Report Highlights Economic Anxiety Amid Potential Canada-U.S. Tariff Negotiations
Toronto, ON – April 2, 2025
A new survey conducted by Meridian Credit Union highlights the growing concern among Canadian businesses and individuals regarding the potential impact of tariffs between Canada and the U.S. The Meridian Members: Tariffs Pulse Check report reveals that a significant majority of Members anticipate financial strain, business challenges, and economic uncertainty should tariffs come into effect.
“This survey reinforces the necessity for financial institutions to provide meaningful support, including financing solutions, educational resources, and strategic guidance to help businesses and individuals navigate the potential impact of tariffs,” said Dilys D'Cruz, Senior Vice President of Retail Banking & Wealth Management at Meridian Credit Union. “At Meridian, we recognize the challenges our Members face during times of economic uncertainty.”
Key Findings from the Survey:
- Business Banking: Uncertainty and Cost Management Priorities Over half (52%) of business Members report being profitable, with commercial (72%) and real estate (75%) businesses leading in profitability.
- However, 59% of business Members express pessimism about the Canadian economy, with retail businesses being the least optimistic (16%).
- 81% of business Members are concerned about the impact of tariffs, with retail (94%) and commercial (92%) businesses most worried.
- More than half (65%) anticipate a negative financial impact from potential tariffs, particularly businesses with revenues of $500K+.
- 53% of businesses plan to reduce spending over the next 12 months, with commercial and mid-sized businesses taking the most proactive measures.
- 87% of businesses will seek financial support, with many requesting loans and educational resources from financial institutions like Meridian.
“Canadian businesses have always demonstrated remarkable resilience and adaptability. These survey results underscore the strength and determination of our business community as they navigate the potential impacts of tariffs,” said Kevin VanKampen, Senior Vice President, Business Banking at Meridian. “We understand the unique challenges that our Business Banking Members face, especially in times of economic uncertainty. We are committed to providing the necessary support, including tailored financing solutions and strategic guidance, to help our Members navigate these challenges and continue to thrive.”
Retail & Wealth: Pessimism and Adjustments to Spending
- While 60% of retail and wealth Members report being in good financial standing, a majority (56%) feel pessimistic about Canada’s economy, especially younger Canadians (71% among those aged 18-34).
- 90% of Members are concerned about tariffs, with nearly half (49%) being very concerned.
- 58% believe tariffs will negatively impact their household income, while 38% worry about job security.
- 97% of Members plan to adjust their spending, with 73% prioritizing shopping Canadian/local and 56% cutting back on expenses.
- 91% will seek support from financial institutions, including guidance on local shopping and educational resources about tariffs.
Methodology
The Meridian Members: Tariffs Pulse Check (Q1 2025) survey was conducted among 385 business banking Members and 448 retail/wealth Members of Meridian Credit Union to gauge their perspectives on the potential impact of tariffs between Canada and the U.S. The survey, fielded in Q1 2025, gathered insights from a diverse range of businesses, including small enterprises, commercial operations, and real estate firms, as well as individual Members across different income levels, age groups, and education backgrounds. The research focused on economic sentiment, financial preparedness, and expected behavioral shifts in response to tariff changes, with data collected through an online questionnaire. The findings provide a representative snapshot of how Meridian Members anticipate navigating potential economic disruptions and what support they expect from financial institutions.
About Meridian Credit Union
Meridian is Ontario’s largest credit union, and one of the largest in Canada. Guided by our purpose, “helping you achieve your best life,” Meridian delivers personal, and wealth financial business solutions to over 380,000 Members. Our bold Meridian for Good strategy is aimed at helping people get access to the money and advice they need; plan for a better future that is clean, resilient, and diverse; and be financially confident. Meridian has one operating subsidiary: Meridian OneCap Credit Corp (“MOCC”). For more information, please visit: meridiancu.ca.
We acknowledge the land on which we operate is the traditional territory of many nations including the Mississaugas of the Credit, the Anishinaabe, the Chippewa, the Haudenosaunee and the Wendat peoples and now home to many diverse First Nations, Inuit, and Métis. We also acknowledge that Toronto is covered by Treaty 13 with the Mississaugas of the Credit.
Media contact:
Erick Bauer, Meridian Credit Union
media@meridiancu.ca; 416-587-4185