Canadian SMBs in 2025: The Trends You Need to Know (and How to Turn Them Into Growth)
By Robert Marshall
August 12, 2025
Running a small or medium-sized business in Canada in 2025 means navigating constant change. From shifting trade rules and supply chain challenges to new technology and evolving customer expectations, it can feel like the ground is always moving.
But with every challenge comes opportunity. By understanding the trends shaping the market, Canadian businesses can make smarter decisions, find stronger partners, and stay ahead of the curve. Here is a look at what is happening right now and what it could mean for your business.
Tariffs and Trade Tensions
The United States has increased tariffs on a range of Canadian goods, with some categories facing rates of 25 to 35 percent. This is creating real pressure for SMB exporters, who are seeing higher costs and tighter margins.
At the same time, these trade tensions have sparked a surge in Buy Canadian sentiment. Businesses and consumers are actively looking for ways to keep supply chains close to home. More SMBs are also exploring new export destinations to reduce reliance on a single market.
If your company relies heavily on U.S. customers, this may be the moment to strengthen domestic connections and look for suppliers and buyers within Canada.
AI and Digital Transformation
Artificial intelligence is no longer just a buzzword for Canadian SMBs. Surveys show that 60 percent now have a formal AI strategy and nearly half are already putting AI tools into action.
For many businesses, this means automating repetitive tasks, improving customer service, and making better use of data. The challenge is ensuring the technology actually delivers results. Successful AI adoption often requires cultural change, staff training, and access to trusted expertise.
Businesses that learn to integrate these tools effectively can save time, cut costs, and open new growth opportunities.
Managing Rising Costs and Cash Flow
From raw materials to energy, operating costs have been climbing. Many SMB owners are absorbing these costs rather than passing them on to customers, which can put pressure on margins.
With interest rates still relatively high, access to affordable financing can also be a challenge. This environment is encouraging more businesses to focus on cost control, stronger vendor relationships, and better budgeting practices.
Keeping a close eye on cash flow and exploring competitive supplier options can make the difference between surviving and thriving in this climate.
Shipping and Delivery Disruptions
Canada Post strikes have caused significant delays for businesses that rely on regular shipping. As a result, more companies have turned to private carriers, but often at a higher cost.
The ripple effect is being felt by e-commerce retailers, wholesalers, and any SMB that needs to move products across the country. Flexibility and planning ahead are becoming essential, with many businesses diversifying their shipping options or pooling resources with partners to share costs.
Policy Changes That Open New Doors
The new One Canadian Economy Act aims to remove many interprovincial trade barriers and speed up infrastructure approvals. For SMBs, this could mean fewer headaches when selling in other provinces or expanding operations across the country.
Paired with ongoing programs to support Canadian-made products, the policy environment is becoming more favorable for businesses that want to grow within Canada.
The Power of Local Identity
A growing number of companies are leaning into their Canadian roots. Highlighting local production, homegrown expertise, and regional pride is proving to be a powerful way to connect with customers.
In a year where supply chain stability and national resilience are top of mind, being able to say your business is proudly Canadian can give you a real competitive edge.
Bringing It Together
2025 is a year of both pressure and possibility for Canadian SMBs. Trade tensions, cost increases, and delivery issues are real challenges, but there are also historic opportunities to strengthen local supply chains, embrace new technology, and expand into new markets.
Platforms like CanDoBusiness exist to make those opportunities easier to access by connecting businesses with suppliers, partners, and buyers across Canada. By staying informed and building the right relationships, SMBs can turn today’s uncertainties into tomorrow’s growth.
Ready to start finding new Canadian partners?
Post a Request for Quote on CanDoBusiness today and see how quickly Canadian suppliers respond. It is free to start, simple to use, and built for businesses that want to keep more opportunities close to home.