parts, ingredients, or finished goods your business relies on.
Many owners are scrambling to find alternative suppliers, reroute logistics, or adjust operations to compensate. It’s not just a cost issue; it’s about timing, efficiency, and keeping your business running smoothly.
Looking for a way to optimize shipping costs and make the process smoother? We encourage you to read The Best Shipping Options for Canadian Small Businesses.
When costs go up and revenue goes down, tough decisions often follow. We’ve heard from business owners who’ve had to:
These decisions are never easy, but they reflect the real-world impact of trade uncertainty on people, families, and local communities.
In response to U.S. tariffs, Canada has implemented counter-tariffs aimed at protecting domestic industries. But for businesses that rely on American imports, this has only added more cost pressure.
There are financial relief programs and supports available through the federal government, but many are limited or require proof of significant hardship. If you haven’t already looked into what’s available, it may be worth exploring, especially if you’re facing short-term cash flow challenges.
Not sure where to start? Here is a list of economic support programs that are available to businesses directly impacted by tariffs.
Despite the uncertainty, Canadian small business owners are finding ways to adapt and stay resilient. Some of the strategies we’re seeing include:
These strategies don’t eliminate the challenges, but they can help you regain control and find new opportunities in a changing trade landscape.
Small businesses are a driving force in Canada’s economy. When tariffs strain your business, the impact is far-reaching: higher consumer prices, slowed economic growth, and job uncertainty.
That’s why it's critical to stay proactive, not reactive, in the face of change.
If tariffs or trade issues are putting pressure on your business, you're not alone, and you're not out of options.
At Driven, we’re a proudly Canadian company that helps entrepreneurs across the country access capital to navigate challenges, manage change, and seize new opportunities. Whether you’re exploring new suppliers, expanding into new markets, or simply need a buffer to get through a rough patch, we’re here to support your growth.
Let’s talk about what’s next for your business.
Advice and research for Canadian small businesses from our expert team
