U.S. Tariffs Could Trigger Job Losses and Business Bankruptcies in Manitoba
When the economy shifts, businesses feel it. Currently, U.S. tariffs have made headlines and are set to directly impact the Manitoba economy and entrepreneurs. At the same time, China has imposed tariffs on Canadian products like canola, peas, pork, and seafood.1 Let’s unpack how these trade policy changes could affect your business or livelihood—and share practical ways to stay ahead in uncertain times.
How Tariffs Can Impact Manitoba
A trade war comes with real economic consequences. In Manitoba, 1,756 businesses and 63,179 jobs rely on trade with the United States. Nearly 72% of the province’s exports – valued at $18 billion – head south of the border. U.S. tariffs will make those exports more expensive for American buyers, potentially reducing demand.2 Over time, that drop could lead to business cutbacks and job losses here at home.
Retaliatory tariffs may be good politics, but they will make the goods we import more costly. Buyers will pay higher prices if companies need to pay more for input costs, once again reducing demands. Companies may need to borrow more to keep their operations open.
We are already seeing the fallout: 62% of Manitoba businesses report they’ve either experienced or expect to experience negative effects from U.S. tariffs. In addition, 72% cite financial strain – through higher costs or reduced revenue – as their top concern. While uncertainty slows response efforts, many business leaders have called on government officials for rapid dispute resolution.3
How tariffs can impact you
Tariffs often trigger price increases and inflationary effects, which can lead to some unintended consequences for you as a consumer — from reduced spending and increased borrowing to business Bankruptcies and job cuts.
For example, manufacturing companies may reduce production to respond to lower consumer demand or higher costs. Layoffs may be necessary, which can further squeeze demand and ramp up the financial pressure.
Tariffs also create economic uncertainty. Some are applied, others delayed, and new ones may be introduced without warning. That makes it hard for you to plan ahead and invest in stable financial growth.
Simple Steps to Prepare for Tariffs
With a new Canadian trading and political reality, what can Manitoba residents do? Here are some basic actions you can take today:
Get your finances in order
Start by taking an honest look at your financial situation. Track where your money goes and identify areas where you can adjust. With any errors fixed, you’ll be better prepared for the challenges ahead. If you have too much debt, help is available, and professional support can get you back on track.
Build a budget
Use a spreadsheet or online budgeting tool to build a budget. First, determine your household income; you may have overestimated or underestimated it. Second, record your expenses, including household debt.
If your budget shows that your expenses exceed your income, you may need to cut costs or find ways to bring in more money. Create a little extra room in the budget for possible price hikes due to tariffs.
Plan ahead for economic challenges
Layoffs, reduced hours, or wage pressure are real possibilities. Stock up your emergency fund in case you experience a setback. A common rule of thumb is to have at least three to six months of living expenses in your emergency fund.
You can also check out the available government benefits to help you through difficult times. The government offers various types of support for those with financial insecurity (circumstance dependant).
Debt and the Cost of Living
Manitoba is one of the lowest cost of living provinces in Canada, but its inflation rate was higher than any other province in January 2025.4. As a result, many Manitobans have borrowed to cover their expenses.
Unfortunately, these types of debt carry high interest rates and quickly become uncontrollable. Payments reduce the amount of money you have for living expenses, causing you to borrow more. It can be a dangerous way to manage tariffs and price hikes.
Dealing with debt
If you need help with your debt, it’s best to see a Licensed Insolvency Trustee (LIT). You’re not alone in this; professionals are ready to assist you. The federal government regulates LITs, and they can provide several debt services to individuals and businesses:
- Credit counselling: Credit counselling with a debt expert will help you understand how debt works and the best way to manage your situation. For some, this is all they need to turn their finances around. Be careful, however. There are some questionable practices in the credit counselling industry. The industry is unlicensed, and has no standards for the qualifications of counsellors.
- Consumer Proposal: A Consumer Proposal can reduce your unsecured debt if the balance owing is more than you can manage. With a Consumer Proposal, you work with a Licensed Insolvency Trustee to negotiate an agreement with your creditors which reduces the amount of debt you need to repay. Once the creditors have agreed to the percentage of the debt you will repay, you make payments over a period of time (up to five years) to complete the Proposal. Once completed, your creditors write off the remaining portion of the debt. Filing a Consumer Proposal lets you settle your debts and stops all collection activity. You also keep your assets. Consumer Proposals are available for businesses as well but are called Division 1 Proposals.
- Bankruptcy: Filing for personal Bankruptcy helps if you are looking for a quicker solution to your debt problems. Like a Proposal, monthly payments are required. In the case of a Bankruptcy, however, those payments are based on your ability to pay, including the value of any non-exempt assets, rather than being based on the amount you owe. Your creditors will write off your remaining unsecured debt. All collection activity stops when you file for Bankruptcy. Each province allows you to keep most assets when you file. Remember, no matter how challenging your financial situation may seem, there are always ways to overcome it.
Where to Get Help
If you or your business has too much debt, don’t let the impact of U.S. tariffs make it worse. LC Taylor has offered debt relief in Manitoba and Northwestern Ontario for over 30 years. Our solutions team will work with you to find the right solution for your debt. Contact us online or at 204-925-6400 for a free consultation.
Leigh C. Taylor, LIT
