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Grants and tariff relief

Who pays a tariff, the five ways it can hurt a small business, and the help that’s out there. In plain words.

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3 minute readUpdated October 13, 2026By the NorthAxis Capital team

The short answer

  • A tariff is a tax on goods that cross a border. The business bringing the goods in pays it.
  • U.S. tariffs make Canadian goods cost more in the U.S., so some buyers order less.
  • Canada’s counter-tariffs can make U.S. parts and supplies cost more here.
  • You can feel it even if you never export, through your customers and suppliers.
  • There is help, including grants of up to $3 million you don’t pay back.

What is a tariff?

A tariff is a tax on goods that come in from another country. Governments use tariffs to make foreign goods cost more.

Who pays a tariff?

The business that brings the goods in pays the tariff to its own government.

  • When a U.S. company buys Canadian steel, the U.S. company pays the U.S. tariff.
  • When a Canadian company buys U.S. goods that Canada taxes, the Canadian company pays.

But the cost rarely stays put. It gets passed along in prices, smaller orders and tighter deals. That’s how it reaches your business.

5 ways tariffs hurt a small business

  1. Fewer orders. Your products cost more for U.S. buyers, so some buy less or buy elsewhere.
  2. Higher costs. Parts and supplies from the U.S. can cost more because of Canada’s counter-tariffs.
  3. Tight cash. Sales slow down while bills stay the same. How to protect your cash.
  4. Delays. Customers wait to see what happens before they order.
  5. Ripple effects. If you supply, ship for or serve a business that exports, you feel it when they slow down.
You don’t have to export to be hurtA trucking company, a machine shop or an accounting firm can lose work when their customers get hit. This kind of harm can count when you apply for tariff help.

Who is hit hardest?

Some sectors face special U.S. tariffs. They include:

Their suppliers, shippers and service providers often feel it too. See all industries.

What about CUSMA?

CUSMA is the trade deal between Canada, the U.S. and Mexico. Many goods that follow its rules have crossed the border without U.S. tariffs. But some sectors, like steel, aluminum, autos and lumber, face special U.S. tariffs anyway.

The rules have changed often. Ask a customs broker how your own products are treated today.

What can you do?

  1. Keep proof of lost orders and higher costs. Here’s what to save.
  2. Plan your cash 13 weeks ahead.
  3. Talk to customers and suppliers early about prices and terms.
  4. Use the help that exists: grants up to $3 million, low-cost loans and Work-Sharing. See every program.
Find out what you can getWe have helped 40 businesses with tariff relief. Check the 7 questions or ask us directly.

FAQ

Quick questions, quick answers.

Worker sewing at a textile factoryStill unsure? Call 437-525-4210
Who pays the tariff, the buyer or the seller?

The business that brings the goods into the country pays it. But the cost usually spreads to others through prices and smaller orders.

Can tariffs hurt my business if I don’t export?

Yes. If your customers or suppliers are hit, you can feel it through fewer orders, slower payments or higher costs.

What help is there for businesses hurt by tariffs?

Grants of up to $3 million, BDC loans with 0% interest for the first year, Work-Sharing, and some provincial programs. See them all.

Are tariffs on Canada going away?

No one knows for sure. The rules have changed many times. Plan for a few different outcomes and keep your proof of harm.

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