The looming impact of U.S. tariffs on Canada and Canadian goods has led to significant fears and challenges for many industries. From trade disruptions to rising costs, the implications are wide-ranging and unpredictable.
Canadian associations, especially those representing heavily affected industries, need clear strategies and proactive efforts to navigate this complex situation and mitigate the fallout. Here are some key tips to help association members survive and thrive despite these external pressures.
1. Collaborate and initiate
Team up and collaborate with American associations/partners: One of the most effective strategies Canadian associations can implement to combat the negative impact of U.S. tariffs is collaboration with American partners with the same interests. This could be particularly beneficial for industries where cross-border supply chains are integral to operations, such as the automotive industry.
Ford CEO Jim Farley recently described 25% tariffs on steel and aluminum, as well as threatened levies of the same amount on Mexico and Canada, as currently adding “a lot of costs, and a lot of chaos” to the industry. Farley has pointed out that unpredictability in tariffs and trade relations only hampers the growth of businesses, affecting not just the companies but the people they employ.
By aligning with U.S. associations, consumer lobby groups, and U.S. manufacturers, Canadian associations such as the Automotive Parts Manufacturers’ Association (APMA) can amplify this message and advocate for the stability necessary for growth on both sides of the border.
Help members explore new non-American markets: The next tactic for mitigating the impact of the U.S. tariffs on Canada is for associations to help their members explore different global markets. One way to do this is by collaborating with international trade experts who can provide members with the tools and knowledge they need to expand into new markets. Offering programs, workshops, and even grants will help businesses to reduce their reliance on the U.S. market.
For example, specific export training programs, such as Economic Development Canada’s (EDC) Trade Accelerator Program, offer Canadian businesses the initial tools and strategies to explore new international markets, helping to counterbalance the impacts of tariffs on U.S. exports.
2. Be vocal and patriotic
Communicating your industry’s pains and raising awareness: this is crucial to gaining support from both the business community and the public. For example, the Canadian Steel Producers Association, as well as the Manufacturiers & Exportateurs du Québec, released statements outlining the challenges Canadian steel producers faced due to U.S. tariffs, particularly on aluminum and steel imports. They highlighted the loss of competitiveness in the North American market and asked the Canadian government to take a firm stance, such as taking retaliatory measures or offering targeted financial aid. This paper was then used in lobbying efforts with Canadian federal officials to develop measures that would offset the impact of U.S. tariffs on Canada.
The Senate chamber of the Canadian Parliament (Sencanada.ca)
Visibility in Canadian and American media: This is an essential tool for associations to convey their members’ struggles. Canadian associations should actively engage in public relations campaigns to inform the media and educate consumers on both sides of the border. By holding media briefings, issuing press releases, and conducting interviews, associations can bring their issues to the forefront of public discussion in Canada and in the U.S.
That’s what Tom Osborne, General Manager of Dairy Farmers of Newfoundland and Labrador, has done. In an interview with CBC News, he explained the reality of the U.S.-Canada dairy trade and detailed the potential effects of tariffs on the industry. This helped spread awareness of Canadian dairy farmers’ point of view.
Supporting domestic suppliers: Finally, as Canadian businesses face higher costs due to U.S. tariffs, supporting domestic suppliers becomes more important than ever. Associations can assist by preparing and promoting a “Made in Canada” list of products and services for their members. This list could be a directory or database of Canadian manufacturers and suppliers that members can turn to in order to minimize reliance on U.S.-based imports.
As an example, the Canadian Federation of Independent Business (CFIB) has created a free “Proudly Canadian Owned” poster they offer for their members to display. By favouring Canadian suppliers, businesses can not only mitigate the impact of U.S. tariffs on Canada but also support the broader Canadian economy, fostering growth within the country and building more resilient supply chains.
3. Stay focused on your mission
Unite your members: In times of crisis, the power of unity cannot be underestimated. Canadian associations should unite their members against the impact of U.S. tariffs on Canada. They can foster a sense of community among members by creating platforms for sharing success stories. By showcasing innovative ways in which businesses have successfully dealt with tariffs, associations can offer inspiration and practical strategies to others who may be struggling.
Another initiative of the CFIB was to gather resources and organize colloquiums, such as the Business Transitions Forum (BTF). In this forum, members can discuss innovative strategies to deal with tariff increases, including finding alternative suppliers and improving efficiency.
Stay in touch with your members: Constant communication is key during uncertain times. Canadian associations should regularly update their members on how the association is addressing the impact of U.S. tariffs and what support is available. This can be done through email newsletters, member-only webinars, or regular reports outlining progress, upcoming initiatives, and ways the association is working to assist its members.
Keeping lines of communication open ensures that members feel supported and informed. It also builds trust between the association and its members, which is crucial during times of adversity.
The Canadian Association of Petroleum Producers communicates with its members through podcasts, speeches, email newsletters, industry reports, and virtual meetings to update them on the tariff situation and government responses regularly. These communications include tips on how to manage increased costs and how to take advantage of potential tariff relief programs from the Canadian government.
Assess the tariffs’ financial impact and prepare for member attrition: Last but not least, as businesses struggle to cope with increased costs, some may be forced to scale back or even close their doors. To prepare for this, associations should assess the financial impact on their members and develop a plan to support those who may be at risk.
This could involve offering financial aid, discounts on membership fees, or access to special programs designed to help businesses weather the storm. By anticipating potential losses and proactively addressing the issue, Canadian associations can help minimize the number of members who are forced to exit the community.
The Impact of U.S. Tariffs on Canada:
Final Words
The threat of tariffs on Canadian industries is a pressing issue that requires swift and strategic action from Canadian associations. By collaborating with American partners, communicating clearly with government officials, raising media awareness, and supporting members in exploring new markets, associations can help their members navigate these turbulent times. Additionally, fostering unity, supporting domestic suppliers, and keeping in constant communication with members will strengthen the resilience of the industry as a whole. By addressing the impact of U.S. tariffs head-on, Canadian associations can turn a challenging situation into an opportunity for growth and innovation.
