When prices go up, businesses change, and people spend less—it affects everyone. Right now, Canada is facing a challenge that could impact jobs, shopping, and even the way companies talk to their customers. Introducing tariffs, things could get more expensive, businesses might struggle, and people may have to adjust their spending habits. As an international student studying and working in marketing, I see how these economic changes shape the way businesses connect with consumers.
What This Means for Businesses and Jobs
The Bank of Canada (BoC) Governor Tiff Macklem has compared the economic impact of tariffs to the COVID-19 crisis. However, he warns that this time, the effects could last much longer. “We may eventually regain our current rate of growth, but the level of output would be permanently lower,” Macklem said in a speech to business leaders (Silvestre, BlogTo, 2025).
Many Canadian businesses rely on exporting goods to the U.S. If tariffs make these products more expensive, fewer people in the U.S. will buy them. This could lead to an 8.5% drop in exports in just one year, causing companies to cut jobs and reduce spending (BoC, 2025). Businesses may have to find new ways to attract customers, shift their marketing strategies, and focus on affordability. Canadian companies that are highly dependent on U.S. exports, such as those in the automotive and agriculture industries, might feel these effects first. The ripple effect could lead to job losses, wage cuts, and a slowdown in hiring, impacting not only those employed in export-driven sectors but also those in retail and service industries across Canada.
How It Affects Consumers
The impact of tariffs will not only be felt by Canadian businesses exporting goods to the U.S. but also by those relying on imports from the U.S. Many products that Canadians regularly purchase—electronics, clothing, car parts, and food—come from the U.S. With tariffs making these imports more expensive, the price of these everyday essentials could rise significantly. This means Canadians will feel the pinch not just on goods that are exported but also on the things they purchase from retailers, particularly those relying on U.S. imports.
Sources:
Macklem, T. (2025, February 21). Speech: Mississauga Board of Trade-Oakville Chamber of Commerce. Bank of Canada. https://www.bankofcanada.ca/multimedia/speech-mississauga-board-of-trade-oakville-chamber-of-commerce/
BlogTO. (2025, February). Bank of Canada warns of potential impact from U.S. tariffs. BlogTO. https://www.blogto.com/city/2025/02/bank-canada-warns-us-tariffs/
CBC News. (2025, January 30). Here’s the Bank of Canada’s worst-case scenario for Trump’s tariffs | YouTube.
CBC. Image of Bank of Canada building https://images.app.goo.gl/7Z8ZdxBSiGEnufP98
Office of Financial Readiness. Consumer behavior Image https://images.app.goo.gl/y4smmcgpTSg53une6
