This year, the United States took a sharp turn on trade policy when they imposed sweeping new tariffs on Canada, Mexico, and China. For Canadian businesses, this included a broad 25% tariff on goods exported to the U.S., along with a 10% levy on energy resources. While the headlines have largely focused on agriculture, manufacturing, and natural resources, the ripple effects of this decision reach much further—including into the digital marketing world.
Digital marketing may not ship physical goods across borders, but it’s far from insulated from global economic shifts. Tariffs change how businesses spend, where they focus, and how they approach growth—and all of that influences marketing. In an industry defined by agility and adaptation, it’s important to understand not just the direct impacts, but everything else that comes with it.
The Connection Between Tariffs and Marketing Budgets
At first glance, it might seem like tariffs on goods have little to do with paid media strategies or digital content calendars. But every economic policy change creates shifts in business behavior.
Increased Costs = Tighter Budgets
When companies face higher costs to export goods, or see their margins shrink due to retaliatory tariffs, they often need to reallocate or reduce spending. Marketing and advertising are typically among the first departments to feel the squeeze—especially if sales forecasts drop.Market Shifts = New Targeting Challenges
Businesses that once focused heavily on U.S. consumers may now pivot to European, domestic, or emerging markets in search of friendlier trade terms. That means entirely new digital targeting strategies, different buyer personas, and fresh campaigns that speak to new audiences—many of which come with added localization and compliance hurdles.Brand Perception and Messaging Sensitivities
In politically charged times, brand tone matters more than ever. Companies involved in cross-border trade may need to revisit how they communicate about origin, pricing, and policy. For digital marketers, this means carefully crafting ad copy, social messaging, and PR campaigns that strike the right tone in complex environments.
Global Changes - Not Just A Canadian Story
While Canada is directly affected by these latest tariffs, the digital marketing industry worldwide has reason to pay attention.
U.S. Brands May Become More Insular
Tariffs often come with a “buy local” sentiment, even if unofficial. U.S. businesses may begin leaning more heavily on American agencies and freelancers—potentially cutting off outsourcing pipelines to global partners. For marketers based in Mexico, the Philippines, India, or even Canada, this could mean losing out on retainer work that was previously cross-border.The Cost of Cross-Border Tools Could Rise
Many agencies rely on software and tools that operate internationally—whether it’s project management platforms, design suites, or marketing automation software. If tariffs start affecting SaaS pricing, or currency volatility creates less favorable exchange rates, marketing operations could become more expensive without delivering added value.Impact on E-Commerce and DTC Brands
Direct-to-consumer (DTC) brands with global fulfillment models—many of which invest heavily in digital advertising—may need to restructure their logistics or product offerings. This could slow down growth initiatives, reduce ad spend, or shift performance expectations in key regions.
Short-Term vs Long-Term Outlooks
The short-term impact of tariffs is usually confusion and volatility. Budgets get paused. Campaigns are delayed. Leadership teams regroup. But in the long term, it’s often a forcing function for innovation.
Some businesses will pull back—but others will pivot. Digital marketing strategies will evolve to match new realities. Brands will look for efficiencies, shift spend from traditional to performance channels, or focus more on automation and AI to offset labor costs.
Smart agencies and marketing teams won’t just survive—they’ll reshape how they deliver value.
According to the IAB, 94% of 100 U.S. advertisers surveyed in February said they were concerned about the impact of tariffs on this year’s spending. Sixty percent anticipated budget cuts between 6% and 10% while nearly a quarter expected deeper reductions of up to 20%.
How Canadian Marketers Can Adapt and Stay Ahead
For Canadian digital marketers, these new U.S. tariffs pose both a challenge and an opportunity. Here’s how to stay flexible and future-focused:
Double Down on Domestic Brands
Canadian businesses may refocus inward, investing in local partnerships and suppliers to reduce exposure to U.S. costs. That’s a growth opportunity for Canadian marketers to be part of the re-localization wave.Get Creative With Cross-Border Messaging
Canadian companies still targeting U.S. customers will need sharper positioning. Marketers should lean into messaging that emphasizes trust, quality, and differentiated value—especially if pricing edges upward.Explore New International Markets
While U.S. exports might be temporarily more complicated, markets in Europe, Asia, and even Latin America remain open. Marketers can help brands explore new segments by developing international campaigns that speak to a broader customer base.Push for Attribution and Efficiency
With budget scrutiny likely, marketers need to demonstrate clear ROI. That means leaning on first-party data, stronger attribution models, and performance-driven strategy that speaks the language of the CFO.Stay Agile, Stay Informed
Policy can shift quickly. What’s true in Q1 may not hold in Q4. Marketers should stay up to date on trade policy changes, talk with clients about contingency planning, and ensure campaigns can pivot without friction.
A Final Word: From Disruption Comes Opportunity
The global economy is anything but stable in 2025. Trade tensions, AI disruption, regulatory shifts—everything is in motion. But that’s where digital marketing thrives: in the in-between spaces, where agility and creativity can unlock growth.
Tariffs may complicate the landscape, but they also force businesses to get clear on what works, what resonates, and what really drives value. For digital marketers—especially those in Canada—it’s not about ducking the challenge. It’s about bobbing, weaving, and coming out stronger.
Want to talk through what this means for your business or marketing strategy?
Parilon Digital is here to help you stay adaptive, data-driven, and dialed in. Contact us today!
