On February 1, 2025, the U.S. government announced a 25% tariff on Canadian imports. While industries like manufacturing, energy, mining, and forestry will feel the brunt of these costs, the ripple effects may impact also impact IT and digital marketing in general, with things such as:

• Higher hardware prices and delays from the integrated supply chain between Canada and the US, and US and China
• Higher software subscription prices for SaaS platforms due to increased costs
• Tariffs on small packages shipping from Canadian e-commerce sites
• Increased cost per click for paid ads from a weakening Canadian dollar
• Consumer boycotting of foreign brands
• Rise in state-sponsored cyberattacks
• Sudden blocking of services
• Cloud and data hosting price increases

Let’s explore each one in detail along with potential actions you can take to minimize impact.

1) Higher Hardware Prices and Supply Chain Delays

Canada relies heavily on U.S. and Chinese imports for IT infrastructure—servers, networking gear, and electronics. With tariffs driving up costs and creating supply chain bottlenecks, businesses should audit existing hardware to extend its lifecycle and shift to cloud-first solutions. For example, use older laptops and workstations as jump stations to log into cloud machines.

Let Smartt help you optimize your IT investment, including lifecycle management, cloud migrations, affordable cloud hosting, and even hardware purchase credits through our FlexHours program.

2) Rising Software Subscription Costs for SaaS Platforms

Post-covid inflation has seen many SaaS providers raise prices significantly, and additional price hikes are likely should their hardware costs go up further. Higher costs for essential business tools could strain budgets and lead to businesses losing access to premium software features. Smartt can provide discounts compared to retail pricing for popular software such as Microsoft 365 due to our high volume.

We can also help you conduct audits, explore Canadian alternatives, and perform smooth migrations to mitigate these impacts.

3) Tariffs on Small Package Shipments from Canadian E-Commerce Sites

Cross-border shipping will become more expensive, making Canadian e-commerce businesses less competitive in the U.S. To maintain revenue and profitability, businesses may want to adjust their target markets, adjust digital makreting strategies, and even introduce incentives.

Smartt can assist with marketing realignment, while FlexHours integrates new logistics solutions.

4) Paid Ads Getting More Expensive Due to a Weaker Canadian Dollar

For Canadian companies that compete in the US with paid ads, a weaker Canadian dollar means higher ad costs relatively to US-based firms bidding on the same ads in the US dollar. In the short term, businesses should optimize their paid ads to contain their costs. In the long term, they should shift focus to organic growth strategies like content marketing.

Smartt can assist with planning and carrying out these digital marketing programs through FlexHours.

5) U.S. Consumers Boycotting Canadian Brands

We are already seeing “Buy Canadian” campaigns in Canada. A "Buy American" movement could make U.S. customers hesitant to buy from Canadian brands. Companies should highlight "Made in Canada" messaging to build local brand loyalty and expand into alternative international markets like Europe and Asia.

Smartt can help you with the brand refinement and localization strategies through FlexHours.

6) Increase in State-Sponsored Cyberattacks

Trade disputes often lead to an increase in cyber threats, particularly targeting key industries. Businesses must conduct regular security audits, implement AI-driven threat detection, and ensure multi-layered protection. Smartt offers cybersecurity assessments, centralized firewalls, compliance programs, and security support and employee training.

7) Sudden Service Blocks on Digital Platforms and Tools

TikTok may still get blocked in the US, and Congress is proposing a bill to ban DeepSeek in the US. The Canadian government has banned American news articles on social media platforms like Meta in Canada. It’s hard to predict what the US and Canadian government may restrict access to next. Companies should have backup solutions, adopt decentralized platforms.

Smartt can help you review your software stack and also ensure rapid responses when needed.

8) Cloud and Data Hosting Prices Going Up

AWS, Google Cloud, and Microsoft Azure are U.S.-based, and price increases may follow tariffs or currency fluctuations. Businesses should explore Canadian public and private cloud providers such as Smartt.

Smartt's FlexHours program can assist with seamless migrations and cloud optimization.

Final Thoughts: The Smart, Bold Way Forward

The 25% tariff presents a real challenge, but smart businesses will see this as an opportunity to evolve. Those that streamline IT, optimize marketing, and improve efficiency will emerge stronger, more competitive, and more resilient.

Instead of reacting with fear, Canadian businesses should take bold, strategic action now. By investing in smarter IT solutions, refining digital marketing, and leveraging data, companies can future-proof their operations and stay ahead.

Need help adapting to the new trade landscape? Smartt’s team specializes in IT consulting, managed services, and digital marketing strategies that help businesses optimize costs and drive sustainable growth. Let’s build a strategy that works for your business, even in these uncertain times. Let's talk.