MNP LLP Challenges and Opportunities in a Volatile Market: Preparing for the Impact of Tariffs

Navigating today’s constantly changing trade environment is a challenge for manufacturers across the country.  

Since talk of U.S. imposed tariffs began, MNP LLP, which works with farmers and small and medium-sized businesses across Canada, has been helping clients take stock of how their operations may be impacted and develop a plan to move forward in the face of economic uncertainty. Founded in Brandon, Manitoba in  1958, MNP provides management consulting services in more than  150 communities from coast to coast.  

“While MNP’s role as a trusted business advisor is always to step up for our clients and work as part of their team, that has kicked into high gear with the ongoing trade uncertainty,” says Steve Kwasny, Senior Manager, Advisory Services at MNP LLP. “Our clients are looking to us for clarity in a world where things aren’t clear.” 

A new trade era

Knowing what to do is a challenge when Canadian businesses really haven’t had to operate in a trade environment with tariffs in decades. 

“There isn’t a lot of muscle memory  for moving through a high-tariff environment,” notes Calgary-based Kwasny, who is leading MNP’s tariff response across Canada. “People  can get overwhelmed by the lingo – tariffs are a new vocabulary for  a lot of people.”

That’s where business advisors like MNP can be a valuable partner to help sift through the information to determine what your risk might be and what you can do to plan. The first step is understanding your business.  

“To oversimplify – what do you buy, what do you sell and what goes into those things?” says Kwasny, who emphasizes the importance of diving into your financials and using actual data to understand what’s being affected.

Identify potential scenarios

Analyzing sales volume, pricing, direct and indirect costs, capital expenditures and cash flow can provide valuable insights for financial modeling. Scenario planning is a powerful tool that businesses can use to evaluate potential risks and map out a path forward. Considering different scenarios provides a framework to guide strategic and operational decisions - especially in uncertain environments. 

“It’s really critical to drive these discussions with data to inform decision making rather than try to rely on the news cycle,” Kwasny says. “It’s easy to get lost in the noise.” 

MNP has developed a proprietary online tool to help give their clients a better understanding of their potential risk exposure to tariffs. The Trade Impact Navigator uses a short, nine question assessment to identify a client’s business risk level and provides insights on what they can do to remain resilient with actionable next steps. 

Challenges bring opportunities

While there is a lot of uncertainty, there is also opportunity. With everything going on south of the border, U.S. businesses are looking  to come to Canada, which means potential new customers and suppliers. Canadian businesses should also look beyond borders to grow east-west instead of north-south. 

“If the rest of the world is looking outside of the U.S., there is a chance for Canadian businesses to step up,” Kwasny says, noting that “every crisis breeds opportunity”.  

With things changing so quickly and so much information to digest, he says collaboration is critical to navigating the current trade environment. It’s important to have a strong team in place to navigate the challenges, which can include lawyers, accountants, lenders, bankers, customs brokers and business advisors like MNP. 

“No one asked for this – we need to try to navigate it together,” says Kwasny. “That’s our firm’s culture and the same thing we try to instill in our clients.