Hope is not a plan. Be ready for a bumpy ride.

These were some of the insights shared by experts during a Tariff Talk event hosted by Communitech with partners from EY and Gowling WLG. The event, which took place on Feb. 6, 2025, brought together founders and the tech community at the Communitech Hub to discuss how Canadian businesses can best prepare for the potential impact of U.S. tariffs.

Tim Rollins, Waterloo Region Office Managing Partner and Tax Account Leader at EY, Hunter Fox, Associate at Gowling WLG, and Chris Andree, Partner at Gowling WLG, answered questions to help founders understand how the current trade climate could affect their businesses and the steps they should take to face any challenges ahead.

‘Don’t get caught flat-footed’

The experts highlighted one big point: don’t wait until the last minute. When tariffs were last announced, many businesses found themselves scrambling to figure out their next steps, reaching out to clients and partners at the “last minute”. They shared how they received hundreds of emails and calls from companies trying to quickly put a solid plan in place.

U.S. President Donald Trump put a 30-day pause on tariffs. During this time, founders were encouraged to use the window wisely to make a plan. Final decisions don’t need to be made immediately, but it's important to start thinking through options and strategies. Founders were also advised to brace themselves for a potentially bumpy ride over the next 15 to 18 months.

One of the biggest pieces of advice for tech startup founders was to get some professional guidance. Sometimes what seems like an obvious solution, like changing pricing or making quick adjustments, can end up causing more problems than it solves. Unintended liabilities can sneak up, so it’s worth talking to someone who knows the ins and outs.

The discussion highlighted that the uncertainty we’re facing isn’t just about tariffs but also about a broader shift in trade and how countries are protecting their industries. Think of it as the “new normal” for at least the next year or so. Whether it’s tariffs or other changes, it’s important to stay flexible and ready for whatever comes next.

Rethinking market reliance

One question that came up during the discussion was whether startups should withdraw from the U.S. market. While it’s tempting to think that leaving the U.S. is the solution, the experts don’t think that’s the best approach.

Instead, what they recommend is using this as a call to diversify. Don’t be so heavily reliant on just one market, especially the U.S. While it’s close and convenient, it’s not always going to be the best option. The global trade environment is changing, and countries are starting to rethink how they approach manufacturing and trade. This isn’t the first time the U.S. and Canada have been in a trade war, and it probably won’t be the last, they said.

One analogy used to explain this was: if your business is a stool and it only has one leg to stand on (like relying on the U.S.), your stool is going to topple over. The idea is that you need to build a more stable foundation by diversifying your markets. This doesn’t mean abandoning the U.S., but rather exploring new opportunities and markets around the world. The more diverse your business, the less vulnerable you’ll be to external changes.

Bracing for impact

The overall message for founders was to stay flexible, stay informed and don’t be afraid to diversify your markets. This period of uncertainty won’t last forever, but by planning and getting the right advice, business leaders can be in a better position to ride out the tariff turbulence.

To stay up-to-date, join the Communitech Tariff Tracker chat group and visit our Advocacy & impact page to learn more about how we’re pushing for solutions that make our ecosystem a more competitive place for founders to start, grow and succeed.

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