Tariff Townhall: Navigating New Markets Amid Uncertainty

As of April 2, a 25 percent U.S. tariff is in effect, creating increasing uncertainty for Canadian tech companies reliant on the U.S. market. To help navigate this challenging landscape, Communitech organized a Tariff Townhall aimed at exploring new avenues for Canadian businesses. The session featured insights from industry experts, including Michael Barton from Invest Northern Ireland, Mathilde Brillu from Expertise France, and Tim Rollins from EY Canada.

The need to explore markets beyond the U.S. arises from the current market volatility, which prompts Canadian founders to seek diversification in their trading relationships. Rollins pointed out that while the U.S. market is fraught with uncertainty, it presents a unique opportunity for Canadian companies to investigate potential expansion in other regions.

Both Northern Ireland and France emerged as promising destinations for Canadian tech firms. Barton highlighted that Northern Ireland offers tariff-free access to both the European Union and the United Kingdom, making it a strategic point for entering these robust markets. This region is rapidly becoming a hub for tech and aerospace sectors, supported by a well-educated workforce and government initiatives like the Assured Skills Academies. This program connects companies to talent through educational channels, reporting significant success in supporting over 1,500 international businesses.

In France, Brillu noted the government’s substantial investments in energy, digital transformation, and artificial intelligence—areas where Canada is well-positioned to collaborate. With substantial tax incentives for startups and a proclivity for fostering cross-border partnerships, France presents an inviting landscape for Canadian enterprises. The existing synergies between Canada and France in sectors such as cleantech and medtech create additional opportunities for collaboration.

For those contemplating entry into these new markets, both experts emphasized the importance of leveraging support networks. Connecting with Trade Commissioners, regional organizations like Invest Northern Ireland, or Expertise France can facilitate navigating compliance, hiring, and market strategies. Previous collaborations with platforms like Communitech Outposts could serve as a foundation for forging new partnerships and access points in these environments.

In light of ongoing pressures from tariffs and U.S. market fluctuations, Canadian tech companies are encouraged to explore international opportunities actively. The potential for growth outside the U.S. is substantial; by identifying and developing key partnerships, businesses can position themselves favorably globally.

While the future may appear unpredictable, it is also teeming with potential for Canadian tech firms. The call to action is clear: businesses should not attempt this journey alone, and resources are available to support their exploration of international opportunities. Interested companies are encouraged to seek guidance to begin building those essential relationships that could pave the way for future success.