Trump’s Tariffs Will Impact Advertising in Canada: What Should We Do About It?

With US tariffs looming, Canadian businesses are bracing for potential economic turbulence. Historically, moments like this have triggered uncertainty across industries, and advertising is often among the first budgets to be scrutinised. But is cutting marketing spend really the right move?

For Canada’s advertising industry, the answer is clear: resilience, strategic investment, and a focus on brand strength have consistently proven to be the best defences against economic instability. LBB’s April Summers speaks to three agency leaders in Canada to find out what measures are being considered in response, and how adland can help fortify the Canadian market in the face of continued instability. 

It’s easy to assume that tariffs will only affect manufacturers and retailers, but the consequences will in fact be much further reaching. Bob Froese, founder and chief creative officer of Toronto creative agency Bob’s Your Uncle, warns that the advertising sector won’t be immune to the ripple effects of rising costs.

“Trump’s 25% tariffs on Canadian imports won’t just hit manufacturers and retailers – —it’s going to shake up the entire advertising industry,” he says.

“When businesses face higher costs, marketing is often the first thing to get cut. Ad budgets shrink, campaigns get pulled, and brands go into ‘wait-and-see’ mode. But that’s the wrong move. In times of uncertainty, the brands that double down on visibility, storytelling, and loyalty-building come out stronger.”

This isn’t the first time Canada’s economy has faced external pressures. The industry has weathered recessions, global financial crises, and the upheaval of a global pandemic. Bev Hammond, co-founder and chief business officer at Broken Heart Love Affair and Lifelong Crush, believes this is proof that the Canadian advertising industry can withstand volatility.

“Despite this economic uncertainty, and all the noise accompanying it, history has proven that, in fact, the Canadian marketing industry is highly resilient,” she says.

The key lesson from past economic downturns is that brands that continue investing in marketing emerge stronger. Bev cites a report from Harvard Business School, which reinforces this idea: “Companies that master the delicate balance between cutting costs to survive today and investing to grow tomorrow do well after a recession.”

Cameron Stark, co-founder and head of strategy at Hard Work Club, echoes this sentiment. He warns that economic instability – whether driven by tariffs or broader uncertainty – often leads to knee-jerk reactions from brands that ultimately do more harm than good.

“The massive instability that Trump will cause (tariffs or no tariffs) casts my mind toward something we all dread,” he says. “The spectre (or reality) of a recession has typically caused irrational behaviour from brands. So, as a public service, I’d like to remind marketers of the ample evidence that supports continuing to spend on marketing through a recession - and finding other areas to cut costs. Repeated history has shown that brands that continue to spend have a massive opportunity to capture market share from their nervous competitors. Be a recession winner, not a recession loser.”

While tariffs may create short-term challenges, Canada’s advertising sector remains a critical economic driver. Bev highlights this by pointing out the industry’s economic impact, reinforcing the value of continued investment.

“Valuable work from Canada’s agencies generates more than $6 CAD return in GDP for each dollar spent on advertising. That return will look even more attractive should today’s uncertainty end with tariffs tomorrow.”

This return on investment makes a compelling case for maintaining, if not increasing, marketing spend – even in difficult times. And with brands increasingly forced to rethink their positioning, many may find that a ‘Buy Canadian’ mindset isn’t just patriotic – it’s smart business.

According to these three agency leaders, the answer lies in strategy. 

“Will Canadian brands retaliate? Not with tariffs, but with strategy,” says Bob. “Smart brands will shift their messaging to emphasise homegrown pride, local production, and community impact. We’re already seeing a resurgence of the ‘Buy Canadian’ movement, and this is the time for brands to lean in hard.”

And this moment isn’t just about survival. It’s an opportunity for agencies to redefine their role and impact. Bob outlines three tangible ways adland can help steer Canadian brands through potential instability: 

1️. Make ‘Made in Canada’ matter: “This isn’t just a tagline, it’s a competitive advantage. Agencies need to help brands tell the story of their Canadian roots in a way that inspires and connects.”

2️. Be more than a vendor, be a growth partner: “Adland has to help brands rethink their marketing, not just execute campaigns. That means smarter budgets, high-impact creative, and strategies that drive real consumer action.”

3️. Stop playing it safe: “Canadian advertising often looks like a watered-down version of U.S. advertising. Now’s the time to own our voice, push creative boundaries, and make brands stand for something bigger.”

With uncertainty looming, it’s easy to fall into a defensive posture. But history suggests that the Canadian advertising industry, and the brands that lean into smart marketing strategies, are more than capable of navigating economic instability.

“In moments of uncertainty, the Canadian advertising industry and the best brands prevail by rising to the occasion – navigating current market instability whilst keeping one eye on the future,” concludes Bev.

And as Bob succinctly puts it: “Tariffs will hurt. But Canadian brands that invest in creativity and differentiation will win. The real retaliation? Making our brands so strong that no tariff can stop them.”