Statistics Canada reports Canadian corporate profits hit two-year high amid tariff regime
Canadian corporations are defending strong profit margins despite tariff headwinds—a reality starkly at odds with the financial struggles of smaller importers caught in the crossfire.
According to Statistics Canada, operating profits jumped 3.8 percent to $200bn in the third quarter, marking the fastest quarter-over-quarter growth in two years and a $7.4bn increase from the prior quarter.
Year-over-year, profits climbed 5.1 percent, signalling genuine momentum beneath economic uncertainty.
The strength came from two engines: financial institutions and manufacturing.
As per Statistics Canada, financial industries posted a 6 percent gain to $96bn, driven by lower credit provisions and elevated non-interest income.
Banking specifically saw $2.7bn in profit gains.
Meanwhile, manufacturing industries rebounded with a $1.4bn profit increase as 10 of 14 subsectors posted gains, with motor vehicle and trailer manufacturing alone jumping $1.1bn.
The divergence matters.
Large corporations appear insulated by scale and pricing power—BNN Bloomberg reports that Fred Demers, head strategist of multi-asset solutions with BMO Global Asset Management, stated “Firms are defending strong profit margins.”
Yet those tariff costs are being folded into supply chains, meaning refunds won't reach downstream retailers and smaller importers who've already absorbed the hit and lost sales.
Meanwhile, the Trump administration shows no signs of reversing course on tariffs.
According to Bloomberg, US Commerce Secretary Howard Lutnik indicated Monday that importers should get used to paying higher duties regardless of the outcome of a case pending before the US Supreme Court.
“I want to remind you, the president has lots of other authorities,” Lutnick said in an interview on Bloomberg Surveillance from Brussels. “Tariffs are going to be part of this administration going forward.”
