Trade

The U.S. tariff threat is an opportunity for Canada to strengthen our economic resilience

The Canadian Marketing Association (CMA) urges the federal government to take decisive action to strengthen Canada’s economic resilience and continue to position Canada as a leader in the world amid potential U.S. tariffs. While Canada must mitigate trade tensions, it is equally critical to advance policies that foster innovation and enhance business competitiveness.

Canada’s economy thrives on the strength of our national and local businesses. Canada also benefits from the presence of non-Canadian companies from the United States and beyond. These companies collectively employ thousands of Canadians and invest billions of dollars in Canada’s economy. Many of these companies are CMA members. They contribute to a dynamic and competitive marketplace that supports growth on both sides of the border.

To ensure the Canadian public policy landscape propels Canadian companies, including SMEs, to innovate and compete effectively in the global economy for years to come, the CMA calls on the government to prioritize these key areas:

1. Revoke the Digital Services Tax: Our members are universally concerned about the negative impact of the DST on their businesses. The DST is not only straining relationships with our most important trading partner but also inflicting harm on Canada’s small business sector.
2. Dismantle Interprovincial Trade Barriers: Canadian businesses face unnecessary hurdles due to inconsistent regulations across provinces. Eliminating these obstacles could unleash substantial economic growth, boost productivity and strengthen Canada’s position in international trade agreements and global markets.
3. Fuel Canadian Innovation: Implementing public policies that position Canada as an AI leader is vital to ensure that Canadians reap the economic and social benefits of AI. This entails cultivating world-class research capabilities and talent pipelines, enacting AI regulations that protect public safety, and modernizing privacy and data protection laws to meet global adequacy standards and best practices.

The threat of U.S. tariffs has many business owners concerned about their future. Their concerns are real. It should also be an important catalyst for action. It should bring us together to strengthen our many assets and to reduce our dependency on the US.

There is an opportunity for Canada to lead in the digital world and that requires a vibrant tech ecosystem right here at home. Canada must act with urgency to position businesses for long-term success. The CMA looks forward to working with policymakers to ensure that Canada remains a leader in the global economy.