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Tariff Costs Put New Pressure on U.S. Corporate Profits

Rising tariff expenses are beginning to weigh heavily on U.S. companies, prompting executives across multiple industries to warn that profit margins may tighten in the months ahead. Many firms had initially suggested they could manage the added costs through efficiency improvements or selective price increases, but that confidence is fading as import-related expenses continue to climb. Companies that rely on global supply chains are feeling the strain most acutely. Higher costs on imported materials and components are forcing difficult decisions: pass the increases on to consumers, risking weaker demand, or absorb the costs internally, which directly erodes profitability. For many businesses, neither option is attractive. Consumer-facing brands are finding it especially challenging to raise prices further, as shoppers show growing sensitivity to even modest increases. This resistance limits the ability of firms to offset tariff-driven expenses, creating a squeeze that is beginning t...
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Mixed Reactions as Federal Government’s GST Holiday Takes Effect

 

The federal government’s two-month GST holiday, which began on Saturday, has elicited mixed reactions from both businesses and shoppers across Canada. The temporary tax break, aimed at easing affordability concerns during the holiday season, waives the five percent goods and services tax on a range of items including restaurant meals, children’s clothing, and toys.

Businesses Struggle with Compliance

Many businesses have found the implementation of the GST holiday to be an administrative burden. Patrick Neault, general manager of Raffin Bookstore in Montreal, mentioned that his staff had to work extra hours to ensure compliance with the new regulations. “It’s not that much of a deal. It’s like a few percent discount on a transaction,” Neault said, expressing doubt about whether the benefits outweigh the extra work.

Shoppers Show Limited Enthusiasm

Shoppers have also shown lukewarm enthusiasm for the tax break. While some, like Katrina Rose from Halifax, took advantage of the savings on holiday purchases, others, like Jennifer Matthew, felt the savings were too minimal to make a significant impact. “I don’t think it’s going to put a big dent in my wallet by any means,” Matthew said.

Conclusion

As the GST holiday continues until February 15, 2025, businesses and shoppers alike are cautiously optimistic about its potential benefits. While some appreciate the temporary relief, others remain skeptical about its long-term impact.




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