Canadian Business Outlook Gloomy as Tariffs Persist
TORONTO – A persistent shadow of tariffs continues too darken the Canadian business landscape,contributing to a gloomy outlook despite some softening of global impacts,according to recent reports.While global companies anticipate a decrease in tariff costs-falling from an estimated $21 billion to $22.9 billion this year to $15 billion next year-Canadian businesses remain significantly affected, facing ongoing challenges to supply chains and pricing strategies.
The Reuters report, released monday, indicated that the anticipated lessening of tariff impact stems from increasing trade deals between the U.S. and other nations. However, Canada‘s trade relationship with the U.S., heavily reliant on integrated supply chains, leaves it particularly vulnerable to ongoing trade tensions. Many companies have already quantified tariff costs, integrating them into financial forecasts and adjusting sourcing strategies, as reported by PYMNTS last week.
Philadelphia fed President and CEO Anna Paulson recently noted that tariff-induced price increases have been “somewhat smaller than anticipated” and unlikely to create “a lasting imprint on inflation.” She also observed that businesses have found ways to absorb increased costs rather than passing them onto consumers to maintain market share.
Despite these adaptations, a PYMNTS Intelligence report, “The Enterprise Reset: Navigating Tariffs, Supply Chain Shifts and Cost Pressures,” highlights that companies are actively lowering costs, diversifying suppliers, localizing sourcing, and restructuring operations to bolster resilience. The report emphasizes a shift away from traditional business practices, with companies embracing supplier replacements, product redesigns, and just-in-time inventory models.
