CEO Dinner Unveils New Trade Playbook as Tech Leaders Confront Tariffs

The phrase "When the U.S. sneezes, Canada catches a cold" has gained renewed urgency as Canada navigates the complex landscape of economic dependency on its southern neighbor. This sentiment was echoed by Dan Herman, a prominent keynote speaker at a recent CEO dinner hosted by Communitech in Kitchener. He pointed to historical warnings from Canada’s former Secretary of State for External Affairs, Mitchell Sharp, who in 1972 cautioned about Canada’s vulnerability to U.S. policies and proposed a strategy termed “The Third Option” to strengthen relationships with other countries. However, this strategy was never implemented, leading Canada to remain largely reliant on the U.S. for economic stability.

With former President Donald Trump returning to power amidst the threat of new tariffs, Herman underscored that the stakes are higher than ever. His extensive research and work in economic policy reveal three significant waves of global economic change that Canada has overlooked: the economic rise of the Four Asian Tigers (Japan, Singapore, Hong Kong, and South Korea), China's ascent post-WTO, and the burgeoning startup ecosystems in emerging markets, such as Nairobi, Kenya. Herman argues that while these markets are proving their innovation capacity, Canada remains stagnant within its established trade patterns.

At the event, Jennifer Gruber, Interim CEO and CFO at Communitech, emphasized the need for collaboration among tech leaders in Waterloo Region to adapt and thrive amid these challenges. Facing rising costs and supply chain issues, Herman provided a playbook for Canadian businesses to not only survive but also grow in this unpredictable trade environment. He suggested several key actions:

1. Role of Post-Secondary Institutions: Universities should foster entrepreneurial growth by creating supportive networks and resources that aid international expansion.

2. Leveraging Global Networks: Institutions should utilize the connections of international students to forge stronger relationships that benefit the local and global economy.

3. Incubator Collaboration: Startup incubators and accelerators need to partner with international counterparts to streamline cross-border collaboration and enhance market access.

4. Parenting with a Global Mindset: Families should prioritize international experiences for their children—like internships and language programs—in addition to traditional educational paths.

5. Encouraging Global Exploration: Tech leaders should seek opportunities beyond the familiar U.S. market, researching and tapping into less conventional regions that may offer potential for their products.

Herman urged companies to actively engage with international trade networks and government support to explore new markets. He highlighted a stark reality: while Canada has the talent and innovation, it lags behind in global recognition and engagement. With the competition intensifying, discovering these emerging markets has become crucial to capitalize on global opportunities.

The evening concluded with remarks from notable community leaders, including Tim Rollins from EY and Sean Sullivan from Gowling WLG, both reinforcing the importance of entrepreneurial spirit in overcoming current challenges. As Canadian businesses brace for the potential impacts of U.S. policies, the call for action resonates—both for individual companies and the broader tech community—to seize opportunities internationally and cultivate a more resilient and competitive Canadian economy.