Guide
Tariffs and counter-tariffs between Canada and the United States since 2025 have changed costs and orders for many Canadian businesses. This guide covers the cash-flow side: what to measure, what to renegotiate and when short-term funding helps or hurts.
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Short answer: List every input bought from and product sold to the United States with monthly volumes and who pays the tariff, then protect margin with explained price changes and alternative suppliers. Plan for slower or smaller orders, track relief programs, and use short-term funding only for timing gaps, not to absorb a permanent cost increase.
Key facts
Related: Practical Business Funding Guides for Canadian Owners · Business Funding Requirements in Canada · Documents Needed for Business Funding in Canada · Business Funding Affordability Calculator (CAD) · Funding Readiness Score Canada: Free 30-Second Check
Tariffs and counter-tariffs between Canada and the United States since 2025 have changed costs and orders for many Canadian businesses. This guide covers the cash-flow side: what to measure, what to renegotiate and when short-term funding helps or hurts.
List every input you buy from the United States, and every product you sell there, with monthly volumes. For each line, note who pays the tariff under your terms and whether the price you pay or receive has already changed.
Many owners discover that the direct tariff is smaller than the knock-on effects: suppliers raising prices on untariffed goods, customers delaying orders and freight routes changing.
Review price lists for products whose input costs rose. Small, explained increases are usually accepted better than one large increase later.
Ask suppliers about alternative sources in Canada or other countries, and about splitting cost increases rather than passing them through in full.
If US customers are pausing orders, forecast with the lower volume for at least two quarters. Cut or defer costs tied to the lost volume before cash runs low.
Look for buyers in other provinces or markets. Government export programs and trade commissioners can help identify alternatives.
Federal and provincial governments have announced support measures for businesses affected by tariffs, including financing through Crown corporations and changes to existing programs. Check current programs, because they change.
Keep records of tariff costs paid; some support programs and remission processes require them.
Short-term funding can bridge a defined gap, such as paying for inventory sourced from a new supplier before sales resume. It does not fix a permanent loss of margin.
If tariffs have permanently cut your margin, adjust prices, costs or markets first. Borrowing to keep an unprofitable line running only delays the decision.
Guides like this one are general education written for Canadian owners. They are most useful when you turn them into a few concrete actions with dates, and revisit them when your numbers change. If funding is part of your plan, the same preparation that makes the plan work, clear numbers and a specific purpose, also makes an application faster and stronger.
Merchant Fund Express reviews Canadian businesses in every province and territory. If you would like a specific answer for your business rather than general guidance, send a signed application and your last four months of business bank statements, or call (305) 384-8391 first to ask a question.
Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.
It is general education. Your file and agreements are specific, so read them and ask questions.
Gather four months of statements and write what the money is for in one sentence.
Yes. Apply once and the file is matched to the structure that fits.
Educational information only. It is not legal, tax or accounting advice.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
