Day 1 of How Small Business Owners in Canada Can Increase Production Amid U.S. Tariffs: Potato Chips and Snacks
Published on Apr 14, 2025
By Manmeet Kaur, Endefine - Best Digital Marketing Agency in Canada 2025
The U.S. tariffs imposed on Canadian goods—25% as of March 12, 2025—are the shock to the snack industry. For Canadian potato chip and snack business owners, like the makers of Hardbite chips, tariffs mean higher export prices, lower margins, and disrupted supply chains. Add Canada's counter-tariffs on $30 billion of U.S. goods, including basic ingredients, and the pressure is on. But here’s the good news: this challenge is also an opportunity to grow smarter, not harder. At Endefine, we’re helping Canadian businesses pivot and thrive with strategic solutions. Let’s explore how small snack producers can increase production and stay competitive despite U.S. tariffs.
The Tariff Challenge for Canadian Snack Producers
The tariffs have impacted harshly on American, especially on those firms that rely on American markets. Naturally Homegrown Foods, which is the B.C.-based firm that manufactures Hardbite chips, has absorbed the blow—20% of its business goes to the U.S., but wholesalers are insisting on price markdowns to help pay for tariffs, which squeeze margins. Tariffs on imports from America imposed by Canada add to ingredient expenses like oils and seasonings, boosting manufacturing expenses. But with 66% of Canadians now giving "Buy Canadian" products top billing during this trade tensions, there is a golden opportunity to pivot and grow. Here's how.
1. Ride the “Buy Canadian” Wave to Boost Domestic Demand
Canadians are mobilizing to back home brands, with two in three opting to "Buy Canadian" because of tariffs. It is a great chance for snack food makers to capture domestic demand and fuel growth in production.
What to do?
Place "Made in Canada" labels on your packaging and highlight your Canadian roots on social media. Hardbite's "Buy B.C." signs in Stong's Market in North Vancouver, for example, resonate with consumers.
Optimize your website for local search using keywords like "Canadian potato chips" or "snacks made in [your province]." We can help you take over local search and tap into local customers at Endefine.
Partner with local retailers to promote your snacks as a patriotic choice, capitalizing on provincial "Buy Local" campaigns like Ontario's "Buy Ontario first" campaign.
Why It Works?
Increased domestic sales can offset U.S. export losses, producing the revenue to increase production. Toronto businesses like Province of Canada doubled sales in early 2025 by taking advantage of this trend—your snack business can too.
2. Source Ingredients Locally to Save Money
The tariffs imposed by Canada on imported ingredients from the U.S. are adding to the cost of ingredients like oils and seasonings. Sourcing locally will help you avoid paying these tariffs and reduce your costs of production.
What to Do?
Partner with Canadian farmers for potatoes—Prince Edward Island and Alberta are major producers. Source seasonings, oils, and packaging from Canadian suppliers.
Ontario's New Protein International, for example, is building a soy protein plant to process crops from the area, which could be a game-saver for snack makers.
Apply for tariff relief through programs like the Duties Relief Program or Duty Drawback Program, which allow you to import products tariff-free for export or to reclaim tariffs paid.
Why It Works?
Local purchasing saves you money, fulfills customers' needs for Canadian goods, and gives you a more stable supply chain, so you can expand production without having to pay huge sums of money.
3. Move into New Markets with Multilingual Online Campaigns
As exports from the U.S. become less of a choice, it's time to look outside the country. Europe, Asia, and even unreached regions of Canada (e.g., Quebec) offer opportunity for expansion—and online marketing offers the cost-effective means to get there.
What to Do?
Create multilingual landing pages in growth markets. For example, use German for EU expansion or French for Quebec, which are keyword-optimized to fulfill local consumers.
Run geo-targeted ads on Google and Instagram to test demand in growth markets with emerging snacking opportunities, e.g., Asia (where Calbee and others are performing well).
Network at international trade shows like the Savoury Snacks Production Course in Budapest (June 2025) to reach international buyers.
Why It Works?
Market diversification reduces your reliance on the U.S., creating new revenue streams to finance production expansion. Internet-based marketing campaigns enable you to grow with the high transport cost tariffs that otherwise would hold you back.
4. Boost Efficiency in Production with Smart Investment
To increase production, you need to cut costs and streamline operations—especially when margins are tight.
What to Do?
Invest in automating processes like frying or packaging in order to cut labor costs. Small-scale equipment may be an inexpensive start. Fund the upgrades using federal and provincial relief programs.
Ontario offers $9 billion in delayed taxes until October 2025, while the Canadian government has a $6 billion bailout package with $500 million in low-interest loans (BDC base rate minus 2%).
Negotiate large-volume purchases with local suppliers to further lower raw material costs.
Why It Works?
Simplifying production lowers your unit cost, and you can expand output and yet be competitive in price with tariff pressures.
5. Serve More Customers through Digital Accessibility
Making your digital presence accessible isn't just the right thing to do—it's also good business. Since 25% of Canadians live with a disability, this is a $13 trillion market ready to be served.
What to Do?
Provide alt text for product images (e.g., "A bag of kettle chips with a 'Made in Canada' stamp"), captions for videos, and keyboard navigation for your website.
Perform an accessibility audit for WCAG compliance—Endefine's Digital Accessibility Services can help. Publicize your inclusivity with an "Accessibility Certified" badge on your homepage.
Why It Works?
Google ranks accessible websites higher, which will get you in front of more Canadian customers. It also builds trust and loyalty, which will result in sales to drive production growth.
6. Use Data to Stay Agile and Optimize Production
Tariffs are uncertain, and consumers' preferences shift quickly. With data in real-time, you can turn on a dime so as not to overproduce or lose money.
What to Do?
Track website traffic and weekly sales using Google Analytics. If sea salt chips are the top-selling flavor over hot ones, you'd better adjust the production.
Track social media use to find trends. If "Buy Canadian" social media posts get a lot of traction, push in that direction.
Seek advice from provincial programs like Manitoba’s Business Navigator service to scale production efficiently.
Why It Works?
Data-driven decisions ensure you’re producing what sells, maximizing output while minimizing risk.
Partner with Endefine to Thrive Amid Tariffs
Here at Endefine, we delight in transforming Canadian businesses' obstacles into opportunities. Whether it's mastering local SEO, crafting multilingual campaigns, or ensuring your website is usable by all—you can count on us for the playbook—and the case studies—to propel growth for your snack firm. Canada's highest-ranked digital marketing agency of 2025, we conduct data-backed, inclusive marketing that yields results.
Must increase production and tariff-proof your snack business?
📩 Contact us to start your strategy today.
📖 Learn more about us [Here].
The Bottom Line
U.S. tariffs can be a hurdle but are not a roadblock for Canada's potato chip and snack makers. By taking advantage of the "Buy Canadian" sentiment, domestic sourcing, going international, optimizing production, and online marketing, you can speed up production and thrive. Turn this stumbling block into your finest achievement yet—contact Endefine today to get started!
