The Retail Council of Canada (RCC) says it is actively preparing for a range of potential trade challenges as US President Donald Trump announced new tariffs on Canadian imports, set to take effect on March 4, 2025. The proposed tariffs include a broad 25% levy on all goods, with an additional 25% tariff on steel and aluminum scheduled to follow on March 12. These measures could prompt Canada to implement countermeasures, further escalating trade tensions between the two nations.
RCC’s Strategic Response
With uncertainty looming over Canada’s trade landscape, RCC said in a statement that it is working closely with government officials and industry stakeholders to mitigate the impact on Canadian retailers. The organization is focused on ensuring that businesses remain informed while advocating for solutions that minimize disruption.
Engaging with Government Officials
RCC is in direct communication with senior officials across the Canadian government, advocating for a coordinated and strategic response to the proposed tariffs. Ensuring a swift and unified approach is crucial in mitigating potential economic fallout.
Media and Industry Outreach
As part of its advocacy efforts, RCC is actively engaging with the media to keep the public and businesses informed about potential trade implications. The organization is also participating in key trade-focused groups, including the Canada-US Trade Council and the Forum on Canada-US Issues, where industry leaders and policymakers discuss possible countermeasures.
Industry Discussions with US Counterparts
Recently, RCC facilitated a meeting with David French, Executive Vice President of Government Relations at the National Retail Federation (NRF). During his visit, French met with RCC members to discuss the tariff threats and strategize on mitigating their impact on North American retailers.
Delegation to Washington, DC
In an effort to prevent the escalation of trade tensions, RCC will be part of a delegation of Canada-US supply chain representatives traveling to Washington, DC next week. The delegation will meet with both Canadian and American government officials to discuss trade concerns and advocate for a resolution that supports cross-border retail.
Meeting with Bank of Canada Governor
On March 17, RCC is scheduled to meet with Tiff Macklem, Governor of the Bank of Canada. The discussions will focus on the Canadian dollar’s fluctuation and its effect on purchasing power, as well as broader economic trends that could influence retail pricing and supply chains.
The Impact of Tariffs on Canadian Retailers
The proposed tariffs could significantly affect Canadian retailers, particularly those importing goods from the US. The 25% tariff on all goods could drive up costs for businesses and consumers alike, while the additional steel and aluminum tariffs may lead to increased prices on everything from appliances to construction materials.
Retailers operating in sectors that rely heavily on US imports—such as apparel, electronics, and automotive parts—could see the most immediate impact. In response, some businesses may seek alternative sourcing strategies, including increasing imports from other international suppliers.
Canada’s Potential Counter-Tariffs
Should the US move forward with the proposed tariffs, Canada is expected to respond with countermeasures. While the details of potential retaliatory tariffs have yet to be finalized, previous trade disputes have seen Canada impose levies on a range of US goods, including steel, aluminum, food products, and consumer goods.
RCC says it is closely monitoring the situation and is working alongside government and industry leaders to mitigate any negative consequences for Canadian retailers.
What’s Next?
At this time, the announced tariffs remain a looming threat — Donald Trump said Monday that tariffs were going ahead. The Canadian government, with RCC’s support, continues to explore avenues to prevent their implementation. In the coming weeks, stakeholders will remain engaged in diplomatic efforts, industry discussions, and policy advocacy to ensure that Canadian trade interests are protected.
RCC says it will provide updates as the situation unfolds, ensuring retailers remain informed and prepared for any trade policy developments.
