What Does it Really Mean to be a Canadian Business in the Era of Tariffs?

What Does it Really Mean to be a Canadian Business in the Era of Tariffs?

The Current Tariff Situation: A Challenge for Small Businesses

As we enter uncertain times with the ongoing tariff situation, many small businesses in Canada are facing an uphill battle. The new regulations and duties on imported goods are raising questions about what it truly means to be a “Canadian business.” For many small business owners like myself, this question is complicated, especially when sourcing products and materials from outside of Canada.

 

What Makes a Business “Canadian”?

A Canadian business can still be considered Canadian if it is registered in Canada, if its owners and team are Canadian, even if some or all of the products are not made here. In my case, I run my business entirely within Canada, but I had to source my recycled polyester dog toys overseas because no Canadian manufacturers were able to produce this material. After searching for over six months for a local supplier, I had no choice but to look internationally.

Sourcing Products from Overseas: Is That a Problem for Being Canadian?

Here’s where the confusion lies. Does this make me any less of a Canadian business just because some of my products are sourced outside of Canada? I don’t believe it should. Now, with the new tariffs, does this mean that small businesses, who often have limited options for sourcing, should be excluded from the support they deserve? Absolutely not. We need to be empathetic and understand that, for many of us, choosing overseas suppliers wasn’t a decision we made lightly.

Local Sourcing: More Expensive, Less Accessible (*Sometimes)

But here's another tough reality: As an example, let's say a small Canadian businesses decided to source locally, the costs of materials could potentially more than double. This would likely push price points beyond what most consumers are willing to spend, making it difficult for these businesses to remain competitive. In many cases, the expense of local sourcing just isn’t feasible without alienating customers who would struggle to afford those products.

Standing Together as a Community

In the face of these changes, it's important to recognize that small business owners are already stretched thin. We must show grace and support each other through this, knowing that many businesses didn’t make these decisions—they may have had no other options. Boycotting Canadian businesses that may source products from outside Canada isn’t necessarily the answer. It would only hurt the very people we should be supporting during this difficult time.

Empathy and Support: The Key to Overcoming Challenges

Instead, we need to stand united. Small businesses across Canada are the lifeblood of our communities, and we must ensure we continue to support each other—whether we’re sourcing locally or globally. We need to remember that the current challenges were not caused by business owners, but by broader decisions made by those in power. Let’s not allow the actions of one individual to pit us against each other.

Surviving and Thriving Together

Now is the time to stay positive, show empathy, and ensure we get through this together. Support local—but also support small businesses, no matter where their products are sourced. In the end, we all have one common goal: to survive and thrive as a community <3

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