How Trump's Tax Plan Could Impact Bricks-and-Clicks Businesses in the U.S. and Canada (And What You Can Do About It)

As a brick-and-click business owner, you’ve seen it all—economic ups and downs, new trends, and changes in government policies. The latest buzz? U.S. President Donald Trump’s proposed tax and trade policies. While these changes are mostly aimed at American businesses, they could also affect Canadian businesses that sell to the U.S. or rely on American suppliers.

But don’t worry—this article will break it all down in a simple way. We’ll go over what’s changing, what it means for your business, and, most importantly, what you can do to stay ahead. Let’s dive in!

Trump’s Tax and Trade Plan (In Simple Terms)

1. Tariffs on Imports
   
   Trump wants to place a 10% to 20% tax (tariff) on all goods coming into the U.S. Some countries, like China, could see even higher tariffs. If you run a U.S. business that relies on imported goods, prices might go up. If you’re in Canada and sell to American customers, your products could become more expensive for them.

2. No Federal Taxes on Tips and Overtime Pay
   
   If you’re in the U.S., this could mean more take-home pay for employees in certain industries. It might also lead to shifts in wages and hiring trends, which could affect how you manage your team.

3. Possible Canadian Tariffs in Response
   
   In the past, Canada has fought back against U.S. tariffs by adding their own. If that happens again, Canadian businesses that import from the U.S. might see prices rise, and U.S. businesses that depend on Canadian suppliers could feel the impact too.

4. Changes to Business Taxes
   
   Trump is pushing to extend corporate tax cuts, which could benefit small and medium-sized U.S. businesses. But if you also deal with increased costs from tariffs, those savings might not go as far as you’d like.

How This Could Affect Your Business

1. Prices on Imported Goods Might Go Up
   
   Whether you’re in the U.S. or Canada, if you rely on goods from other countries, your costs could increase. It’s a good time to check your suppliers and see if there are better options closer to home.

2. Selling to U.S. Customers Could Get Trickier
   
   If you’re a Canadian business that sells to American buyers, tariffs could make your products more expensive in the U.S. This might lead customers to look for cheaper local options.

3. Supply Chains Might Get Messy
   
   If tariffs cause delays or extra costs, it could throw off your inventory planning. Having backup suppliers or extra stock on hand could help.

4. Customers Might Spend Differently
   
   Big economic changes can make people cautious about spending. Whether you're in the U.S. or Canada, it’s smart to keep an eye on shopping trends and adjust your strategy accordingly.

What You Can Do to Stay Ahead

1. Find New Suppliers

   • Look for suppliers within your own country or in places that won’t be hit with big tariffs.

   • Negotiate better deals with your current suppliers to keep costs down.

2. Adjust Your Pricing (Smartly)

   • If costs go up, consider adjusting your prices without scaring off customers.

   • Bundle products or offer added perks to show extra value.

3. Expand Beyond the U.S. and Canada

   • If you’re in the U.S., consider selling to markets outside North America to reduce risks.

   • Canadian businesses should look for opportunities in Europe or emerging markets.

   • A strong online store can help you reach customers anywhere in the world.

4. Streamline Your Operations

   • Automate tasks where you can to save money and improve efficiency.

   • Use AI tools to manage inventory and predict customer demand.

5. Stay Informed on Government Support

   • Keep up with tax breaks, grants, or subsidies in the U.S. and Canada that can help your business.

   • Join trade associations or business groups to stay ahead of industry changes.

6. Make Customer Service a Priority

   • If you need to raise prices, explain why and highlight the value you provide.

   • Keep customers happy with great service, exclusive offers, and flexible payment options.

Final Thoughts: Stay Positive and Adaptable

Change is a part of business—always has been, always will be. The best business owners know how to roll with the punches, adjust their strategies, and come out even stronger.

Instead of seeing Trump’s tax and trade plan as a challenge, think of it as a chance to fine-tune your business. By taking smart steps now, you’ll not only protect yourself from potential challenges but also set yourself up for future success.

Now’s the time to look at your supply chains, explore new markets, and fine-tune your operations. Stay flexible, stay informed, and most importantly—keep moving forward!