Canadian Business Outlook Gloomy as Tariffs Persist
TORONTO – A persistent โshadow of tariffs continues too darken the Canadian business landscape,contributing to a โgloomy outlook despite some softening of global impacts,according to recent reports.While global companies anticipate a decrease in tariff costs-falling โfrom an estimated $21 billionโข to $22.9 billion this year toโค $15โข billion next year-Canadian businesses remain significantly affected, facing ongoing challenges to supply chains and pricingโข strategies.
The Reuters report, released monday, indicated that the anticipated โlessening of tariff impact stems from increasing trade โขdealsโ between the โU.S. and other nations. However, Canada‘s trade relationship โขwith the โU.S., heavily reliantโฃ onโฃ integrated โsupply chains, leaves it particularly โvulnerable toโค ongoing trade tensions. Many companies have alreadyโ quantified tariff costs, integrating them into financial forecasts and adjusting sourcing strategies, as reported by โPYMNTS last week.โ
Philadelphia fedโ Presidentโค and CEO Anna Paulsonโ recently notedโ that tariff-induced price increases have been “somewhat โขsmaller thanโ anticipated” and unlikely โขto create “a lasting imprint on inflation.” She also โขobserved that businesses have โfound โways to absorb increased costs rather than passing them onto consumers toโฃ maintain marketโ share.
Despiteโค these adaptations, a PYMNTS โคIntelligence report, “The Enterpriseโ Reset: Navigatingโ Tariffs, Supply โขChain Shifts and Cost โคPressures,” highlights that companies are โactively lowering costs, diversifyingโ suppliers, localizing โsourcing, and restructuring โoperations to bolster resilience. The report emphasizes a shift โaway from traditional business practices,โ with companies embracing supplier replacements, product redesigns, and just-in-time inventory models.
