Canadian tech is up against a ticking tariff clock

Canada’s unwanted trade war with the United States began with a 30-day détente following multiple conversations between Prime Minister Justin Trudeau and US President Donald Trump on Monday.

The ticking clock extension didn’t slow the trade war news this week, nor BetaKit’s coverage. Monday also saw Ontario Premier Doug Ford threaten to rip up the province’s $100-million contract with Elon Musk-owned Starlink as part of a pledge to ban American companies from provincial contracts. That threat has also been paused.

On Tuesday, Global Affairs Canada’s Deputy Chief Trade warned tech leaders that Canada is “not out of the woods yet,” and reinforced existing government supports to help businesses reach international markets. On Thursday, CDPQ announced a new support program designed to help Québec businesses do just that if and when tariffs hit.

But what about Canadian businesses thoroughly intertwined with the US? BetaKit’s Madison McLauchlan profiled two companies reliant upon US materials and production capacity not found in Canada. “Retaliatory tariffs would just punish us twice,” they said.

On Friday, the prime minister hosted a Canada-US Economic Summit in Toronto. BetaKit has obtained audio of the closed-door portion of the summit, which featured SRTX founder Katherine Homuth asking those assembled for tactical advice days after cutting 40 percent of her workforce in anticipation of an expected 41 percent duty on exports.

In response, Prime Minister Trudeau acknowledged the “real consequences” of the threat of tariffs before saying: “Our goal as a country, and it’s not an unreasonable goal, is to make sure those tariffs never happen.”

While Canadians might hope this 30-day reprieve offers the time to make that happen, our counterparts have their own plans. Late Sunday evening, President Trump said he would announce 25 percent tariffs on steel and aluminum, as well as “reciprocal tariffs” on countries levying duties on US goods.

Tick. Tick. Tick.

Douglas Soltys
Editor-in-chief

4000+ Canadian companies have switched to Float. You should too.

Float is Canada’s complete business finance platform, combining modern financial services and software to help businesses spend, save and grow.

Businesses across the country are embracing a “buy local” approach to Canadian tech, Float offers a home-grown solution for corporate cards, automated expense management, next-day bill payments and 4% interest to help your business grow.

Join Borrowell and 4,000+ companies that trust Float for better financial control. Switch today.

TOP STORIES OF THE WEEK

Canadian tech leaders launch Build Canada for AI-refined policy ideas from entrepreneurs

With elections looming, a group of Canadian technology leaders has teamed up to launch a new platform for entrepreneurs to share policy ideas with the help of experts and artificial intelligence (AI).

Build Canada bills itself as “a platform of bold ideas for growth, innovation, and prosperity” proposed by successful Canadian entrepreneurs with deep knowledge in relevant areas.

The team behind the policy platform lists 28 Canadian tech entrepreneurs as supporters, including outspoken Shopify CEO Tobi Lutke and leaders from Koho, Cohere, and SRTX, among others. It intends to take big policy ideas suggested by Canadian tech entrepreneurs and use a combination of humans and AI tools to research and draft memos, with final review from policy experts before publication.

Lightspeed to stay public company after strategic review

After completing a strategic review of its business and operations, Montréal-based Lightspeed Commerce has announced plans to stay public and execute “a full transformation plan,” to the dismay of investors.

The announcement, which came alongside the release of Lightspeed’s fiscal third-quarter 2025 earnings, indicates that a go-private deal or acquisition is not on the immediate horizon. Lightspeed’s share price dropped approximately 17 percent on the news.

After this week’s earnings call, BetaKit spoke to Lightspeed CEO Dax Dasilva to explore Lightspeed’s focus on its “two crown jewels”: its stock buyback plan, and the talent it’s hiring in its home city of Montréal.

Waabi inks partnership with investor Volvo to develop and deploy self-driving trucks

Toronto-based autonomous vehicle (AV) startup Waabi has teamed up with one of its investors, Swedish automaker Volvo, to build and commercialize self-driving trucks.

In an interview with BetaKit, Waabi founder and CEO Raquel Urtasun described the deal as “a massive step forward” for the AV startup. “It’s the last piece that we needed in order to really have a solution that can scale,” the Canadian AI leader said.

MaRS appoints Grace Lee Reynolds as permanent CEO, adds board members

MaRS Discovery District has appointed Grace Lee Reynolds as its new permanent CEO, letting her shed the interim label before she even officially takes the role.

Some of Lee Reynolds’s strategic priorities as CEO include enhancing support systems to “increase the odds of success” for science and technology ventures, co-space planning, and expanded funding models.

Ontario hardtech and AI incubator ventureLAB and women-focused angel network The Firehood also appointed new leaders this week. The Firehood tapped Theresa Evanoff to be its new executive director as it looks to expand its presence in international markets, while ventureLAB appointed Nima Khadem Mohtaram to become its first-ever head of medtech initiatives.

Clio and Intel add new general managers in Canada as #CDNtech exec shakeups carry into 2025

Burnaby, BC-based legaltech company Clio and American semiconductor company Intel promoted new general managers to oversee their Canadian operations this past week. Meanwhile, startups ThoughtExchange, Verv, and Lorica also made changes at the top.

These appointments reflect Canadian tech companies kicking off 2025 much like they kicked off 2024: by remodeling their leadership.

Wealthsimple launches margin trading feature for eligible users

Toronto-based FinTech giant Wealthsimple launched margin trading accounts for eligible clients this week.

In a blog post announcing the launch, Wealthsimple vice-president of product Swapnil Parikh said that the waitlist for the feature has been one of its largest ever, and those selected for early testing have already accrued more than $40 million in margin balances.

Eligibility is based on self-reported assets, debts, and income, as well as the user’s financial situation at Wealthsimple, a company spokesperson told BetaKit in an email statement.

FEATURED STORIES FROM OUR PARTNERS

With cyberattacks surging, businesses are increasingly looking for protection from insurance—but a new TELUS study indicates that expectations aren’t meeting reality.

Martin Bélanger, Vice President of Technical Sales at TELUS, believes many companies don’t fully understand cyber insurance, resulting in businesses receiving payouts smaller than expected after filing a claim. “Home insurance has been around for decades, so insurers and policy holders know what to protect, but we’re not there yet with cyber insurance,” he said.

Weekly Canadian Deals and Dollars

CAN – Feds launch $175.1M Canadian Genomics Strategy
CGY – RetinaLogik secures $1.1M CAD and Health Canada licence
SSK – Rayhawk closes $3M CAD seed led by Emmertech
KW – Interop Labs donates $1.4M CAD to University of Waterloo for new AI blockchain lab
TOR – Teachers’ Venture Growth leads round valuing StackAdapt at $2.5B USD
TOR – LavaReach acquired by Landbase for undisclosed amount
MTL – FliiP raises $4.4M CAD seed round

The BetaKit Podcast — Is Canada a secret video game powerhouse?

“Part of the magic of the games industry here is that it’s not one thing.”

Entertainment Software Association of Canada (ESAC) president and CEO, Paul Fogolin, joins to discuss video games’ $5.1 billion contribution to Canada’s economy and the results of his organization’s latest study on the Canadian gaming industry.

Take The BetaKit Quiz – This week: Trade war showdown: Buy local, ban Starlink, and Build Canada

Think you’re on top of Canadian tech and innovation news? Time to prove it. Test your knowledge of Canadian tech news with The BetaKit Quiz for Feb. 7, 2025.

On February 25, 2025, Geordie Rose, Jack Newton, Greg Malpass, and other top tech leaders will share the insider playbook on navigating acquisitions, structuring deals, and negotiating like a pro at TechExit.io Vancouver. Connect with Canada’s top founders and investors—because when opportunity knocks, you want to be ready.

Feature image courtesy Amber Mac via LinkedIn.