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: 2:30pm, March 4 2025).

As of March 4, 2025, the United States has implemented a 25% tariff on nearly all Canadian imports, with a 10% tariff specifically on energy products. In response, Canada has imposed 25% tariffs on $30 billion worth of U.S. goods, with plans to extend these measures to an additional $125 billion in the coming weeks.

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.

‍

Read: Canada's Repsonse to U.S tariffs on Canadian Goods

‍

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

(Updated) A list of products from the United States subject to 25% tariffs effective March 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

Advocacy
2 Min Read

Press Release - Cornwall and Area Chamber of Commerce Responds to Tariff Implementation

March 4, 2025

Read More
Education
8 Min Read

Navigating Tariffs: A Guide for Cornwall & Area Businesses

March 4, 2025

Read More
Advocacy
2 Min Read

WATCH - Provincial Election Debate Brings Key Issues to the Forefront

February 20, 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