Tariffs and turbulence: How Canadian SMBs can play to their strengths and win

The global economy is messy—and right now, Canadian SMBs are caught in the crossfire. Tariffs, trade wars and rising costs aren’t just headlines; they’re hitting the bottom line hard. But for the smart and scrappy? This is the moment to double down on what works.

Canadian SMBs have never had it easy. But they’ve always been resilient. Tariffs are just the latest pressure test—and for businesses willing to adapt, this is the time to build a better operation from the inside out.

Nearly 7 in 10 small importers (67%) say they’ve been forced to pay Canada’s full retaliatory tariffs on U.S. goods, according to the Canadian Federation of Independent Business (CFIB). That’s not a projection—it’s a direct hit on profit margins.

The tough reality? Owners are being forced to either absorb costs (cutting into profits or jobs) or pass them on to customers (risking loyalty and retention). And the ripple effect runs deep: higher prices, tighter margins and a business environment where unpredictability is the only constant.

But here’s the thing: reacting to every external threat only gets you so far. The SMBs that will thrive are the ones building proactive, resilient operations from within.

In a landscape shaped by global headwinds, your people strategy becomes your power play. Economic volatility often leads to local labour shortages—but smart employers are going remote, widening their talent pool beyond postcode boundaries.

That means hiring for skill, not just proximity. It means tapping into the best talent across Canada, not just the best within city limits.

At the same time, keeping great people is just as important as finding them. Retention has to be a top priority. A constant churn of hiring and exits drains time, morale and money. Instead, SMBs can focus on building cultures that people want to stay in—through benefits, flexibility and clear career pathways.

Upskilling matters, too. The businesses that survive uncertainty are the ones with teams that can adapt and evolve. Cross-training and development aren’t perks anymore—they’re the foundation of long-term durability.

Use tech to buy back time

No one starts a business to get bogged down in admin. But that’s exactly what happens during times of flux—payroll, compliance and HR demands only get messier when external conditions shift.

That’s why the savviest SMBs are investing in platforms that automate the admin and unlock growth.

Business leaders today need to move beyond simply managing their teams and focus on empowering them with technology. In a world of complex calculations and meticulous record-keeping, a single, integrated platform can take the administrative burden off their plate. 

At Employment Hero, we’ve seen how technology that helps with everything from time off management and payroll to digital document storage helps businesses streamline operations and boost compliance, freeing leaders to focus on strategic growth.

That’s the shift—less firefighting, more forward planning.

There’s no switch to flip that’ll make tariffs or trade issues disappear. But there is a choice: react to every crisis or build an SMB that’s stronger, more agile and ready for whatever comes next.

By doubling down on your people, investing in smart technology and building a business that’s future-fit, you’re not just playing defence. You’re stepping into the role of the hero—leading your team through the chaos with clarity, courage and control.

This moment? It’s not just a challenge. It’s an opportunity.