Canadian tech firms feel the pinch as US economic slowdown and tariffs disrupt global sales and shrink business opportunities.
A brewing economic storm in the United States is threatening the global growth of Canadian technology firms. Amid rising tariffs and uncertainty surrounding trade policies, Canadian companies with international clients are now grappling with slowed sales and disrupted revenue pipelines.
Tariffs Raise Costs, Cloud Forecasts
The US economy shrank by 0.3% in Q1 2025—the worst contraction since early 2022. The International Monetary Fund has warned of “sluggish growth” ahead. Economists point to President Donald Trump’s sweeping tariff regime and fading consumer confidence as key drivers behind this downturn.
For Canadian tech exporters, these ripple effects are hitting hard. Even firms not directly impacted by tariffs are seeing deals stall and customer budgets tighten.
SOTI Feels the Pressure of US Slowdown
Mississauga-based enterprise mobility firm SOTI, which manages over 17,000 global clients, is one such company. CEO Carl Rodrigues says deals with US companies—45% of SOTI’s revenue—are being delayed as clients deal with rising import costs, some as high as 145%.
“If anybody tells you they’re not affected by the tariffs… they don’t know what’s going on in their company,” Rodrigues said.
SOTI isn’t alone. E-commerce platforms Shopify and Lightspeed have both warned of long-term challenges stemming from US-China trade friction.
Diversification Sounds Promising, But Execution Is Tough
Both federal and provincial governments in Canada are encouraging firms to expand beyond US markets. Ottawa recently launched a $5 billion Export Development Canada program to support such efforts, while Québec’s budget also earmarked funding for export diversification.
However, for seasoned global players like SOTI, finding new markets is easier said than done. “If you’re a global company, you’ve already explored selling into every key market in the world,” Rodrigues noted.
Global Clients, US Exposure
Even international clients aren’t immune. A German automaker, for example, faces increased costs due to US tariffs on Chinese components, leading to budget cuts that extend to service providers like SOTI.
Aggressive Sales, Creative Strategies Are the New Normal
With over $300 million in annual recurring revenue, SOTI is ramping up its outreach—conducting in-person training, nurturing global client relationships, and encouraging referrals from key partners.
Rodrigues urges Canadian tech leaders to rethink their sales playbooks. “You have got to be innovative in how you sell and how you adjust. Creative companies figure it out.”
Stay tuned to Maple News Wire for more insights on global tech trends.
