The recent announcement of a potential 25% tariff on Canadian imports by the United States has sparked serious concern across Canadian households, businesses, and government offices. For industries that provide the food we eat, the products we use daily, and the healthcare essentials we rely on, this looming threat raises questions about costs, availability, and stability. The impact could reach far beyond boardrooms and trade statistics—it could affect the everyday lives of Canadians. But as the dust settles on Trump round #1, it’s important to stay focused, stay informed, and take action to protect our economy and well-being.

The idea of tariffs being used as leverage is not new. President-elect Donald Trump’s announcement reflects a tactic straight out of his negotiating playbook, as highlighted in The Art of the Deal: “Leverage: don’t make deals without it.” During his first term, Trump used similar threats to pressure Mexico and Canada into renegotiating NAFTA. While these threats were effective in getting both countries to the table, the final outcomes were not always significantly more favorable. Now, Trump is again wielding tariffs as a "negotiating tool," tying his latest threat to non-trade issues such as immigration and drug control.

Experts, including political economists and financial analysts, suggest that the sweeping tariff threat is as much about gaining an upper hand as it is about actual implementation. Nevertheless, the uncertainty created by this approach reverberates through global markets and vulnerable sectors like food, health, and consumer goods. For Canadians, the consequences of even the threat of tariffs are real. Groceries, household essentials, and healthcare products could see price hikes. Canadian exporters face potential disruptions, and American manufacturers that rely on Canadian inputs may find themselves grappling with higher costs, impacting competitiveness on both sides of the border.

While Canada must continue to work diplomatically to protect this vital trade relationship, we also need to be realistic. Trade negotiations are unpredictable, and we can’t rely solely on the hope of a favorable outcome. To shield ourselves from potential fallout, governments at all levels need to act now. Streamlining unnecessary regulatory hurdles will encourage investment and help industries like food, health, and consumer products adapt to challenges and seize new opportunities. Modernizing Canada’s tax environment and supporting technological innovation will further strengthen the resilience of these critical sectors.

At the same time, it is crucial to address domestic barriers to trade. Outdated rules often make it harder to move goods and services between provinces than to trade with other countries. Resolving these issues will not only make our economy more efficient but also bolster Canada’s competitiveness in the face of external pressures.

To ensure our industry’s concerns are heard, Food, Health & Consumer Products of Canada (FHCP) is working closely with the Consumer Brands Association (CBA) in the United States, as well as government representatives, trade officials, and a broad spectrum of industry associations. This collaborative approach aims to advocate for policies that prioritize stability, affordability, and economic growth on both sides of the border.

This is an unsettling time, but it’s also an opportunity to make meaningful changes. For Canadians worried about the potential impact on prices and availability, the message is clear: preparation today means protection tomorrow. Leaders must act decisively, balancing diplomacy with domestic reforms that enhance economic stability and improve affordability for families. Together, we can protect what matters most: our families, our industries, and our future.

This op-ed was originally published on LinkedIn.