Written by: Art Sinclair, Vice President, Public Policy & Advocacy
The Canadian Chamber of Commerce (CCC) has just released its Q2-2025 Business Insights Quarterly report – an important snapshot of the current business climate in Canada. Since the implementation of American tariffs and other global trade measures earlier this year, Canadian businesses have been navigating a complex and rapidly changing economic environment. The CCC continues to serve as a critical voice, providing insight into the state of business confidence, economic activity, and sector-specific challenges.
This latest report indicates alarming concerns around higher costs and prices for all businesses and particular challenges for exporters in the Region of Waterloo.
What Does This Mean?
Across Canada, business confidence has declined for the fourth consecutive quarter. This drop is especially stark in Ontario and among sectors such as manufacturing that are deeply reliant on trade. Research also indicates that small businesses are less confident than larger employers. Exporters are facing their lowest confidence levels in years, driven by tariffs, labour disputes, and disrupted supply chains. And consumer demand is now cited as the most pressing challenge for businesses, reflecting shifting economic priorities.
Why Is It Important? And How Does It Impact Waterloo Region?
Despite these current challenges, Canadian businesses are resilient. Many businesses are taking proactive steps by diversifying suppliers, expanding into non-U.S. markets, and building inventory buffers to manage uncertainty.
The impact of these national trends is being felt here in Waterloo Region. As a hub for manufacturing, tech, and innovation, our local economy is deeply connected to global markets. Our local exporters face challenges, including increased shipping costs. Manufacturers are navigating a difficult environment marked by uncertainty in supply chains and pricing. And small businesses, which make up the majority of our Chamber membership, feel less confident and more exposed to the ripple effects of global market volatility.
The current environment requires responsive planning and data-driven decision making across all levels of government.
Our Commitment as Your Chamber
In this time of economic uncertainty, the Greater Kitchener Waterloo Chamber of Commerce remains focused on amplifying the voices of our members. We’ll continue to ensure Canadian decision makers are aware of the on-going obstacles for local employers, and advocate on your behalf.
In the meantime, we continue to offer resources and information (including ChamberCheck.ca and “Ask the Expert” interactive webinar sessions), as updates are made. All businesses are experiencing their own unique challenges, so we also want to hear from you. If you are experiencing an issue or concern that’s impacting your business, please let us know by submitting this form on our website.
As Waterloo Region grows, and as we face heightened global competition, our Chamber is committed to ensuring local businesses are heard, supported, and empowered to succeed.
