Survey Response Report
February 27, 2025
Background
• On Feb. 1, U.S. President Trump signed an executive order imposing a 25% tariff on Canadian imports and a 10% levy on Canadian energy, effective Tuesday, Feb. 4.
• In response, Prime Minister Trudeau announced that Canada will impose a 25% tariff on $30 billion worth of American goods starting the same day, followed by an additional $125 billion on American products in 21 days.
• Since then, the tariffs have been delayed for 30 days to allow for further discussions.
• In preparation for the tariffs, the Delta Chamber of Commerce and City of Delta launched a survey for local businesses, seeking to better understand the potential impacts of the proposed tariffs on our economy.
• The survey ran for one week between Feb. 10 and 17, 2025.
Survey Participants
59 Participants 50 Owners and Senior Leaders
1,600 Employees* * Figures are approximate.
>$138M Annual Revenues*
16 Manufacturing Businesses
13 Industry Sectors
Sources of Revenues
76% of all revenue earned by participating businesses comes from Canada compared to 55% for Manufacturing. Manufacturers rely more on U.S. markets for revenue than other participating businesses.
Sources of Inputs
57% of all inputs sourced by participating businesses comes from Canada compared to 44% for Manufacturing. Manufacturers rely more on U.S. markets for inputs than other participating businesses. Inputs
Inputs - Total
U.S. Tariff Impacts
Anticipated Response to U.S. Tariffs
Adapting to U.S. Tariffs
Have you already made changes? (%)
“we just put a few restrictions in place and stand to lose an $88,000 contract”
Yes
No, but planning changes soon.
No, and no changes are planned.
“started sourcing an office in Arizona”
“stockpiling items that may be affected”
“set up separate pricing strategies… expecting the CAD (Canadian Dollar) will drop as tariffs come in”
Canadian Tariffs
Canadian Tariff Impacts on COSTS and PRICES (%)
Anticipated Response to Canadian Tariffs
Awaiting more information on tariff specifics before responding Exploring domestic manufacturing or suppliers Seeking new markets within Canada Diversifying import markets outside the U.S. Investigating available support resources (e.g., Export Navigator, BDC, government programs)
Negotiating with clients on pricing structure Partnering with industry associations to advocate for government policy changes or support Reducing business operations (e.g., layoffs, scaling back production) Other (please specify) Moving part or all business operations outside of Canada
Adapting to Canadian Tariffs
Have you already made changes? (%)
“purchasing from Canadian suppliers more”
“secured domestic suppliers for all parts sourced from the U.S., these suppliers are a little more costly and have longer lead times”
Yes
No, but planning changes soon.
No,and no changes are planned.
“purchasing ahead of schedule to receive some products before tariffs take effect”
Overall Impact on Business
Areas of Support
Council Resolution
1. Allow cities to accept only Canadian businesses in procurement bids.
2. Urge the expedited approval of Fortis BC’s Tilbury Phase 2 LNG expansion project in Delta.
3. Request the immediate commencement of construction on the Massey Tunnel replacement project.
Comments
“Opening up interprovincial trade and business and removing local bureaucracy and sluggishness will have much more of a positive impact than any high-level tariff noise”
“Massey Tunnel replacement project very high on my priority list”
“I cannot pass the increase tariff amounts on goods already sold… in a competitive market the potential to increase prices are limited.”
“I’m already seeing clients holding off on projects because they are being impacted by tariffs (i.e. rebar fabricators, metals recycling)
“Neither we nor our U.S. partners may be able to adapt quickly enough to adopt viable alternatives. If tariffs remain substantial for over a year, we would most likely cease operations.”
Conclusions
• Nearly all participating businesses expect to be impacted by both U.S. (70%) and Canadian (64%) tariffs.
• Manufacturers are more reliant on U.S. markets for revenue and inputs compared to other industries in Delta and expect more severe and significant impacts (63% compared to 41%).
• Impacts are expected to be felt immediately or within 1 to 2 months once tariffs are introduced.
• Most businesses are awaiting information before taking action. (63% planning changes soon.) Some have started seeking domestic suppliers and markets.
• Any effort to pass costs on to consumers is expected to decrease demand according to 33% of participants and nearly all manufacturers.
• Participants are seeking support to identify local suppliers and new suppliers.