Three survey findings that stand out
54% reported a negative impact at work. Respondents said tariffs and U.S. trade disruption had negatively affected their employer or business.
37% reported lower household employment income. Respondents linked that decline to tariffs or trade-related business disruption.
42% reported more household debt. They said their debt had increased since tariffs and trade disruption began affecting their industry.
The findings suggest that missed payments are only one measure of financial pressure. Respondents also reported using more credit and cutting back on necessities, while many said they were still meeting payments but struggling.
How can U.S. tariffs affect Canadian household finances?
U.S. tariffs on Canadian exports can reduce demand for affected products and put pressure on the businesses that sell them. For workers, this may mean fewer hours, lost shifts or less certainty about their jobs.
Tariffs on imported goods can also raise some prices. The Bank of Canada explains how these effects can reach businesses and consumers.
Our survey respondents described several of these employment pressures, including reduced hours, lost overtime or shifts, frozen pay and job losses. When a paycheque shrinks, housing costs, utility bills, and existing debt payments may not shrink with it.
A household can be keeping up with every payment and still have very little room left for an unexpected expense.
“Tariffs may begin as a business issue, but when they affect hours, employment or income, the impact can quickly become a household debt issue. Families often turn first to savings and credit before they begin missing payments.”
— Gillian Goldblatt, Licensed Insolvency Trustee and Partner, msi Spergel Inc.
When borrowing fills the gap
A credit card can help cover a shortfall in the moment, but it can also leave a balance to repay when income is already under pressure.
In our survey, 38% said they had relied more heavily on credit cards to help with household expenses. Nearly three in ten were making only minimum payments, while others reported using savings or carrying balances they would normally have paid off.
These responses point to a form of financial strain that may not yet show up as a missed payment. Someone can be paying the bills while using up the savings or credit they might need for the next unexpected expense.
None of these decisions alone means a household is insolvent. The concern is when borrowing becomes a regular way to pay for essentials, while the amount owed continues to grow. That’s the point at which a temporary income problem can become harder to resolve.
The financial squeeze is reaching everyday essentials
41% of our respondents said they had reduced spending on groceries or other necessities. Others reported delaying bills or reducing contributions to savings. When cuts reach necessities, there may be less room to adjust the budget without affecting daily life.
By the time someone misses a payment, they may have been making difficult trade-offs for months.
In the survey, 63% said they were struggling while still making payments, were already behind, or expected they might fall behind within three months. Most of this group were still making their required payments, though they said it was a struggle. When respondents who said they were keeping up but had little room to spare are included, 84% were financially stretched.
Looking ahead, respondents also said they might make significant spending cuts or major housing and lifestyle changes if conditions continued for another six months. These were possibilities they anticipated, not predictions of what they will do, but they show how respondents are thinking about a prolonged squeeze.
When does financial pressure become a debt problem?
A period of reduced income doesn’t automatically mean debt is unmanageable. Warning signs include regularly using credit to buy groceries, paying only the minimum on debts, delaying one bill to pay another, or finding that balances rise despite efforts to cut spending.
If your work or income has changed, start with a clear picture of what is coming in, what must be paid, and when. Contact lenders or service providers early if you expect to miss a payment and ask what arrangements may be available. It can also help to talk through the full situation with a qualified professional rather than choosing a debt solution based on one bill.
A Licensed Insolvency Trustee can review your income, expenses, assets, and debts, then explain the options that fit your circumstances. These may include budgeting, credit counselling, debt consolidation, a consumer proposal or bankruptcy. Speaking with a trustee doesn’t commit you to filing a proposal or bankruptcy.
Frequently Asked Questions
How can U.S. tariffs affect a household budget in Canada?
Tariffs and trade disruption can put pressure on businesses that sell to or buy from the United States. If that affects working hours or income, a household may have less money for regular expenses and debt payments. Tariffs on imported goods can also raise some prices. The effect will differ by employer and household.
Can tariffs cause household debt to increase?
They can contribute to financial pressure if income falls or costs rise and a household borrows to cover the gap. In our survey, respondents reported both income disruption and rising debt, but the results can’t establish that tariffs caused any individual household’s debt increase.
What should I do if reduced hours make debt payments difficult?
Review your essential expenses and upcoming payments, then contact lenders early if you expect to miss a payment. A Licensed Insolvency Trustee can assess your full financial situation and explain suitable options, including informal approaches and formal debt solutions where appropriate.
Do I need to miss a payment before speaking with a Licensed Insolvency Trustee?
No. You can ask for advice while you’re still keeping up, especially if you regularly use credit for essentials or make only minimum debt payments. A conversation with a trustee doesn’t require you to file for bankruptcy or make a consumer proposal.
Survey methodology
Spergel’s 2026 Tariffs, Jobs and Household Debt Survey received 281 responses between September 22 and 25, 2026. It asked respondents in Canada about tariffs and U.S. trade disruption, employment, household income, borrowing, debt, and their ability to meet financial obligations.
The results describe the people who responded and are not a nationally representative estimate of all Canadian households. The survey relies on reported experiences and cannot establish that tariffs caused any individual household’s debt.
For related findings, read Spergel’s Cost of Getting By in Canada survey and The Emotional Toll of Debt.
Concerned about your debt?
You don’t have to wait until you miss a payment to understand your options. If reduced income or growing balances are making it difficult to keep up, book a free, confidential consultation with Spergel to discuss your situation with a Licensed Insolvency Trustee.
