US-Canada Tariffs Delay: Why North American Manufacturers Must Act Now to Secure Market Share

Recently, one of the most talked about topics in the news is the US-Canada tariffs. First announced in late 2024, then President-elect Donald Trump made it clear that the US would impose trade tariffs on countries he believed weren’t supporting American interests in the right way—including Mexico, China, and even Canada.

After months of threats and Trump’s inauguration, the 25% US tariffs on Canada were set to take effect on Monday, February 3rd. Everyone breathed a sigh of relief when they instead announced a delay on both Canadian and Mexican import tariffs. 

However, this 30-day delay has left manufacturers on both sides of the border in limbo. While temporary relief from the US-Canada tariffs is welcome, it also creates a false sense of security. If these tariffs are imposed in a month, North American manufacturers will feel the effects instantly. If you want to stay competitive, you need to prepare by adopting effective marketing strategies and seizing all available opportunities.

What are these prospects? For Canadian companies, it’s an opportunity to secure U.S. market share before new trade barriers take effect. Meanwhile, US manufacturers have a chance to strengthen their supply chains and expand their customer base before rising import costs make it more challenging.

But, capitalizing on the possibilities requires your business to adopt the right strategy. If you’re a manufacturer looking to protect your business and navigate these uncertain times with confidence, having a solid marketing strategy is essential. 

In this blog, we’ll explore how the US-Canada tariffs may impact you, why cutting marketing is a mistake during tough times, and how Ballistic Arts helps companies turn potentially challenging times into growth opportunities.

What the US-Canada Tariffs Mean for North American Manufacturers

If Trump’s tariffs come back after 30 days, here’s what manufacturers can expect:

Higher Costs for US Businesses Importing from Canada

Many manufacturers operate integrated supply chains between the US and Canada, meaning that import duties directly impact their input costs. 

Nearly half of US imports are components for American companies—a 25% increase in costs could make them less competitive. In turn, this would force companies to raise prices or settle for lower profit margins due to tariffs. In practice, many do both: some costs are passed on to customers (making products less affordable), while some are absorbed by the manufacturer (reducing their profit per unit).

Companies that don’t explore new revenue streams or secure more cost-effective supply chains could struggle to maintain profitability. This is especially true for manufacturing industries operating on narrow margins, such as automotive and machinery.

Reduced Competitiveness for Canadian Manufacturers

A 25% tariff on Canadian exports makes it more expensive for US buyers sourcing from Canadian suppliers. Unless Canadian companies strengthen their market position and demonstrate their value beyond just price, many US customers may look for alternative suppliers.

Currency fluctuations introduce another layer of ambiguity. Tariffs not only raise trade costs but can also lead to currency instability. Trade tensions frequently weaken the currency of the country facing tariffs, and in this instance, the Canadian dollar may experience further depreciation. 

In some cases, this makes Canadian exports more affordable in global markets; however, it also raises the cost of essential imports. Many Canadian manufacturers rely on US-sourced raw materials, equipment, and components, all of which become more expensive when the Canadian dollar weakens. Additionally, fuel costs, machinery, and other operational expenses tied to USD pricing could strain already tight margins, making it harder to compete on price.

Beyond direct cost impacts, tariffs often fuel nationalist sentiment on both sides of the border. 

US businesses may shift toward domestic suppliers to avoid tariff uncertainty or align with “Made in America” initiatives, while Canadian companies may prioritize local sourcing in response to rising costs. 

This change in demand complicates competition for cross-border manufacturers. To remain competitive, companies need to prioritize reliability, innovation, and value beyond just pricing to keep customers even in a challenging market.

More Conservative Spending on Marketing

Historically, economic uncertainty causes companies to reduce costs, and marketing is often the first budget to face cuts. Trade tariffs have repeatedly triggered reductions in marketing spend for manufacturing firms, and there are clear examples showing how significant their effects can be.

• The Great Depression (1930s): The Smoot–Hawley Tariff raised US import duties, prompting global trade retaliation. In response to plummeting corporate revenues, businesses slashed advertising budgets to save costs.
• 2018-2019 US-China Trade War: US manufacturers faced tariffs on exports and rising costs on imported components. As a result, many scaled back their marketing budgets, with GroupM reporting lower ad spend as market share and profit margins shrank.
• 2018 NAFTA Renegotiations (USMCA Agreement): Manufacturers postponed investments due to uncertainty about trade agreements, leading to delays in marketing for trade shows and product launches as businesses were reluctant to allocate resources.

A Bank of Canada analysis found that tariffs directly reduce business profit margins, with many companies absorbing some of the increased costs rather than passing them on to customers. As profits are squeezed, marketing budgets typically shrink as businesses strive to conserve cash.

But this is a critical mistake—cutting marketing when times get tough actually makes things worse. When competitors pull back, the companies that continue investing in lead generation and brand visibility are the ones that capture greater market share. Businesses that remain proactive during instability tend to emerge stronger when the market stabilizes.

How Ballistic Arts Helps Manufacturers Turn Uncertainty into Opportunity

At Ballistic Arts, we specialize in sales-qualified lead (SQL) generation for manufacturing companies. Unlike traditional marketing agencies that focus on brand awareness alone, we create measurable, high-ROI campaigns that directly increase revenue and support your business goals.

Here’s how we help manufacturers like you stay ahead of the tariff uncertainty:

1. Full-Funnel Digital Marketing for Manufacturing

We understand that manufacturing sales cycles are complicated. Because of this complexity, your manufacturing company requires a multi-touch marketing strategy to attract, engage, and convert the right prospects. 

At Ballistic Arts, we provide a holistic, data-driven approach that covers every stage of the sales cycle:

• SEO for manufacturing companies: Rank at the top of key search engines when US and Canadian buyers search for suppliers, ensuring long-term organic visibility and increased inbound leads.
• PPC (Pay-Per-Click) advertising: Dominate search results and generate SQLs faster than competitors.
• Targeted B2B advertising & geofencing: Pinpoint ideal customers with precision targeting based on location, job type, and purchase behaviour.
• Industrial content marketing: Establish yourself as an industry expert with thought leadership content that builds trust and credibility in your sector.

2. Data-Driven Lead Generation with Measurable ROI

Unlike traditional marketing agencies that focus on brand awareness alone, Ballistic Arts is a profit center, not a cost center. Our approach means that we prioritize measurable lead generation and ROI-driven results.

Here are some of the results we measure to make sure your marketing is giving you real ROI:

• Leads generated: We track actual business inquiries, not just website visits or clicks.
• Conversion rates: Optimized landing pages ensure we’re converting prospects into real, paying customers.
• ROI analytics: Our real-time tracking means you know exactly how much revenue each marketing dollar is producing.

3. Resilient Marketing Strategies Built for Uncertain Times

With tariffs potentially returning in 30 days, manufacturers cannot afford to wait and see. Now is the time to double down on your market position before external factors disrupt the industry. 

To do this, we help manufacturers:

• Secure high-value U.S. and Canadian clients before competitors react.
• Optimize messaging to differentiate from price-driven competitors.
• Create a long-term, customized marketing plan that thrives, regardless of tariff decisions.

The Time to Act is NOW—Before the Tariff War Returns

Now you understand that your actions today will impact your business’ growth trajectory as the world navigates these ambiguous times. 

The US-Canada tariffs create a wave of unpredictability, but this also creates opportunity. Manufacturers who take a proactive approach, by strengthening their marketing efforts and securing new business, will come out on top.

If you wait until tariffs return, you’ll already be behind. 

The next 30 days are a golden opportunity to strengthen your lead generation and sales pipeline. Businesses should focus on high-ROI marketing strategies, lead generation, and positioning themselves as the best alternative in the market.

With Ballistic Arts, you get a data-driven marketing partner that understands the challenges manufacturers face. Together, we can create a tailored digital marketing strategy that transforms these challenging times into an opportunity for growth. Connect with us today so we can make sure you’re prepared for any upcoming tariff changes.

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