Weathering a Long, Cold Winter, Eh: Tariffs, Relief, and Resilience

When Canada imposed retaliatory tariffs on a broad spectrum of US goods in March 2025, it was more than a defensive strategy. Rather, it was part of a bigger shift in how Canada—and other countries—are rethinking their international trade policies with their global partners. This reassessment came amid recent changes in US trade policy, which have increasingly emphasized domestic supply chains and protectionist measures.

For Canadian businesses that trade with the US, the shift in policy generated real financial pressure and a lot of uncertainty. Consider that more than 48,000 Canadian companies exported goods in 2024,¹ and over 85% of those exported goods (over 75% by value) went to the US.² Understandably, the introduction of tariffs in early 2025 significantly impacted a large segment of the economy.

For accounting professionals, especially those of us working with or for businesses that engage in the cross-border trade of goods, this change has made our role more complex. Now, it’s less about handling paperwork or tracking duties and more about helping businesses understand where they’re exposed, how to manage rising costs, and how to make better decisions in a trade environment that’s harder to predict.

What actually happened

On March 4, 2025, Canada imposed a 25% surtax on a wide range of US-origin goods. This was just the beginning. Additional surtaxes were introduced on March 13, targeting US steel, aluminum, and other related imports, and then again on April 9, extending the scope to include motor vehicles. As a result, supply chains were disrupted, costs went up, and businesses had to scramble to adjust.

By September 1, 2025, many but not all of these surtaxes had been lifted.³ Key sectors—namely steel, aluminum, and automotive—are still dealing with the fallout. And even companies that are no longer directly affected still have cause for concern, as the experience highlighted vulnerabilities in their supply chain dependencies.

This was not the first time that Canada found itself in a trade dispute with the United States. In 2018, under the first Trump administration, Canadian exports of steel and aluminum were subject to extra US tariffs. Canada responded by implementing reciprocal tariffs on US steel and aluminum goods.⁴ Though smaller in scale, this foreshadowed the kind of disruption that was to come.

Now, more than ever, Canadian businesses are taking a closer look at their exposure. Have they been too dependent on US suppliers and/or customers? Do they have contingency plans in place? Can they absorb the added costs, or is it commercially feasible to pass these costs on to customers? These are the kinds of questions tax and customs professionals should be helping clients answer—not only in hindsight, but also in preparation for whatever comes next.

Relief programs: Useful, but not simple

To assist businesses, the federal government introduced a framework and process for considering remission requests filed under specific circumstances.⁵ These are not automatic exemptions to Canadian surtaxes imposed on US imports, as businesses must verify that the goods will be used in specific ways. For instance, companies importing goods for manufacturing or processing need to verify the intended use of those goods. To that end, they must maintain meticulous records, properly track supply chains, and accurately document financial data—particularly as remission claims may be subject to audit.

This is not an easy task for importers, who first have to determine if their products are even eligible for remission. Timing adds another layer of complexity. Businesses have, in some cases, had to pay the duties upfront and subsequently apply for a remission refund. The lag between costs and receipts can also strain cash flow, so accounting professionals need to help businesses work through cashflow forecasts. We can also help them develop a solid financial justification for relief claims, manage business expectations, and ensure all documentation is audit-ready. The many CPAs who support smaller businesses know that this kind of expert support can make the difference between successfully securing relief and getting nothing (or facing subsequent reassessments).

Regional Tariff Response Initiative: A BC-specific opportunity

The Regional Tariff Response Initiative (RTRI) provides businesses in BC with support in recovering from recent tariff impacts and, more importantly, in preparing for what’s ahead. The RTRI is designed to assist BC-based businesses in strengthening their operations through investment in tools, processes, and systems that will enhance resilience, flexibility, and competitiveness in the face of future global trade disruptions.

To be eligible for the RTRI, for-profit businesses must:

• Be incorporated;
• Be staffed in BC;
• Have between 10 and 499 full-time employees;
• Have been in continuous and viable operation for at least three years leading up to March 21, 2025; and
• Have at least two complete years of audited financial statements.⁶

In addition, these businesses must demonstrate either that they’ve had at least 25% of their sales go to the US or China or that they have been, or very likely will be, impacted by ongoing trade disruptions.⁷

Funding is available as non-repayable contributions of up to $1 million (covering 50% of eligible costs) or as interest-free repayable contributions ranging from $200,000 to $10 million (covering up to 75% of eligible costs).⁸

This is where things get interesting for accounting professionals. Supporting businesses through the RTRI application process involves creating a solid business case that demonstrates how the investment will pay off. Practitioners will also want to determine whether the RTRI-funded investment overlaps with other government programs, such as the Scientific Research and Experimental Development tax credit.

RTRI isn’t a quick fix, and the work doesn’t end once funding is secured. Instead, RTRI gives businesses a chance to build long-term strength, whether this means cutting costs, reaching out to new markets, and/or improving supply chain resilience. The right advice can make all the difference here, particularly for businesses that are navigating government trade-related funding and support for the first time. Having someone who understands the program and can guide them through the process isn’t just helpful—it’s essential.

What accounting professionals should be thinking about now

The ongoing tariff situation has brought several key issues to the forefront, and they’re ones that tax and customs practitioners are well positioned to tackle.

One important consideration is cost allocation. When new tariffs are imposed, businesses face difficult decisions. Some may choose to absorb the additional costs, while others might increase prices or seek alternative suppliers. Each option can significantly affect financial planning. Forecasting, in particular, requires a more dynamic approach, as relying on traditional static budgets isn’t practical in an environment where trade policies and rules can shift overnight. To the extent possible, businesses should implement flexible forecasting methods and regularly stress-test their financial models against different tariff scenarios. This will enable them to stay agile and respond quickly when conditions shift.

As always, education and awareness remain essential. Many small businesses are still unaware of the relief programs and support measures available to them. Accounting professionals and business advisors can play a proactive role by developing clear checklists, providing timely updates, and even organizing workshops to ensure businesses are informed, prepared, and able to take advantage of available resources.

Looking ahead

Here are some things to be mindful of as we continue into 2026. The upcoming US midterm elections could lead to yet more changes in trade policy, particularly if protectionist policy discussions continue to gain traction. We may see the introduction of new tariffs or trade barriers that could further disrupt supply chains and increase costs for businesses. It’s important for us as accounting professionals—whether working in-house or in advisory roles—to stay informed and help businesses anticipate and respond to these developments.

Additionally, the scheduled review of the Canada–United States–Mexico Agreement by all three member countries in 2026 is something to watch for, as any renegotiation could affect cross-border trade rules and trigger both new risks and new opportunities.⁹

It is also important to note that some of the relief programs, such as remission and RTRI, are time limited. Businesses that wait too long to seek relief may miss their chance. We should be advising decision-makers to act while they still have the opportunity.

Final thoughts

The start of the 2025 trade disputes didn’t signal a passing chill—it signalled a season of trade uncertainty. Businesses should be ready to weather the current trade environment.

Accounting professionals should seize the moment. Whether guiding clients through relief programs, modelling the financial effects of trade changes, or assisting clients in planning for future disruptions, we can play a vital role in helping Canadian businesses build resilience and remain viable in an environment where nothing is certain but change.

Katherine Reinhardt, CPA, is a senior manager in indirect tax services with Deloitte Canada in Vancouver, where she focuses on GST/HST and PST consulting and advisory services.

Ben Borojeni, BA, LLB, is senior manager in global trade advisory services with Deloitte Canada in Toronto, where he advises on customs, duties, and trade compliance.

This article was originally published in the January/February 2026 issue of CPABC in Focus.

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