U.S. President Donald Trump threatens to impose tariffs of 25% on products coming from Canada and Mexico. Whether these tariffs are ultimately implemented or not, this threat creates significant uncertainty for our SMEs. One key question arises: how can export strategies be adapted in such a context?
Direct consequences for exporters
If these tariffs are imposed, Quebec products risk becoming less competitive in the United States, the primary market for Quebec exports. For businesses, this means:
- An immediate increase in prices for American customers.
- Increased pressure on profit margins.
- Potential disruptions in cross-border supply chains.
In sectors such as agri-food, technology, and manufactured goods—where competition is already fierce—this new burden could make things even more challenging. However, while this situation is concerning, it is not without solutions.
Diversification and resilience: The keys to adaptation
Quebec SMEs have repeatedly demonstrated their ability to bounce back in the face of adversity. Diversification, for instance, is a strategy that is often underestimated. If the U.S. market becomes more challenging, why not explore Europe or Asia?
Thanks to trade agreements like CETA (Europe) and CPTPP (Asia-Pacific), these markets offer duty-free opportunities while valuing high-quality products like those from Quebec.
It may also be strategic to rethink market entry approaches in the United States. Establishing a subsidiary, collaborating with local partners, or investing in hybrid solutions such as an advanced warehouse can help bypass tariffs and maintain a strong presence in this key market.
Do you need support for your export projects? Contact our International Business Commissioners.
Betting on innovation to stay competitive
In addition to diversifying their markets, Quebec SMEs can stand out by focusing on innovation. Whether by developing unique products or emphasizing eco-friendly practices, they can justify higher prices to discerning consumers. Innovation in production processes, design, or business models can also provide a competitive edge, even in a complex tariff environment.
Maximizing available tools and resources
Finally, remember that you are not alone. Various resources are available to support you, including grants for exploring new markets, advisory services, and tools to optimize your operations.
Our international trade experts from the Business Services of the Chamber of Commerce of Metropolitan Montreal are already assisting companies like yours in their growth. We help identify promising markets, rethink export strategies, and find solutions tailored to your challenges.
A challenge to turn into business opportunities
Trade is constantly evolving, and every change, even a difficult one, can become an opportunity to stand out. The key is to stay agile, plan for the long term, and surround yourself with the right partners.
If this announcement becomes a reality, will it be a challenge? Absolutely. But with the right actions taken now, it could also become an opportunity to turn a threat into a springboard for your business.
Pauline Mallet
International Business Commissioners
Chamber of Commerce of Metropolitan Montreal