Investing Our Way Through Tariff Challenges: Canada's Opportunity

Tariffs and trade restrictions are still putting pressure on Canadian businesses and consumers. But rather than seeing these as roadblocks Ehren Cory, CEO of Export Development Canada (EDC), suggests Canadians should look at these challenges as an investment opportunity.

Cory says, “If we want to protect Canadian businesses from global shocks like tariffs, the answer is not to retreat. It’s to double down on competitiveness, on productivity, on investing in our capacity."

Investing in Productivity and Capacity

Cory argues that tariffs and protectionism are symptoms of a broader global trend, but Canada's response should be proactive rather than defensive.

"The way forward for Canada is investing in productivity, investing in innovation, investing in our infrastructure to make sure we’re the best place to do business," Cory emphasized.

He highlights the need for Canadian businesses to look beyond today's tariff headlines and focus on building long-term resilience.

"You can't predict every policy shift, but you can make sure your business is the one that others turn to because you're more efficient, more innovative, more reliable," Cory remarked.

Accessing New Markets Through Investment|

Diversification both in markets and investments is essential in a more fragmented global economy.

"One of the ways to protect against tariffs is to ensure you're not reliant on one market. That means investing in the capabilities to export to new regions, to build relationships, to adapt products to new standards," Cory said.

This is where investors, too, can take lessons from businesses. As Faisal Karmali says, "instead of complaining about tariffs, let's look at how they impact different sectors, and how as investors, we can take advantage of these situations."

Turning Challenges into Catalysts

Cory believes that these trade disruptions can act as catalysts for much-needed change in the Canadian economy.

"We’ve been talking about productivity for decades in Canada, but global uncertainty should push us to finally make those investments. Tariffs are a problem, but they can also be a spur to action," Cory explained.

Bottom Line: Invest, Don't Retreat

In times of trade uncertainty, Cory's message to Canadian businesses and investors is clear:

"The worst thing we could do is pause or pull back. We need to invest our way through it, not hide from it."

That mindset, he says, is what will separate the businesses that survive from those that thrive.

The other investment opportunity lies in our own country too.  Many have been calling for years to have the provincial trade barriers removed.  Some estimate that could free up as much as 200 billion dollars in trade which would offset the losses due to the tariffs.

David Popowich and Faisal Karmali are Investment Advisors with CIBC Wood Gundy in Calgary. The views of David Popowich, Faisal Karmali, and guest author do not necessarily reflect those of CIBC World Markets Inc.

This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change.

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