Introduction: Why Everyday Canadians Are Feeling the Impact
A new trade dispute between Canada and the United States is making life even more difficult for Canadians already struggling with the rising cost of living. With new tariffs introduced on thousands of products, groceries, household goods, and essential items are becoming more expensive.
For individuals carrying high levels of debt, these price hikes are adding to financial stress. Many are turning to credit cards, payday loans, and other high-interest borrowing just to keep up, which only makes their financial situation worse.
For those affected, the question is: What can be done to stay financially stable during these economic shifts?
This article breaks down the impact of these tariffs, how they are worsening debt struggles for Canadian households, and how Pyxis Solutions is helping individuals regain financial control.
How the U.S.-Canada Trade War is Increasing the Cost of Living
New Tariffs on Essential Goods
As of March 2025, the U.S. imposed a 25% tariff on most Canadian exports and a 10% tariff on energy exports, affecting major industries. In response, Canada introduced its own 25% tariffs on over $30 billion worth of U.S. imports, impacting many everyday products.
Key items now subject to higher prices include:
- Groceries: Poultry, eggs, dairy, fresh fruits, vegetables, sugar, coffee, and packaged foods
- Household goods: Soap, shampoo, toiletries, paper towels, and basic consumer products
- Clothing and footwear: Many imported fabrics, shoes, and everyday apparel
- Fuel and heating costs: The weaker Canadian dollar could lead to higher energy prices
- Automobiles and tires: Parts and vehicle costs may rise due to supply chain disruptions
With 70% of vegetables and 40% of fruit in Canada imported from the U.S., grocery costs are among the hardest-hit areas.
Inflation and the Rising Cost of Essentials
The Bank of Canada has warned that tariffs are driving inflation beyond the 2% target, increasing financial pressure on consumers.
Key projections:
- Inflation expected to reach 2.5% by mid-2025, due in part to tariff-related price hikes
- Higher costs of basic goods and services, particularly food and transportation
- The Canadian dollar weakening, making all imports—even from non-U.S. countries—more expensive
For the average consumer, this means higher expenses on necessary items that cannot be avoided. Families that were already struggling to cover rent, groceries, and debt payments will now face additional financial strain.
How Rising Costs are Making Debt Even Harder to Manage
Consumer Debt is at Record Highs
Even before these tariffs, Canadians were struggling with growing debt levels. The latest statistics highlight the financial burden many households are facing:
- Total consumer debt in Canada reached $2.56 trillion in 2024, a 4.6% increase from the previous year
- Credit card debt increased by 7.8%, totalling $130 billion, as more people relied on credit for daily expenses
- Ontario mortgage delinquencies surged by 90.2%, with over 11,000 homeowners missing payments in late 2024
- Payday loan usage has increased, despite annual interest rates (APR) exceeding 400%
Who is Affected the Most?
Low-income households and individuals with significant debt are at the highest risk of financial hardship. The rising costs of essentials combined with high interest rates on loans and credit cards create a cycle of debt that becomes difficult to break.
Key groups facing the biggest challenges:
- Households earning under $40K: More than 56% need help getting out of debt
- Young Canadians (18-34): The highest rate of credit card reliance and skipped bill payments
- Homeowners in Ontario and British Columbia: Facing higher mortgage payments as renewal rates increase
For many, these economic pressures mean being forced to choose between paying bills, buying groceries, or covering rent.
What Can You Do to Protect Your Finances?
1. Reduce Spending on Discretionary Expenses
With inflation rising, now is the time to cut unnecessary expenses and focus on essentials.
- Buy Canadian-made products to avoid higher tariff costs on U.S. imports
- Reduce non-essential purchases such as luxury goods, takeout, and entertainment
- Plan meals carefully to reduce grocery waste and avoid expensive convenience foods
2. Prioritize Debt Repayment
With interest rates still relatively high, managing debt efficiently is crucial.
- Use the Avalanche Method: Pay off high-interest debts first, such as credit cards and payday loans
- Consider debt consolidation to reduce interest rates and streamline payments
- Avoid taking on new debt unless absolutely necessary
3. Seek Financial Guidance
If you are struggling with debt or worried about making payments, now is the time to explore repayment options.
- Look for financial relief programs or government assistance if available
- Work with reputable financial professionals to create a realistic budget
How Pyxis Solutions is Helping Individuals with Debt
At Pyxis Solutions, we recognize that rising costs make debt repayment more challenging. If we have contacted you, it means we have acquired your debt from a previous creditor. Our focus is on finding solutions that works for you.
What We Offer:
- Flexible Repayment Plans – Custom payment schedules based on your financial situation
- Lower Repayment Options – In some cases, we may be able to reduce the total balance owed
- Non-Judgmental Free Support – We understand financial hardship and are here to help
- Financial Guidance – Resources to help you manage debt and prevent future financial struggles
If you have received a notification from Pyxis Solutions, know that we are here to work with you, not against you.
📞 Call us today: 1-888-354-8900
🌐 Visit us online: PyxisGroup.org
Final Thoughts: Taking Control in Uncertain Times
The ongoing U.S.-Canada trade war is adding another financial burden on Canadians, increasing food prices, household expenses, and overall debt stress. For many, these higher costs make an already difficult situation even worse. If you’re curious to learn more about what tariffs are and how they will impact the economy, the article linked will provide more detail.
Now more than ever, it is essential to focus on smart money management, reduce high-interest debt, and explore repayment options.
If Pyxis Solutions has contacted you about a debt we’ve acquired, we encourage you to reach out. We are here to help you create a plan that works for your financial situation, so you can move forward with confidence.
📞 Contact us today: 1-888-354-8900
🌐 Visit us online: PyxisGroup.org