U.S. tariffs are attracting attention again. The most recent round of trade policy decisions features a 25% tax on imported steel and aluminum, which is forcing Canadian businesses to adapt. But even though these measures are framed as foreign policy or geopolitical tools, they directly impact balance sheets, supplier contracts, and financial planning for companies north of the border.
Canada sent almost 6 million metric tons of steel to the United States in 2024, accounting for 23% of the total U.S. steel imports, according to a report by The Motley Fool. With tariffs in place, the consequences are not limited to big multinational manufacturers. Small and medium-sized businesses that depend on cross-border supply chains are also facing higher material costs or contracts that have been renegotiated. The Canadian Manufacturers & Exporters’ recent survey also found that 90% of respondents expect serious consequences arising from the tariff decisions.
Serge Robichaud, a financial advisor who works with businesses in New Brunswick, says many business owners are trying to understand how tariffs fit into their financial planning. “Tariffs affect costs, cash flow, and long-term planning. You have to treat them as part of your financial risk management,” he explains.
Supply chains tend to be the ones to feel the most pressure. Even if a company does not import goods directly from the United States, it might depend on suppliers who do. This can create new pricing pressures that were not accounted for in earlier contracts. Robichaud encourages businesses to chart their supplier networks and incorporate flexibility into sourcing strategies. Contracts should provide for cost adjustments, and businesses should consider local sourcing alternatives where feasible.
Currency volatility has also exacerbated financial uncertainty. The Canadian dollar has fallen about 7% relative to the U.S dollar in the last 12 months, according to RBC Economics. This change makes importing goods more expensive and adds another burden on companies with U.S dollar costs.
“Currency risk is frequently taken for granted until it starts impacting margins. Businesses need to consider strategies such as forward contracts or multi-currency accounts. These tools can provide cash flow stability and help with planning,” says Robichaud.
Many businesses are also reassessing their financing structures. With interest rates staying high and inflation pressures being persistent, companies with variable-rate loans or substantial inventory needs are finding it harder to manage working capital. The Bank of Canada has also indicated that trade disruptions caused by tariffs could lead to decreased business investment and weaken certain sectors.
“Now is the time for businesses to be looking at their levels of debt and liquidity. People need to know what kind of financial cushion they have. If revenue slows or costs rise suddenly, that cushion becomes critical,” says Robichaud.
Other areas of concern include awareness of government programs and trade regulations. If a business fits certain criteria, it may qualify for relief or exemptions, but the policies are complicated and time-sensitive. Robichaud advises businesses to work with advisors who can stay on top of these updates and help determine if they qualify. Businesses should maintain well-organized records of their imports and suppliers in case rules change or reporting is required.
The International Monetary Fund revised its global growth outlook to 3.3% for 2025 and 2026, stating that long-running trade measures have led to a slowdown in investment and the coordination of supply chains. In Canada, businesses continue to adapt to these pressures, typically by strengthening internal financial systems and planning processes.
Robichaud believes that businesses benefit from regular financial reviews and scenario planning. He advises clients to create multiple cash flow forecasts that incorporate various cost structures and currency assumptions.
“You don’t have to predict what’s going to happen. You just have to know how your numbers look in different situations. That helps give you a baseline for decision-making,” Robichaud concludes.
As tariffs and trade policies evolve, the financial strategies of Canadian businesses must evolve with them. Conducting supplier network audits, managing currency exposure, ensuring financing strength, and keeping informed of policy changes are all strategies companies can implement to drive stability and resilience in a changing economic environment.
