Global Expansion and Market Diversification Amid Tariffs

In the face of economic and geopolitical uncertainty, Waterloo Region’s tech leaders are strategizing how to manage risks and compete globally.

In response to this, Communitech’s recent Tariff Townhall on March 31, 2025 discussed global market expansion and diversification. The expert panel brought together expertise from EY, Gowling WLG, and Canada’s Trade Commissioner Service. 

Risk exposure in a shifting economic environment

While many companies began 2025 with a “wait and see approach” to tariffs, a changing geopolitical landscape is requiring companies to take focused action, according to Mauricio Zelaya, Partner and National Economics Leader with EY Canada.

Zelaya provided a structured framework for companies navigating the tariff threat, starting first with a rapid diagnostic assessment. He encouraged companies to consider direct and indirect risks, like limited procurement opportunities, depreciation of the Canadian dollar, and price increases across all aspects of the supply chain, and to remain informed amid these shifts. 

Based on the nature of their risk exposure, companies should also model financial implications, especially in a future of escalating or prolonged tariffs. Zelaya advised business leaders to understand their vulnerabilities and adjust their long-term and short-term business strategies accordingly.

A time for global market expansion

A longstanding resource for local tech companies is Canada’s Trade Commissioner Service (TCS). The TCS's global network provides personalized advice to Canadian companies to help make informed decisions and succeed internationally. Services include introductions to key contacts, identification of business leads and troubleshooting support to help Canadian exporters navigate tariffs and market shifts. 

There is tremendous opportunity in global markets such as the European Union, Indo-Pacific, and Latin America, suported by Canada’s numerous free trade agreements. Companies can also take advantage of the CanExport SME program funding to help offset the risk of developing new markets. 

Companies looking to expand their reach are best to focus their efforts on a small number of priority markets. In addition, to targeted advice, the TCS has various self-serve diversification resources available on their website. A commitment of time, effort and resources to establish and maintain successful commercial relationships is critical for Canadian tech companies looking to broaden their market base in the long term. 

The TCS also has resources and networks within the US for companies looking for problem-solving in our largest market. See: Supporting Canadian exporters through United States tariff challenges.

Looking Ahead

As Canadian tech leaders look to navigate the risks presented by tariffs, panelists advised that there are a multitude of opportunities available to businesses. Through proper risk evaluation and management, Canadian companies can mitigate challenges and diversify through global expansion.