The global trade landscape is shifting once again, with new tariffs introduced between the United States, Canada, and Mexico. These changes are impacting businesses, supply chains, and consumer prices across North America. Companies relying on imports for their promotional products and branded merchandise are now facing increased costs, making it essential to explore alternative solutions.
At CI Promotions, we recognize the challenges that tariffs bring and are committed to providing businesses with high-quality Canadian-made products to help mitigate these impacts. In this blog, we’ll break down the most recent tariff updates, their implications, and how Canadian-made promotional products can be a smart alternative in today’s economic climate.
The Latest Tariff Developments in the U.S., Canada, and Mexico

On February 1, 2025, the United States government announced a new set of tariffs under the International Emergency Economic Powers Act, which officially went into effect on February 4, 2025. The primary reason cited was to curb illegal immigration and drug trafficking, though the economic consequences of these tariffs are expected to be far-reaching. The key changes include:
A 25% tariff on all imports from Canada and Mexico
A 10% tariff on Canadian energy products
A 10% tariff on all imports from China
These tariffs have led to swift responses from Canada and Mexico, both of whom have announced retaliatory measures targeting U.S. exports. (Source: White & Case)
Canada and Mexico’s Retaliatory Tariffs
As a response to these new tariffs, Canada has imposed a 25% tariff on over $105 billion worth of U.S. goods, with a focus on products from key political regions in the United States. Mexico is also considering similar retaliatory measures, adding further uncertainty to the North American trade landscape. (Source: Wall Street Journal)
The combined effects of these tariffs will increase costs for businesses, reduce trade efficiency, and potentially lead to supply chain disruptions in multiple industries, including manufacturing, retail, and marketing.
The Economic Impact of the New Tariffs
Tariffs are essentially taxes on imports, and their direct and indirect effects can be widespread. Here are some of the major consequences businesses and consumers are expected to face:

1. Higher Prices for Everyday Goods
When tariffs increase the cost of imported goods, businesses must either absorb the costs or pass them on to consumers. In the case of promotional products, companies sourcing items from the U.S. or Mexico could see a significant increase in production costs, making once-affordable branding solutions more expensive. (Source: New York Post)
Higher prices won’t just impact businesses directly involved in trade. The ripple effect will extend to retail stores, restaurants, and service industries that rely on affordable imports to keep their operations running smoothly. Customers can expect price hikes on basic household goods, electronics, and even food items that are sourced across borders.
2. Supply Chain Disruptions
Many North American businesses rely on cross-border supply chains for efficiency and cost savings. With higher tariffs in place, companies will have to reconsider their sourcing strategies, potentially leading to delays and increased logistical challenges.
Disruptions in supply chains can slow down business operations, causing production bottlenecks and shortages of essential goods. This means companies that rely on just-in-time inventory systems may struggle to keep products in stock, leading to potential losses in revenue and dissatisfied customers.

3. Inflationary Pressure
Economists have warned that tariffs may contribute to inflation, making it more expensive to do business in the U.S. and Canada. This could lead to a delay in interest rate cuts by the U.S. Federal Reserve as policymakers work to control rising prices. (Source: The Times)
Higher inflation affects consumers’ purchasing power, leading to reduced spending across multiple industries. As costs rise, businesses may need to reevaluate their pricing models, marketing budgets, and overall financial strategies to stay competitive in a rapidly changing economic environment.
4. Uncertainty in Business Planning
Trade instability makes long-term planning difficult for businesses, particularly for industries that depend on consistent pricing models. Promotional product companies that rely on imported materials will need to explore new strategies to remain competitive.
The unpredictability of tariff policies makes it challenging for businesses to forecast costs accurately. Companies must remain agile, continuously adapting their strategies to mitigate financial risks. Investing in local production may offer a more reliable alternative in an era of trade volatility.

5. Potential Job Losses in Affected Industries
As costs rise and supply chains become less efficient, some businesses may be forced to cut jobs to balance expenses. Industries such as manufacturing, retail, and logistics are particularly vulnerable to trade disruptions. In the worst-case scenario, prolonged tariff wars could lead to factory closures and widespread layoffs, further straining economic stability.
How CI Promotions Is Offering Solutions
With tariffs driving up costs for imported promotional products, businesses must find alternative ways to source high-quality branding materials without breaking the bank. CI Promotions is committed to offering Canadian-made products that help our clients avoid excessive import taxes while still maintaining premium quality.

The Benefits of Choosing Canadian-Made Promotional Products
Cost Stability – Since Canadian-made products are not subject to the new U.S. tariffs, businesses can enjoy predictable pricing without unexpected cost increases.
Support for the Local Economy – Choosing domestically sourced promotional items helps sustain Canadian manufacturers and suppliers, strengthening the national economy.
Eco-Friendly and Sustainable Options – Many of our Canadian-made promotional products prioritize sustainability, reducing the carbon footprint associated with long-distance shipping.
Faster Lead Times – With local production, businesses can receive their promotional products more quickly, avoiding delays caused by international supply chain disruptions.
Examples of High-Quality Canadian-Made Promotional Products
CI Promotions offers a variety of tariff-free, Canadian-made promotional items, including:
Custom Apparel – Branded t-shirts, hoodies, and outerwear made in Canada.
Eco-Friendly Products – Reusable tote bags, stainless steel water bottles, and sustainable notebooks.
Tech Accessories – Locally produced phone stands, wireless chargers, and USB drives.
Workplace Essentials – Custom notebooks, pens, and desk organizers for corporate branding.
These products allow businesses to maintain high branding standards while avoiding unnecessary tariff costs.
Navigating the New Trade Landscape with CI Promotions
The recent tariff changes between the U.S., Canada, and Mexico present new challenges for businesses that rely on imported promotional products. With rising costs and supply chain uncertainties, companies must adapt by sourcing smarter, more sustainable, and cost-effective solutions.

At CI Promotions, we’re here to help. Our Canadian-made promotional products offer businesses a way to maintain high-quality branding while avoiding the financial burden of increased tariffs. By choosing locally sourced products, you can support the economy, reduce environmental impact, and keep your marketing efforts strong despite global trade uncertainties.
Looking for high-quality, tariff-free promotional products? Contact CI Promotions today at (905)-669-4478 or info@cipromotions.com and explore our wide range of Canadian-made options!
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