Canadian businesses that export to or import from the United States are reporting significant cost pressures and strategic challenges as a result of recent tariff measures and trade policy uncertainty, according to the latest Statistics Canada survey of business conditions.
The fourth‑quarter 2025 findings show that tariff changes on cross‑border goods and services are affecting companies across sectors and reshaping operational planning and supply‑chain strategies.
A large majority of Canadian exporters remain closely tied to the U.S. market, with companies selling an average of about 36.7 % of their total goods and services to American buyers. But over **one‑third of these exporters say current U.S. tariffs imposed on Canadian products have had a major negative impact on their business, squeezing margins and complicating pricing strategies. Nearly 40 % anticipate rising operating costs over the coming months, while more than one‑quarter expect export volumes to decline as tariff pressures persist.
Tariffs are not only affecting exporters. Canadian firms that import goods and services from the U.S. report similar disruptions: more than one‑third of importers expect higher costs and reduced profitability in the near term, and a notable share plan to adjust their networks by seeking alternative suppliers or increasing domestic sourcing to mitigate exposure to ongoing tariff impacts. \
Across the broader business community, broader supply‑chain effects are emerging. More than one‑third of all Canadian companies — not just those trading with the U.S. — say tariffs levied by either country have negatively influenced their operations. Increased input costs and delays in delivery of products and supplies are cited as key contributors to these challenges, according to the survey.
In response to tariff‑related cost increases, about half of Canadian exporters say they are likely to pass at least some of these costs on to customers over the next year to protect profitability — particularly in wholesale, retail and manufacturing sectors. Meanwhile, some exporters are considering diversifying their markets outside the U.S. to lessen dependence on their largest trading partner.
The findings underscore how tariff policy and trade friction — especially between Canada and the United States — are influencing supply chains and business strategies well beyond headline export figures, shaping pricing decisions, sourcing plans and long‑term competitiveness heading into 2026.
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