TORONTO — Impending U.S. tariffs have pushed Canadian companies to stockpile goods, cut back staff, put projects on hold and whatever else they think will help them survive the economic turmoil ahead.
U.S. President Donald Trump is set to unveil his administration’s latest tariffs on numerous countries later today, but it’s unclear what their scope or scale might be.
The threats have forced all sorts of company responses, ranging from businesses rolling out advertising to emphasize their Canadian ties, looking to secure new suppliers, and holding off on providing financial forecasts because of the huge uncertainty.
Many responses have meant preparing for lower demand, from Pantyhose-maker Sheertex laying off 40 per cent of its staff citing the tariff threat to airlines cutting back flights to the U.S.
The drop in demand can also be seen in S&P Global Canada’s latest barometer of manufacturing activity that showed a sharp drop in March, following a decline in February as factories see fewer orders and less output.
The lower activity means 27 per cent of businesses are looking to reduce production capacity or head count, according to a survey from PwC Canada, but companies aren’t just accepting the hit — almost three-quarters of responding businesses also said they’re looking to open or expand operations in other markets.
This report by The Canadian Press was first published April 2, 2025.
U.S. President Donald Trump’s reciprocal tariffs on trading partners are set to take effect today, a day he has proclaimed as “Liberation Day” for American trade. CTV News has extensive coverage across all platforms:
- CTVNews.ca has in-depth coverage, real-time updates, and expert analysis on what the tariffs will mean for Canadians.
- CP24.com has developments out of Queen’s Park and what the tariffs mean for the people of the GTHA.
- BNNBloomberg.ca has what this means for the business community, investors, and the market.
