Navigating new global tariffs: How companies can manage evolving trade relations
Companies operating in North America are under pressure from new trade measures. Business leaders are exploring how President Donald Trump’s tariff plan—and ensuing Canadian countermeasures—will affect economic growth, the value of the Canadian dollar, business investment and deals activity. Additionally, they’re monitoring the impact on the US economy and its effects on their business with US customers. In response, Canadian businesses are balancing short- and long-term actions to adapt and mitigate the impact of an evolving Canada-US trade relationship.
Companies that move quickly to align supply chain, tax, customs and financial strategies can better manage risk, avoid unexpected costs and develop new opportunities. Our interconnected economies mean this applies to all businesses in Canada—regardless of whether they trade with companies operating in the US. Businesses affected by US and Canadian tariffs, as well as other trade actions, can consider several operational and financial mitigation measures, including the following:
We estimate that a 25% tariff on Canadian products would result in approximately $73 billion a year in tariffs. Additionally, a 10% tariff on energy resource products would result in $13 billion worth of tariffs annually.
The most-affected Canadian products include motor vehicle and aerospace products and parts, metal manufacturing materials, chemicals, food items and agricultural products.
Gain insights to help your business navigate the tariff landscape.
Episode 1: Steel and aluminum
Join Kara Selby and Philippe Pourreaux as they discuss the impact of tariffs on the aluminum, steel, and related sectors. Learn how companies can adapt to mitigate the financial impact, ensure operational stability and maintain their competitive edge. Watch the video for key insights.
Episode 2: Customs & International Trade
Dive into the complexities of international trade with our latest episode of Tariff and Trade Perspectives. Join Kara Selby and Martha Goncalves as they discuss the impact of CUSMA and the recent tariff changes on Canadian businesses. Don't miss out on these valuable insights.
Episode 3: Economics and Policy
Kara Selby and Mikaela McQuade dive into the economics and policy of tariffs. Discover why governments impose tariffs, their economic impacts, and how businesses can navigate these challenges.
Episode 4: Tax Policy
Canadian businesses are adapting to US tariffs by leveraging government relief measures. Kara Selby and Colin Mowatt discuss tax credits and incentives that support key investments. Learn how to combine federal and provincial supports to seize new growth opportunities.
Many Canadian business leaders understand this is not the time for business as usual. There’s a need for immediate action, but no quick fixes. Our 28th Global CEO Survey, while conducted before the full possibility of US trade actions against Canada became apparent, found a growing recognition among respondents of the urgency to invest in long-term competitiveness and productivity growth. In the last five years, 60% of Canadian CEOs have taken a least one significant action to reinvent their businesses. This can include expanding into new markets, acquisitions, shifting production to other countries and adjusting product portfolios.
It’s unclear how long these trade measures will last. But by combining the right strategy, structure, culture and technology, organizations can reimagine how they create, deliver and capture value, helping them lead through disruption.
Our highly connected teams across Canada, the US and Mexico are collaborating to help companies manage their immediate challenges and prepare for what’s next. Many companies are discovering that tariff adjustments can lead to significant cost increases across their supply chain. Our proprietary Tariff Impact Assessment (TIA) tool can quantify the exact dollar exposure of potential tariffs specific to your organization as part of a comprehensive scenario analysis. This tool can uncover hidden risks and opportunities, providing a clear picture of potential costs and strategies to mitigate risks. We’re combining our TIA tool and other technologies with our deep industry knowledge and specializations in tax, trade, corporate structuring, deals, data and economics to create an integrated approach that helps organizations navigate the uncertain times ahead.
We’ve created our Tariffs and Trade Policy Resource Centre to provide businesses with materials and insights to help assess and manage the impact of new tariffs across North America. Read our articles and analysis below or reach out to our team to discuss how companies can navigate the changes ahead.
*Recorded April 10, 2025
**Recorded March 10, 2025
***Recorded February 5, 2025
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This report identifies the ways in which tariffs are expected to impact NFP organizations and provides practical information and strategies for policy makers, donors, investors and NFP boards and management teams.
On April 28, 2025, the US Customs and Border Protection released a notice that provides additional details on US President Donald Trump’s executive order.
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National Leader of Economics & Policy Practice, PwC Canada
Tel: +1 416 520 5859
PwC Canada Industrial Manufacturing and Automotive Sector Lead , PwC Canada
Tel: +1 416 320 8175
