Navigating Tariffs: A Guide for Cornwall & Area Businesses
Education
8 Min Read

Navigating Tariffs: A Guide for Cornwall & Area Businesses

The Cornwall and Area Chamber of Commerce is actively monitoring these changes. We will work to keep our members informed as new critical information arises. (Last updated: 12:50pm, Feb 3 2025).
Prime Minister Justin Trudeau and President Donald Trump have announced that tariffs are delayed until March 1st. For more information about this agreement, read the CBC article.

The trade landscape has shifted dramatically for Canadian businesses. On February 1st, 2025, the United States government, under President Donald Trump, imposed a 25% tariff on nearly all Canadian imports (with a 10% tariff on energy products). This move, citing concerns about illegal fentanyl and border crossings, has sent ripples through the Canadian economy and prompted swift retaliatory measures. Canada responded in kind, imposing matching tariffs on $155 billion worth of American goods. 

The tariffs will be implemented in two phases:
‍

"The first phase of the response will include tariffs on $30 billion in goods imported from the U.S., effective February 4, 2025, when the U.S tariffs are applied. The list includes products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper. A detailed list of these goods will be made available shortly."

"The government intends to impose tariffs on an additional list of imported U.S. goods worth $125 billion. A full list of these goods will be made available for a 21-day public comment period prior to implementation, and will include products such as passenger vehicles and trucks, including electric vehicles, steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, dairy, trucks and buses, recreational vehicles, and recreational boats" 

(Source: https://www.canada.ca/en/department-finance/news/2025/02/canada-announces-155b-tariff-package-in-response-to-unjustified-us-tariffs.html).

This sudden shift presents both challenges and opportunities for businesses in Canada. This article, compiled from expert insights, aims to equip our Chamber members with the knowledge and resources to navigate these complexities and emerge stronger.

‍

Understanding Tariffs: What You Need to Know

Tariffs are essentially taxes imposed by a country on imported goods. They increase the price of these goods, making domestically produced alternatives more competitive. While tariffs are paid by the importer, their impact ripples through the supply chain, affecting consumers through potentially higher prices and exporters through potentially decreased demand.  

For a helpful explanation of how tariffs work and their impact on businesses, we recommend this video from the Business Development Bank of Canada (BDC): This video explains how tariffs are taxes on imported goods, paid by the importer, and how they can increase costs, decrease demand, and impact currency and the economy.

‍

‍

Impact on Local Businesses

Tariffs can significantly impact local businesses in several ways:

  • Increased Costs: Businesses importing goods or materials face higher costs, potentially squeezing profit margins.
  • Decreased Demand: Businesses exporting to countries imposing tariffs may see reduced demand for their products.
  • Currency Fluctuations: Tariffs can influence currency exchange rates, impacting the cost of both imports and exports.
  • Supply Chain Disruptions: Businesses may need to diversify their supply chains to mitigate the impact of tariffs on specific regions.

‍

Strategies for Success: Thriving in a Tariff Environment

‍While tariffs present challenges, Cornwall & Area businesses can implement several strategies to adapt and thrive:

  • Market Diversification: Explore new export markets beyond those affected by tariffs. Leverage trade agreements like CETA (European Union) and TPP (Trans-Pacific Partnership) to access new opportunities.
  • Supply Chain Optimization: Identify alternative suppliers, potentially within Canada, to reduce reliance on tariff-affected imports. Consider regionalizing sourcing to minimize transportation costs and lead times.
  • Enhanced Competitiveness: Invest in innovation, streamline operations, and improve productivity to offset increased costs and maintain competitive pricing. Offer value-added services to differentiate your products.
  • Strategic Pricing: Carefully adjust pricing strategies, balancing the need to absorb some costs with the necessity to maintain profitability. Explore tiered pricing for different markets.
  • Government Support: Utilize government programs and resources designed to help businesses navigate trade challenges, such as export development programs and financial assistance.
  • Legal and Contractual Review: Review existing contracts with international partners to understand tariff-related obligations and explore renegotiation options. Seek legal advice to understand your rights and options.
  • Proactive Communication: Maintain open communication with customers, suppliers, and employees about the impact of tariffs and the strategies being implemented to mitigate them.
  • Networking and Collaboration: Engage with industry associations, participate in trade shows, and connect with other businesses to share information and develop collective strategies.

‍

Products facing tariffs

A list of products from the United States subject to 25% tariffs effective February 4, 2025, provided by the Canadian government.

‍
Process for requesting remission of tariffs that apply on certain goods from the U.S.

The Government of Canada is outlining a framework and process for how it will consider remission requests for the tariffs on products from the United States (U.S.) that apply beginning on February 4, 2025. Under specific circumstances, remission allows for relief from the payment of tariffs, or the refund of tariffs already paid.

‍

Key Resources for Businesses

The following resources can assist businesses in navigating the complexities of tariffs and international trade:

‍

Get in Touch with Local Elected Officials
‍

Other Articles

Education
8 Min Read

Navigating Tariffs: A Guide for Cornwall & Area Businesses

February 3, 2025

Read More
Connect
3 Min Read

Introducing the She Inspires Award

January 30, 2025

Read More
Connect
4 Min Read

International Women’s Day High Tea Returns March 7th

January 30, 2025

Read More
The Cornwall & Area Chamber of Commerce
InstagramFacebookTwitter
Find what you're looking for:
HomeAboutEvents & SponsorshipsContactBecome a MemberMember DirectoryNewsCareersPartnersPivot PointsFAQGrants & Financial Support
Chamber Members
View AccountSign UpLog InReset PasswordPurchase a MembershipPay An Invoice
© All rights reserved by the Cornwall and Area Chamber of Commerce