We Saw This Coming: Tariff Impact on Canadian Boards

In December 2024, two of Kingsdale Advisors’ executive vice presidents sat down with Director Journal to discuss what boards should be watching as they prepared for the year ahead.

The conversation, published in the January/February 2025 issue of the Institute of Corporate Directors’ flagship publication, explored how risk, timing, and leadership would intersect in the months to come. Today, with newly imposed U.S. tariffs on Canadian goods and escalating cross-border uncertainty, much of what was discussed is now reality.

Here are excerpts of our insights from the interview.

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“This is all about risk management…the tariff impact is probably much larger than our federal election.”

— Shengjun (Victor) Li, Executive Vice President, Governance Advisory

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At the time, the conversation was forward-looking. Now, it feels immediate.

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“Every significant corporation in Canada will add the discussion of tariffs to the agenda of their next directors’ meeting.”

— Tom Graham, Executive Vice President, Canada

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The interviews called for rigour over reaction, encouraging boards to balance stakeholder expectations, ESG priorities, and market signals with a clear-eyed view of emerging risk.

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“Regardless of the timing, it is critical for directors and management to continue to engage with shareholders and other stakeholders during challenging times and be ready.”

— Tom Graham, Executive Vice President, Canada

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“Board decisions must also take into account factors such as diverging interest rates between Canada and the United States, differing tax policies, and the comparative value of the two countries’ currencies and productivity rates.”

— Shengjun (Victor) Li, Executive Vice President, Governance Advisory

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Kingsdale continues to work closely with boards navigating uncertainty and helping them stay grounded, proactive, and accountable to the long-term health of their companies.

You can read the full ICD Director Journal article, “Hold That Thought?”, here: https://www.icd.ca/insights/director-lens/director-journal/2025/director-journal-january-february