Trump’s Tariffs: Trade Wars Might Be on Ice, But Your Business Can’t Afford to Wait

Trump may have put tariffs on pause after strong-arming Canada and Mexico into stricter border security measures, but business owners are still scrambling trying to figure out what will happen next. The reality is, no matter what trade agreements are currently in place, nothing is ever guaranteed.

This latest tariff move—which came when the United States-Mexico-Canada Agreement wasn’t set to be revisited until 2026—proves just that.

Some might wonder how Trump could implement tariffs when we have USMCA (or CUSMA) in place until 2026. The answer? Trump invoked the International Emergency Economic Powers Act (IEEPA) in an unprecedented way, levying major trade barriers all at once against the United States’ three largest trading partners.

This isn’t just a political move; it’s a business lesson. Trade agreements—no matter how solid they appear—can be overturned, bypassed, or renegotiated at any time. If your business relies on a single country for the majority of its trade, you’re vulnerable.

We’ve seen trade shake-ups before. When the North American Free Trade Agreement was first introduced in the 90s, I watched as a business owner I was working with took a drastic measure to protect what he’d built. Convinced that free trade would crush his industry, he sold his company shortly after the agreement came into place. Four years later, that same business—still standing, still thriving—sold for five times the price.

Government policy changes often force business owners to pivot, but quick reactions aren’t always the best decisions. No matter where you’re based or how negotiations unfold, here’s what business leaders should focus on to safeguard their organizations:

Find Other Trade Partners

For decades, Canada and the US have defaulted to importing and exporting to each other because it’s easy, familiar, and geographically convenient. But that strategy is now under threat.

Over the last few days, I’ve seen a rise in “Buy In Canada” sentiment from my Canadian clients. While supporting local businesses is noble, it’s not necessarily a sustainable strategy for companies that are doing a high-volume of sales south of the border. Consider the numbers: Canada’s population is 40 million, while the U.S. has nearly 10 times that. Simply shifting to a "Buy Canadian" model isn’t enough to replace lost U.S. sales.

Yes, interprovincial trade in Canada should be easier—our own internal trade barriers are outdated and unnecessary. But even if they were abolished tomorrow, relying solely on domestic trade still wouldn’t be enough for many organizations. Canadian businesses must expand their customer base beyond North America, targeting markets in Europe, Asia, and beyond.

For American companies, this works both ways. The U.S. depends on Canada for cheaper manufacturing, labor, and natural resources. Over-reliance on any single country—including Canada—creates unnecessary risk. Smart businesses will begin looking for alternative suppliers and production hubs before they’re forced to.

Think Hard About Who You’re Doing Business With

Trade isn’t just about finding new partners—it’s about finding the right ones. Global supply chains are increasingly influenced by geopolitical tensions, labour issues, and security risks.

For example rising geopolitical tensions between the? U.S. and China over the past few years has already prompted companies to rethink supply chains. Businesses now have to consider: the stability of the country they’re importing from; the potential for future tariffs or trade restrictions; as well as ethical concerns such as labour practices and environmental regulations.

Diversification doesn’t just mean selling in multiple markets; it also means sourcing smarter. Relying too heavily on any one country—whether it's the U.S., China, or Mexico—is a long-term liability.

Be Proactive to Maintain Customer Loyalty

If your business is affected by tariffs, your customers will be too. The best way to keep them? Transparency.

No one likes sudden price hikes. But if you keep customers informed—explaining why costs are rising and what steps you’re taking to mitigate the impact—you stand a better chance of retaining them.?

This means proactively communicating the “why” behind pricing changes; exploring alternative suppliers to reduce cost increases; and offering phased adjustments instead of sudden spikes. The businesses that survive these trade shifts will be the ones that adapt before they’re forced to.

Even if we had a 20-year ironclad free trade deal, Trump’s override of the USMCA proves agreements can be broken. Businesses that rely too heavily on a single trade partner—whether it’s Canada relying on the U.S. or U.S. companies relying on Canadian manufacturing—are playing a risky game.

The winners in this new trade landscape will be those who diversify their markets, reconsider their supply chains, and communicate transparently with customers. Trade uncertainty isn’t going away. The question is, will your business be ready for the next shake-up?