Markets Plus Leading Through Uncertainty: Navigating the Impacts of U.S. Tariffs on Canada
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Mar 12, 2025 Guests Shelly Kaushik, Senior Economist at BMO, Jason Giovannetti, Director of Canadian Commercial FX Sales, and Swaroop Shenoi, Vice President of Global Transaction Banking at BMO, dive into the impact of U.S. tariffs on Canada. They discuss how Canadian businesses are adapting to economic challenges and strategies for navigating tariff-induced currency volatility. The conversation highlights the need for effective communication between businesses and experts, as well as exploring new markets and financial solutions to manage risk.
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Unprecedented Tariffs on Canadian Exports
- Canada faces unprecedented broad tariffs on exports to the U.S., excluding energy and critical minerals.
- This situation necessitates preparation from businesses, consumers, and policymakers.
Mitigating Tariff Impact on Importers
- Assess direct and indirect import costs from the U.S. due to tariffs, especially in complex supply chains like automotive.
- Explore alternative suppliers and prepare for potential profit margin impacts.
Minimizing Tariff Risks
- Collaborate with suppliers to share increased costs and evaluate diversifying supply chains.
- Explore working capital solutions to manage risks associated with new suppliers.