Quick survey results: Uncertainty linked to the threat of tariffs 

As the effects of the U.S. tariffs began to emerge in late February, we surveyed 126 Canadian organizations who previously participated in 2025 edition of Normandin Beaudry’s Salary Increase Surveys to assess the impact of tariffs on their proposed 2025 salary increase budgets.  

Approximately 10% of the organizations surveyed plan to reduce their salary increase budgets.

As the current economic context remains unstable, 10% of the Canadian organizations surveyed plan on taking a more conservative approach to finalizing their 2025 salary increases, reporting an expected reduction of 0.5% to 1.0% of their original projected budget. The majority of these organizations are in the manufacturing sector.

Approximately 50% of the participating organizations reported no plans to adjust their salary increase budgets, while 40% of organizations reported that their budget had already been approved, leaving them with limited options for adjustments for this compensation cycle.

With the socio-economic uncertainty introduced by U.S. tariffs, we can anticipate that Canadian organizations will begin to approach future salary increase budgets more conservatively to align with market reality. By embracing caution as a guiding principle, the Canadian market will continue to be resilient and adapt regardless of external influences.

Prior to the launch of Normandin Beaudry’s annual Salary Increase Survey this June, organizations are urged to consider the effectiveness of their non-monetary components as part of their total rewards offering.

Consult our latest results from our annual survey: Salary increases for 2025: Canadian budget forecasts remain closely aligned with summer projections.

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