Surviving and Thriving in a Period Trade Uncertainty

Since the beginning of the U.S. Tariff announcement February 4th, which imposed 25% duty on Canadian imports, the level of consumer and business anxiety continues to heighten in the months following, with a promised resolution this summer. 

In March 2025, MaRS Discovery District and Communitech surveyed Canadian startups to understand the impact from the tariff fallout. The responses gathered from 175 startups across healthtech, cleantech and advanced manufacturing revealed the following: 

• 70% of startups generated U.S. revenue in 2024 

• 41% foresee a direct hit to 2025 revenue if proposed tariffs are imposed 

• 58% raised concerns about cross-border sourcing 

• 64% of companies are not planning to reduce headcount 

• 26% of ventures are reassessing international expansion 

While there is a clear dependence on U.S. revenue, startups have affirmed their need to diversify their market opportunities as well as their supply chains.   

Rethinking solid relationships and opportunities south of the border is the new reality and startup founders are looking for ways to stay ahead of the curve, amidst the growing U.S./Canada trade tensions and evolving political dynamics.

Sustainable Business Strategies  

For tech startups who develop physical goods — particularly within advanced manufacturing, clean tech, IoT, tariffs have a penalizing impact on cost and scaling opportunities. 

When re-evaluating current supply chain contracts, Brigitte LeBlanc Lapointe of Norton Rose Fulbright, in her discussion with Hessie Jones, advises 

“Parties entering into contracts for the delivery of goods by the supplier or even businesses reviewing their existing contracts should pay particular attention to contractual clauses regarding import taxes, duties and fees, including any references to whether the delivery price is inclusive of all taxes, duties, tariffs or fees (being mindful of terms like Delivery Duty, Delivery Duty Paid, etc.). 

She adds, that business will need to consider  whether and how supply chains can be diversified, adding, “This will depend on their existing supply arrangements and the availability of alternate sources of supply, either domestically or in countries where Canada has a free trade agreement like the Canada-European Union Comprehensive Economic and Trade Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.”  

In an earlier post, US Tariffs are Here: Canadian Business Must Be Prepared to Operate in a Volatile Economy, we mapped out how businesses must think differently in the coming months and build an all-hands-on-deck mentality within a new compressed timeline: 

“In response to the U.S. administration, you need to shift to a new approach to planning. This is now your new time horizon:  

• Immediate aftermath (30 days):  
  This is now your short-term focus. It’s crucial to have a plan ready for the month immediately following a disruptive event or shock. 
  • Your critical performance metrics: 
    • Liquidity – Can I pay my bills?  
    • Profitability – What are my margins?  
    • Productivity – Am I making the most of my assets?  
    • Leverage – How much debt am I carrying? 
    • Break/Even Point 

• Quarter horizon (2-3 months):  
  This becomes your medium-term outlook. It covers the remainder of the current quarter after the initial 30-day period.  
  • Focus on: 
    • Cost Management 
    • Pricing Strategy Reassessment 
    • Supply Chain 

• Extended view (6 months):  
  This is now considered your long-term perspective. While you can make some educated guesses about this timeframe, it’s important to recognize that certainty decreases as you look further ahead.  
  • Diversification is key: customers, suppliers, channels 

Read here for detailed time horizon strategies. 

Government Programs and Resources  

LeBlanc Lapointe provided the following federal support programs available: 

1. EDC’s Trade Impact Program, which will deploy $5 billion over two years to help exporters reach new markets and navigate economic challenges such as non-payment, currency fluctuations, cashflow issues, and expansion barriers. 
2. BDC’s Pivot to Grow Program, which will offer $500 million in financial support, advice, and loan deferrals to small and medium-sized businesses with concrete impacts on their financials as a direct result of U.S. tariffs.  
3. Farm Credit Canada’s Trade Disruption Customer Support Program, which offers $1 billion in new financing to support the Canadian agriculture and food industry by addressing cashflow challenges.    
4. Expanded Employment Insurance Work-Sharing Program, which assists employers in avoiding layoffs when they face a temporary decrease in business activity for reasons beyond their control. If program requirements are met, an employer, employees (or their union, if any) and Service Canada enter into a multi-party work-sharing agreement.  

Parallel efforts are underway at Ontario’s provincial level, most notably the Trade‑Impacted Communities Program (TICP). This initiative supports regions and local industries facing significant economic stress due to U.S. policy shifts, offering tailored economic and workforce development support. 

Brampton’s Economic Development Office and Invest Brampton established a “Tariffs Resource Hub” with real‑time updates, expert guidance, and policy advocacy to drive business resilience.  

In addition, the Brampton Board of Trade has championed “Made in Canada” procurement and strengthened local procurement frameworks as part of its tariff-response advocacy 

Local authorities, including Peel Region Council, have adjusted procurement policies to favour Canadian suppliers and soften the tariff impact. This also includes expanding the local vendor base and revisiting current procurement policies to ensure local community sustainability. 

Altitude Accelerator partners with innovators facing these exact challenges. If you’re navigating export uncertainties, supply-chain risk, or tariff exposure, our expertise and access to these public programs can be a game‑changer for your growth trajectory. 

Please contact us for more information communications@altitudeaccelerator.ca