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With the looming threat of new U.S. tariffs, Canadian businesses are bracing for potential financial pressures like rising costs, disrupted supply chains and shrinking profit margins.For many organizations this uncertainty brings difficult conversations about budget cuts, layoffs or even the risk of business closures. While leaders scramble to keep operations steady, it’s crucial to recognize that employees are feeling this pressure too. The fear of losing their job or seeing their company struggle can take a significant toll on mental health. So, how can Canadian employers support their teams through these turbulent times? Keep these seven tips top-of-mind:
1. Acknowledge the Elephant in the Room
Don’t leave employees guessing. Even if you can’t guarantee stability, openly communicate about the challenges your business is facing due to the tariffs. Transparency builds trust and helps reduce the anxiety that comes from uncertainty. Let employees know you’re doing everything you can to weather the storm — and that they’re part of that process.
2. Prioritize Psychological Safety
In times of economic stress, employees may fear that admitting to feeling overwhelmed will make them seem like a liability. Create an environment where it’s safe to express concerns, whether about job security, workload or general mental health. Encourage managers to check in not just on tasks but on how people are coping emotionally with the uncertainty.
3. Offer Flexibility to Manage Stress
Tariff-related disruptions may mean tighter deadlines, shifting roles or increased workloads as companies try to adjust. Offering flexible work arrangements like remote work options or adjusted hours can help employees better manage both their professional responsibilities and personal stress, especially if financial worries are creeping into their home life.
4. Leverage Mental Health Resources
Fear of layoffs or business closures can trigger significant anxiety. Make sure employees are aware of resources like your Employee Assistance Programs, mental health benefits (e.g. insurance coverage for counselling sessions) or community support services. You may even consider bringing in mental health professionals to offer guidance on coping with financial stress or uncertainty.
5. Support Your Managers (They’re in the Hot Seat)
Leaders are often the first to feel pressure from both sides: managing upper-level expectations while supporting their teams. Equip your managers and supervisors with tools to manage their own stress and create psychologically safe spaces for their teams. Remember, stressed-out leaders can unintentionally amplify workplace anxiety.
6. Foster a Sense of Stability Through Community
When external factors threaten job security, internal solidarity becomes even more important. Build a sense of community within your teams through regular check-ins, open forums for discussion and team-building activities. Knowing they’re not alone can help employees feel more secure and supported.
7. Recognize and Celebrate the Wins
During tough times, morale can easily take a hit. Take every opportunity to celebrate successes, whether it’s meeting a tough deadline, finding creative solutions to a challenge or simply maintaining a positive work environment. Recognizing employees’ contributions reinforces that their work is valued, even when times are tough.
While you may not have control over the tariff situation, you can play a key role in supporting your team through the uncertainty it creates. By prioritizing psychological health and safety, you can arm your team members with the tools they need to navigate the stress brought on by the heavy political climate and rapidly shifting economic conditions. In doing so you’ll build a stronger, more resilient workforce that’s ready to face whatever challenges lie ahead.
Elizabeth Eldridge is a Psychological Health & Safety Consultant based in southern New Brunswick, Canada. In addition to keynote speaking and corporate training on mental health in the workplace she is the Founder & President of Arpeggio Health Services which provides standardized education programs like Mental Health First Aid from coast to coast.
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