Council of Canadian Innovators

In response to today’s news, CCI President Benjamin Bergen issued the following statement:

“The latest tariffs imposed by the U.S. government are another stark reminder that Canada cannot take access to the American market for granted. Now is a moment for us to prove what we’re capable of; we can build a better and more resilient economy starting today. While we fully support the federal government’s decision to respond with countermeasures, retaliation alone is not a strategy. Canada needs a long-term plan that strengthens our domestic economy, reduces our dependence on unpredictable trading partners, and ensures Canadian firms have the tools they need to compete globally.

“This moment demands more than short-term relief—it demands a fundamental shift in how we think about economic security. Canada remains overly dependent on exporting low-margin raw materials instead of high-value, innovation-driven goods and services. This weakens our negotiating power in global trade and leaves us vulnerable to external economic pressures. A strong response to these tariffs means more than just countermeasures—it means a serious commitment to changing our economic model.

“For decades, Canada’s trade strategy has assumed stability in our relationship with the U.S. That assumption is no longer valid. It is time to take bold action to secure our economic future—by backing Canadian firms, ensuring they have access to growth capital, and positioning them as leaders in global supply chains. This is not just about responding to tariffs—it’s about building an economy that is stronger, more independent, and less vulnerable to political volatility beyond our borders.”

This is a fast-moving story, and we are expecting further developments. In the weeks ahead, we will continue to keep you updated on these economic events, and the impact for the Canadian innovation economy. 

Stay tuned for more.

– Team CCI

———

Dear Innovators,

We’ve been closely tracking today’s developments in the trade war launched by U.S. President Donald Trump.

To break down what’s happened and help businesses prepare for what’s next, join us tomorrow at 3 PM ET for a special edition of Mooseworks Live. Our policy team and trade experts will unpack the latest moves and what they mean for Canadian innovators.

Don’t miss this critical conversation. Register here to attend.

For now, here are the latest updates:

🇺🇸 Late in the day Monday, the United States imposed 25% tariffs on Canadian goods, except for crude oil and critical minerals that are hit with a 10% tariff. 

• The latest: This afternoon, Commerce Secretary Howard Lutnick indicated on Fox News that Trump may negotiate tariff adjustments with Canada and Mexico, with an announcement expected Wednesday. He suggested that both countries have been in discussions with U.S. officials, trying to demonstrate compliance with USMCA, and that Trump is open to offering tariff relief to those following the agreement’s rules.

🇨🇦 In response to the U.S. tariffs, Prime Minister Justin Trudeau announced plans to impose retaliatory 25% tariffs on $155 billion of American goods.

• Initially the Canadian tariffs will only hit $30 billion of imports from the United States, with another $125 billion worth of imports being subject to tariffs in 21 days if the United States doesn’t back down.
  
• When speaking to the media on Tuesday, Prime Minister Trudeau indicated that the federal government may make adjustments to Employment Insurance for workers impacted by the trade war.

⚡️ Ontario Premier Doug Ford threatened to cut off energy to the United States, saying “They need to feel the pain. They want to come at us hard? We’ve got to go back twice as hard.”

• Later, Premier Ford announced he is ripping up the province’s $100 million with Elon Musk’s Starlink and applying a 25 per cent export tariff on Ontario electricity flowing to New York, Michigan and Minnesota.

🍷 Liquor authorities in B.C., Ontario, and Quebec have halted the purchase and sale of American alcohol products, affecting brands like Jack Daniel’s, Kentucky bourbon, and Napa Valley wines. These measures aim to promote local products and reduce reliance on U.S. imports amid escalating trade tensions.

🛢️ Alberta Premier Danielle Smith condemned the U.S. tariffs as an unjustified economic attack and a breach of the U.S.-Canada trade agreement, warning they will harm both American and Canadian workers.

• She expressed full support for the federal government’s response and pledged to announce Alberta’s countermeasures, including removing provincial trade barriers, fast-tracking resource projects, expanding global trade ties, and increasing military spending.

🛒 Atlantic Canada premiers are responding to U.S. tariffs with a mix of trade diversification and procurement restrictions.

• Newfoundland and Labrador’s Premier Andrew Furey is reviewing U.S. procurement and strengthening European market ties.
• Nova Scotia’s Premier Tim Houston plans to introduce legislation to remove interprovincial trade barriers and block U.S. firms from bidding on contracts.
• New Brunswick’s Premier Susan Holt is reviewing contracts with U.S. companies while collaborating with other Atlantic provinces to expand trade and promote local purchasing.
• PEI Premier Rob Lantz announced the province will double the number of trade missions led by Innovation PEI and work to open doors to markets in Europe, South East Asia, Mexico and the Caribbean.

📉 U.S. markets erased all post-election gains as stocks tumbled following the implementation of new tariffs on Canada, Mexico, and China. The Dow fell 1.5%, the S&P 500 dropped 1.6%, and the Nasdaq slid 1.5%, entering correction territory, down 10% from its December peak. 

• The Toronto Stock Exchange/S&P Composite Index fell 1.8%, hitting its lowest level since January 14, marking its worst day in over two months and its second consecutive decline.

Thus far, the tariffs are focused on physical goods, and it does not seem like services and software are directly impacted. Regardless, the economic impacts of the trade war will be felt by everyone, including Canadian technology companies.