How Canadian Companies Can Get Past the US Tariffs

If you’re a business owner in Canada, the new tariffs from President Trump are a big problem. And this is just the beginning of an economic slowdown that will erode your revenues and business sustainability.

You’ll be challenged to reorganize and establish a new value proposition to perhaps an entirely new customer base.  While you might feel defeated right now, keep in mind that crisis is opportunity. A new door always opens, and this change might be what gives your travel business, software company, or real estate brokerage the market leader title you need.

For decades, Canada hasn’t developed other trade partners to expand GDP and create jobs. The inevitable collapse of the US under crushing debt, regulations and more led to the election of Donald Trump as President. That opportunity is evaporating. He promised tariffs and they’re here. And for decades, Canadian small businesses have endured a walk through a thorny, walled garden belonging to the big corporations. As luck would have it, the big corporations have also lost their advantage leaving the Canadian market to small businesses like yours.

As this chart from CFIB shows, the writing was on the wall for Canadian SMEs.  The orange bars show a massive drop in exports.  Only the large corporations have benefited from the Canadian government’s policies. Small business needs some guidance, encouragement and support.

Money Canadians had thrown at expensive autos and houses, vacation properties and foreign-made appliances will likely be shifted to new priorities.

We’re hearing a lot about the job losses expected in the auto sector, metals production sector and the agricultural sector.  The Ontario Quebec, Alberta and BC economies are forecast to shrink significantly.   This makes it a good time to take stock and adjust how we do business to cut costs, re-envision brands, adjust products/services and seek out new markets to serve.

The Economic Alarm has Sounded

If Trump decides to ease the tariffs later this summer or in the fall (it could happen) it will still mean the trade landscape has changed.  The US is focused on itself, and likely will enjoy significant growth. There will be spinoffs, but relying on that is unwise.  Out of the chaos, Canada will retain sufficient revenues to launch new businesses and trade relationships around the world.  And there’s a golden era potential if we exercise our international business muscles.

Service businesses are in Trump’s crosshairs too and he may find a way to tax service exports to the US.

The US will likely not return to the old relationship since Trump has stated repeatedly his focus is on growing and supporting US-based companies, particularly in manufacturing, and reducing US trade deficits and wasteful spending. So things have changed already. That means tariffs will remain in place.  Some in the US are calling this a generational change in trade.

At this point, a calm, reasoned approach is needed. Clearing away the emotional debris can help you get clarity and make some excellent decisions.

Finding Ideal Trading Partners and Building New Business

The issue with tariffs is only part of the problem. The issue now might now be product/service quality, price, and performance. But what you sell now likely is already competitive and might only need adjustments and promotion. Or you might need to improve and evolve. Whatever you decide to upgrade and change, you need to reach consumers or B2B buyers in your targeted export countries.

As the chart above shows, we’re doing substantial business in 5 countries, but there are many others to which we are highly trade compatible.  Japan and Italy stand out as excellent mutually helpful trade partnerships. Given their need for natural resources, potential for travel trade, and technological sophistication, they are ideally suited to high level, high profit business.

Italy, Japan, UK, France, Spain, China and other nations need Canadian natural resources and Canada can supply them either raw or processed. They need sophisticated technology systems for buildings and houses, as an example.  Partnering with technology companies can help you increase your value proposition and significance to foreign companies.

This is where digital marketing comes into the growth picture. Because customers don’t buy reality, they buy the picture of value you communicate. The best product/service often doesn’t win, but rather the product/brand that presents the best match to their veiwpoint. And in reality, performance will come down to your SEO/Content strategy and some paid advertising to get your excellent UVP across beautifully.

Devalued CAD Currency Provides a Nice Advantage

If you’re thinking foreign markets are too tough, consider the incredible advantage Canadian businesses enjoy:

• highly educated and bright population of workers
• the ability to leverage natural resources to build partnerships with foreign businesses (help their countries evolve)
• low currency value
• image of trust, business strength, political harmony, and reliability
• a network of free trade agreements (FTAs) that provide preferential access to more than 50 countries and 1.5 billion consumers
• political neutrality
• a plan for Geographic Export Diversity
• a number of agencies that help ease the risk of international business

International Business Marketing

After you’ve established what your international product/service and new branding should be to capitalize on the opportunity, you’re ready to develop the assets and strategy and launch the campaign. Your new assets might include a digital marketing audit, digital marketing strategy, professionally designed website, comprehensive content strategy, advanced SEO, PPC campaigns with comprehensive analytics insights.

You may need to access an international business consultant to learn how to tailor your marketing and branding strategy for each country. That solution is beyond creating new sections in your site for each foreign language. It might be wise to focus on one key country where you’re most likely to be successful.

Of course, those countries have trade tariffs too. You’ll discover how to surmount them in your marketing plan.

It’s unfortunate that your US business is suffering due to the big US change. Yet, these are golden opportunities to improve your marketing prowess, which may be the biggest benefit you’ll gain. Because business is marketing – identifying the right customer and communicating your UVP specifically to them. Master marketing and you can do anything you want.

Marketing is What You’re Most Wise to Invest in 2025

If you’re a travel agency, foreign markets such as Japan, Italy, China, France, and the UK are a powerful addition to your usual USA targeting to reach a much wider base of potential customers, influencers and partners. This is how you can beat domestic competition.

If you own a real estate business, we could be heading into a great era.  As mortgage rates and home prices fall, we should finally see owners selling.  Should the US ease up on tariffs, it adds financial support to your new international business strategy.

If you’re a travel agency owner, check out my Canada travel marketing services.  I’m certain that travel content strategy, travel SEO, and some creative ingenuity can help you reach above the competition and win market share. A little optimism goes a long way.