As trade tensions between Canada and the United States escalate, Brampton businesses are grappling with the economic ripple effects. With some tariffs already in place and uncertainty looming over potential future measures, companies across industries are bracing for significant challenges.
In last week’s Advocate I shared our community’s concerns regarding tariffs and expressed the Brampton Board of Trade’s desire to hear from our members. Below are some of the initial insights from our Tariff Survey – the findings reveal a business community deeply intertwined with US trade, facing rising costs, potential job losses, and strategic shifts to mitigate risks.
The Profile of Affected Businesses
- Respondents were from a range of industries including manufacturing, education, finance, hospitality, retail, technology, and mining. The majority of respondents came from the manufacturing sector, highlighting the industry’s deep exposure to cross-border trade
- Business sizes varied, with 50% employing fewer than 10 people, 30% between 10 and 50 employees, and 5% with over 500 employees
- Half of the respondents engage in cross-border trade with the US, and 50% of those import and export across the border
- Only 7% have a primary market outside Canada and the US, underscoring a heavy reliance on US trade
- A significant 30% of respondents indicated that over 75% of their business activity depends on the US market
Key Challenges and Anticipated Impacts
With tariffs already affecting certain sectors, Brampton businesses are expressing growing concern about the potential fallout.
- Cost Pressures: The most commonly cited challenge is an increase in operational costs (66%), driven by higher input costs due to tariffs on raw materials and goods
- Sales Declines: 60% of businesses expect declining sales, with reduced competitiveness in the US market making it harder to maintain contracts and customers
- Price Increases & Delays: Rising costs are prompting 60% of businesses to raise prices, which could dampen demand, while 33% anticipate production delays due to disrupted supply chains
- Workforce & Investment Adjustments: 25% of businesses foresee layoffs as a direct consequence, while 12% are considering shifting production to US facilities to mitigate cost increases. Additionally, 66% report that tariffs will influence decisions about future US investments
- Uncertainty & Profitability: The two greatest concerns among respondents are reduced profitability and difficulty in business planning (37% each), reflecting the unpredictable nature of ongoing trade policies
Strategies for Mitigation
Despite these challenges, businesses are proactively seeking ways to adapt:
- Supplier Diversification (56%): Many businesses are looking for alternative suppliers outside the US to reduce exposure to tariffs
- Price Adjustments & Market Expansion (40%): Companies are increasing prices to offset costs and exploring new international markets to lessen dependency on the US
- Government Advocacy (31%): There is a strong call for government intervention, including industry-specific support measures and trade policy adjustments
- Fiscal Conservatism (40%): Many businesses are slowing production, delaying investments, and adopting cost-cutting measures to weather uncertainty
The Need for Policy Action
The overwhelming majority of respondents (87%) believe that Canadian businesses must reduce reliance on the US and diversify into other global markets. Additionally, all surveyed businesses support lifting interprovincial trade barriers to strengthen domestic market opportunities.
Given this strong sentiment, there is a clear alignment with what the Brampton Board of Trade has been doing thus far, but with an increased urgency given the clear predicament our local businesses find themselves facing. Our current actions, and how you can help us be more impactful:
| Current BBOT Approach | Where you can help |
| Advocating for policies that remove interprovincial trade restrictions | Let us know how the removal of barriers will help your particular industry so we may advise provincial and federal decision makers on how best to proceed |
| Pushing for targeted government support, particularly in sectors that play a large role in our local economy such as manufacturing, food processing, and retail | Help us understand what supports would best help your industry so we may best advocate at all levels of government for what our community needs. Especially if you’re in an industry that isn’t getting talked about enough |
| Expanding our Trade Network initiatives to help businesses identify and enter new international markets | Tell us what markets you’re interested in so we can set up education sessions with the right experts to assist you in diversifying your business |
| Raising the profile of our Built in Brampton campaign to support purchasing products and services that support Brampton jobs | Submit your products to our Built in Brampton page and reference it when making your purchasing decisions |
| Communicating with US Boards of Trade and Chambers of Commerce to ensure our American partners are aware of the impacts of tariffs to their local economies | Share what specific US markets you most rely on or have business interests in |
It’s imperative that we hear from you during these times so we can continue to fight for what Brampton businesses need. Please complete our Tariff Survey if you haven’t already done so and/or reach out to me directly at jaipaul@bramptonbot.com or at 416.258.6952 to share your input.
Of course, these are early days. As existing tariffs take effect and the threat of further tariffs and trade restrictions looms, Brampton businesses are navigating a rapidly evolving landscape. The Brampton Board of Trade will continue to champion policies and initiatives that protect and strengthen our local business community in these uncertain times and look forward to working alongside you.
Jaipaul Massey-Singh
CEO
