Navigating Trump’s New 35% Tariff: Why Canadian SMBs Need Each Other Now
By Robert Marshall
August 1, 2025
Today, Canadian businesses awoke to the news of U.S. President Donald Trump imposing an increased 35% tariff on Canadian imports. This move, widely criticized by Prime Minister Mark Carney as “disappointing,” creates significant challenges for Canadian small and medium-sized businesses (SMBs) across multiple sectors including lumber, steel, aluminum, automobiles, and even confectionery.
The reality of this tariff hike is stark: Canadian businesses that rely heavily on the American market will face significant financial strain. Companies like Taza Chocolate in Massachusetts have highlighted how American businesses themselves struggle under similar tariffs, showing that trade barriers create complexities on both sides of the border. With this new environment, the financial margin for Canadian businesses exporting south becomes even tighter, necessitating immediate strategic shifts.
But where there’s disruption, there’s also opportunity.
Why It’s Time to Rethink Your Supply Chain
This tariff challenge serves as a powerful reminder for Canadian SMBs to reconsider their supply chains and customer bases. Amid international trade uncertainties, strengthening local economic ties has never been more crucial. Platforms like CanDo Business are designed specifically to address this need helping Canadian SMBs discover and engage with nearby suppliers and partners, creating robust local networks resilient to external shocks.
Why Local Platforms and Networks Matter
Cost-Efficiency and Competitiveness:
Tariffs drastically increase costs for businesses dependent on cross-border trade. Sourcing goods and services locally often reduces logistics costs, minimizes tariff impacts, and strengthens regional economic stability.
Building Resilient Local Supply Chains:
Local collaboration enhances flexibility, reduces delivery times, and improves supply chain reliability, especially when international relations grow unpredictable.
Community and Economic Empowerment:
Engaging with local businesses means your money stays within the community, stimulating further economic activities and job creation, benefitting everyone involved.
Sustainability and Long-Term Growth:
Shortening supply chains is not just good economic sense, it’s also better for the environment and positions your business as forward-thinking and responsible.
Real-World Example: Chocolate and CUSMA
Take the example of the Canadian chocolate market: due to favorable terms under the Canada-U.S.-Mexico Agreement (CUSMA), Canadian chocolate manufacturers already have an advantage over American firms, who now face increased costs due to tariffs on essential cocoa imports, as reported by CTV News. Such examples clearly illustrate the competitive edge available to businesses who strategically leverage local conditions.
Building a Stronger, More Independent Canada
As Prime Minister Carney highlighted, it’s time to focus on “building Canada strong.” The path to sustainable economic independence involves boosting interprovincial trade, diversifying international markets beyond the U.S., and, critically, enhancing local business cooperation.
The Solution Is Right Here
In response to these tariffs, every Canadian SMB should ask: Is there someone nearby who provides what I need? Chances are, the answer is yes. Platforms like CanDo Business empower you to quickly find and connect with trusted local suppliers, ensuring your supply chains are robust, competitive, and locally supported.
Don’t Wait! Strengthen Your Business by Building Local Partnerships Today
Visit CanDoBusiness.ca and start discovering reliable Canadian businesses near you.