Tariffs are changing. Is your business prepared?

The impact won’t be limited to organizations that import finished goods directly. Manufacturers, distributors, retailers, construction businesses, and companies that rely on imported components, equipment, and raw materials may also feel the effects as increased costs move through the supply chain.   

In many cases, businesses are still working to understand where tariff exposure exists across their operations, supply chains, customer relationships, and cross-border transactions. While much of the discussion has focused on tariff rates and affected products, many business leaders are asking a more practical question: What should Canadian businesses be doing?  
 

The most important question isn’t “What are the new tariff rates?”  

It’s, “Are we prepared?”   

For organizations that may be affected, the period before implementation provides an opportunity to review several key areas and identify potential planning opportunities to consider going forward.   

Five planning areas to review now   

1. Product classifications 

Canada continues to have tariff remission mechanisms in place that, where eligibility criteria are met, can provide relief from surtaxes and help mitigate the impact of tariffs at time of importation for certain product classifications.  

Custom tariff classification remains a core factor in the importation of products into Canada. Many businesses rely on classifications that were established years ago, without conducting a comprehensive review to determine the accuracy of the declared classification. A proactive review can help confirm the accuracy and identify potential risks or opportunities before additional duties are imposed.  

2. Review customs valuation practices  

Customs duties and tariffs are generally calculated based on the value declared for imported goods. As tariff costs increase, many businesses are exploring opportunities to reduce the customs value of imported products.  

While customs valuation planning may be available in certain circumstances, businesses should exercise caution before making valuation changes solely to reduce tariff exposure. Changes to pricing structures, transfer pricing arrangements, assists, royalties, or other valuation elements can create unintended customs compliance risks if not properly assessed.  

A proactive review can help businesses confirm that current valuation practices remain appropriate, identify potential planning opportunities, and manage compliance risk.  

3. Confirm country of origin 

Country of origin often determines whether tariffs apply.   

As supply chains evolve, businesses should confirm that sourcing arrangements, manufacturing activities, and supporting documentation continue to support their origin determinations. Changes that may appear to be minor from an operational perspective can sometimes have significant tariff implications.   

It’s also important to recognize that goods shipped from the US aren’t always considered US-origin for tariff purposes, while US-origin goods may remain subject to the measures even when routed through another country. Similarly, for goods exported from Canada to the US, tariffs generally apply based on the product's country of origin, meaning the measures apply only to goods determined to be of Canadian origin (based on very specific definitions), regardless of where they are shipped from.  

4. Assess upcoming shipments and purchases   

Businesses should review inventory requirements, planned purchases, and goods currently in transit to understand where tariff impacts may arise.   

Understanding which shipments may be affected can support more informed procurement, inventory, and cash flow decisions. Canada has also confirmed that goods already in transit before the September 8 measures come into force won’t be subject to the new counter-tariffs.   

Businesses should also ensure they maintain appropriate supporting documentation for goods that qualify for in-transit treatment.   

5. Assess customer and revenue exposure 

Businesses that sell into the US should evaluate how tariffs may affect customer demand, pricing expectations, contract negotiations, and future sales activity.   

Understanding which customers, products, or markets may be most affected can help organizations assess potential revenue and cash flow impacts, identify areas of risk, and develop strategies to respond to changing market conditions.   

Additional areas worth reviewing   

Beyond these immediate planning opportunities, businesses may also wish to:   

• Assess customer, revenue, and cash flow exposure related to tariff-affected products.   
• Review pricing, contractual, and cost-recovery strategies.   
• Evaluate supply chain resilience and sourcing strategies.   
• Identify available customs and duty relief opportunities.   
• Review customs valuation practices.   
• Assess tariff exposure before goods reach the border.   

Organizations may also benefit from bringing together finance, procurement, operations, sales, and customs stakeholders to understand the broader business implications and coordinate response strategies.   
 

Tariffs create risk. Preparation creates opportunity.   

Trade policy will continue to evolve. While businesses cannot control those changes, they can control how prepared they are to respond.  

Recent Canadian and US tariff measures are a reminder that trade policy can affect far more than customs compliance. Depending on a company's operations, tariffs may influence procurement decisions, supply chains, pricing strategies, customer demand, cash flow, and profitability across the organization.  

Businesses that proactively assess their exposure today will be better positioned to manage costs, identify opportunities, and respond with confidence as trade conditions continue to change.   

How we can help   

Our Indirect Tax and Customs & Global Trade professionals help businesses assess tariff exposure, identify planning opportunities, navigate customs obligations, and respond to changing trade measures.   

If your organization imports goods, relies on cross-border supply chains, or is evaluating the impact of recent tariff developments, our team can help you understand the potential business impacts and evaluate practical response strategies.  In addition, our Advisory Services team can support organizations in key areas such as financial performance, operational efficiency, process improvement, and strategic planning to help navigate uncertainty and build resilience.  

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^Disclaimer

^{The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Doane Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.}