How will tariffs and counter-tariffs impact businesses and residents in Ottawa?
On Tuesday, March 4th, the U.S. implemented 25% tariffs on almost all Canadian goods including a 10% tariff on Canadian energy. In response, the federal government implemented 25 per cent tariffs on many American goods entering Canada. The situation is dynamic and rapidly evolving, so stay updated on the latest reliable facts and figures through the news.
The City of Ottawa has created an online resource to provide information for residents and business owners to help them navigate the potentially choppy waters of tariffs and counter-tariffs.
Tariffs are a tax on imported goods, paid by the person or company that imports them. The cost of the tariff is typically passed on to the consumer in the receiving market in the form of higher prices, similar to a sales tax.
Due to U.S. tariffs and Canadian counter-tariffs, Canadian consumers will experience higher prices when purchasing goods imported from the U.S. as well as for domestically produced goods with American components.
Some tariff impacts could be:
A decrease in sales for local businesses who export significantly to the U.S.
Higher prices for products imported from the U.S.
A decrease in sales for local businesses that sell U.S. products, due to inevitably higher prices
Here are some resources from expert sources to help you stay informed and support Canadian businesses:
Ottawa Board of Trade – U.S. Tariff Statement↗
Ottawa Coalition of Business Improvement Areas – Ottawa’s BIAs↗
Government of Canada – List of U.S. products subject to counter-tariffs↗
Made in Canada – Tool for finding Canadian goods↗
Canadian Federation of Independent Business – Overview of U.S. tariffs↗
Canadian Chamber of Commerce – Canada-U.S. trade tracker↗
Export Development Canada – How tariffs work↗
Bank of Canada – Evaluating the potential impacts of U.S. tariffs↗
And we always encourage you to support Ottawa-based businesses. Remember to buy local and then share your positive shopping and dining experiences with friends and family. Support area businesses and entrepreneurs on social media. Amplifying their messaging or providing positive reviews can have an enormous impact for them.
Your city, your ideas!
Connecting businesses with resources is one example of how we work with our partners to create prosperity for our economy during both prosperous and challenging times. Do you have ideas related to this or other City services? Share your ideas at engage.ottawa.ca↗.
For more information on City programs and services, visit ottawa.ca↗, call 3-1-1 (TTY: 613-580-2401) or 613-580-2400 to contact the City using Canada Video Relay Service. You can also connect with us through Facebook↗, X (formerly Twitter)↗ and Instagram↗.