1 What is the most significant change to your region/jurisdiction’s tax legislation or regulations in the past 12 months?
Over the past 12 months, the most significant change to Canada’s trade-related tax and tariff landscape has been the introduction and/or escalation of tariffs between Canada and the US (among other countries). The US government has imposed tariff measures on key Canadian exports – including non-eligible goods under the Canada–United States–Mexico Agreement (CUSMA) or energy and potash (at reduced rates), steel, aluminum, and vehicles – citing security and trade concerns.
In response, Canada implemented equivalent tariffs on a wide range of US goods, including automotive products and consumer items, disrupting long-standing integrated supply chains, especially in the automotive sector. These measures have been continuously and rapidly evolving over the course of the past year, and a notable recent development is the repeal of certain Canadian countermeasures to support ongoing negotiations between the US and Canada.
2 What has been the most significant impact of that change?
The most significant impact of the tariff impositions and ongoing trade tensions has been heightened economic uncertainty that has affected both the Canadian economy as a whole and individual businesses. On a macroeconomic level, these measures have contributed to slower economic growth, job losses, and increased volatility in key sectors such as manufacturing and natural resources. Disruptions to integrated supply chains, most notably in the automotive industry, have led to higher costs and delays, eroding competitiveness and dampening investment confidence.
For businesses, the constantly evolving tariff landscape has created significant operational challenges. Organisations face difficulty in long-term planning due to the unpredictability of trade policies, forcing many to reassess supply chains, inventory strategies, and pricing models on short notice. This environment of uncertainty has led to increased compliance costs and risk exposure, particularly for organisations that are heavily reliant on cross-border trade. As a result, many organisations are accelerating efforts to diversify their markets and suppliers to better manage ongoing risks.
3 How do you anticipate that change impacting your work and the market moving forwards?
Moving forward, the evolving tariff environment will continue to shape both my team’s work and the broader market significantly. For Deloitte’s global trade practitioners, this means an increased focus on helping clients navigate the complexity and volatility of trade regulations, including adapting to real-time tariff changes, addressing compliance challenges, managing audits, and developing risk management strategies. There will likely be a greater demand for proactive advisory services to help businesses restructure supply chains, optimise cross-border operations, and explore diversification of markets to reduce exposure to geopolitical risks.
In the broader market, sustained uncertainty will likely drive businesses to become more agile and resilient, investing in technologies and strategies that enhance supply chain transparency and flexibility. Governments may also respond with further regulatory adjustments and pursue trade negotiations to stabilise the environment. Ultimately, our work will increasingly focus on providing integrated tax, trade, and strategic advisory services that blend regulatory knowledge with strategic planning to help clients adapt and thrive amid ongoing shifts in the global trade landscape.
4 How has this changed the way you offer tax advice?
Recent tariff developments have resulted in greater emphasis on agility and real-time responsiveness. Instead of relying solely on traditional tax and trade advisory services, our approach now integrates ongoing monitoring of tariff changes and trade policy shifts to help clients anticipate and respond quickly to evolving risks.
Additionally, we work closely with clients to develop flexible tax strategies that account for potential scenarios in an unpredictable trade environment, including cross-border restructuring and diversification of operations. The heightened uncertainty has reinforced the need for a more collaborative, multidisciplinary approach – combining tax, trade, strategic, and operational insights – to deliver practical, forward-looking solutions that help clients remain resilient amid constant change.
5 What potential other legislative/regulatory changes are on the horizon that you think will have a big impact on your region/jurisdiction?
In addition to the current tariff negotiations between Canada, the US, and other trading partners, one major upcoming regulatory development is the scheduled comprehensive review of CUSMA in 2026. This review represents a key opportunity to address unresolved issues and potentially recalibrate provisions related to trade facilitation, dispute resolution, digital trade, and environmental standards – each of which could materially impact cross-border commerce and tax compliance.
Furthermore, ongoing efforts to modernise customs regulations, enhance anti-dumping and countervailing duty frameworks, and implement more rigorous enforcement of trade remedy measures are expected to intensify. These changes will require businesses to remain vigilant and adaptable, placing increased importance on compliance and strategic planning to navigate a more complex regulatory environment. My team’s advisory work will continue to focus on helping clients anticipate these shifts and align their operations accordingly.
6 What are the potential outcomes that might occur if those changes are implemented?
With the upcoming 2026 CUSMA review and ongoing negotiations and regulatory developments, the exact outcomes remain uncertain. However, several potential scenarios could arise. Enhanced trade facilitation and clearer dispute resolution processes may improve predictability and lower compliance costs for businesses engaged in cross-border trade. On the other hand, there is also the possibility of stricter enforcement of trade remedies and the introduction of new regulatory requirements, which may increase complexity and operational costs, especially in sectors that rely heavily on international supply chains.
Depending on the nature of any changes – such as adjustments to tariff measures, digital trade provisions, or environmental standards – businesses may need to accelerate efforts to diversify supply chains, invest in compliance capabilities, and develop more adaptive tax and trade strategies. This evolving landscape will require organisations and advisers to remain agile and proactive to effectively manage emerging risks and capitalise on new opportunities.
7 Do you think that change will have a positive effect on both your practice and the wider regional/jurisdictional market?
Yes, I believe these changes have the potential to bring positive impacts to both my practice and the broader regional market, despite some challenges along the way. For my practice, the evolving trade and regulatory environment is driving greater demand for specialised advisory services, particularly in areas such as tariff management, tax and trade compliance, and strategic supply chain restructuring. This creates opportunities to deepen client relationships and deliver more integrated, value-added solutions.
For the wider market, while initial adjustments may cause disruption, the establishment of clearer and more predictable trade rules, if achieved, could enhance competitiveness and stimulate long-term investment. Moreover, the push toward supply chain diversification and modernisation is likely to spur innovation and increase resilience across industries. Ultimately, successfully navigating this dynamic environment will require collaboration between businesses, advisers, and policymakers, positioning the region for sustainable growth.
8 Are there any regulatory/legislative changes you believe should be implemented in your region/jurisdiction?
Canada has taken important steps through agreements such as CUSMA and the modernisation of customs processes under the Canada Border Services Agency’s Assessment and Revenue Management (CARM) system. However, additional legislative and regulatory enhancements are needed to increase certainty and resilience for Canadian businesses. Specifically, further refinement of customs processes through modernisation and digitisation – along with greater transparency and consistency in the application of tariffs, rules of origin, and trade remedies – would provide businesses with clearer guidance, enabling better planning and helping manage the risk of unexpected costs and other disruptions.
Moreover, it is essential to continuously review and refine existing incentive programmes that promote supply chain diversification, strengthen domestic capabilities, and expand access to export markets. These efforts will enable Canadian businesses to reduce reliance on any single market and better navigate global trade uncertainties. Ultimately, fostering a regulatory environment grounded in predictability, clarity, and adaptability will be critical to supporting the long-term competitiveness and resilience of the Canadian economy.
9 How do you believe those changes would help improve the tax landscape in your market?
These changes should significantly enhance the tax landscape by fostering greater predictability and stability – key factors for effective tax planning and compliance. Improved transparency regarding tariffs, rules of origin, and trade remedies would help reduce ambiguity and disputes, enabling businesses to better anticipate their tax and duty obligations. This increased clarity would help reduce unexpected costs and administrative burdens, leading to greater overall efficiency.
Moreover, encouraging supply chain diversification and strengthening domestic production through ongoing incentive reviews would help broaden the tax base and reduce its exposure to external shocks. A more resilient business environment supports sustainable revenue generation and enables tax policies to be more effectively aligned with Canada’s economic and trade objectives.
10 What sort of issues surrounding the implementation of AI have you seen, and how will AI implementation likely affect your work?
In the context of global trade and tax advisory, the implementation of AI has brought both significant opportunities and notable challenges. A primary concern is data quality and integration, as AI systems rely heavily on accurate and comprehensive data, yet trade and tax information often come from disparate sources with varying standards. Maintaining data consistency and regulatory compliance is a major hurdle. Additionally, concerns exist regarding the transparency and explainability of AI-driven decisions, particularly when algorithms influence compliance assessments or risk profiling.
Looking ahead, AI is likely to transform how we analyse complex trade data, identify risks, and streamline compliance processes – enabling more proactive and precise advisory services. For my practice, this means leveraging AI tools to deliver faster, data-driven insights while also advising clients on the ethical and regulatory considerations associated with AI adoption. Ultimately, while AI offers the potential to better navigate an increasingly complex global trade environment, it requires careful implementation to balance innovation with trust and accountability.
11 How would you describe the tax authorities’ approach in your region/jurisdiction?
Canadian tax authorities employ a collaborative yet rigorous approach, striking a balance between enforcing compliance and supporting voluntary adherence to tax laws. They have become increasingly focused on transparency, data sharing, and leveraging technology to identify risks and improve enforcement – particularly in areas such as cross-border trade and transfer pricing. At the same time, authorities engage with taxpayers and advisers through consultations and the provision of guidance to clarify complex rules and encourage compliance.
This approach aligns with a broader trend toward risk-based auditing and targeted interventions, aiming to allocate resources efficiently and lessen unnecessary burdens on compliant businesses. Overall, the Canadian tax authorities demonstrate a commitment to maintaining a fair and predictable tax environment, though the growing complexity of the global trade landscape continues to present challenges that require ongoing dialogue and adaptability.
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