Canadian startups brace for U.S. tariff fallout, survey shows
A new survey from MaRS Discovery District and Communitech finds Canadian startups facing revenue risks and exploring alternative markets as U.S. trade uncertainty grows.
TORONTO, March 31, 2025 /CNW/ - A new survey conducted by MaRS Discovery District and Communitech reveals that Canadian startups are preparing for significant disruption if U.S. tariffs are imposed. More than three-quarters of respondents expect direct or indirect impacts on their businesses, with potential implications for revenue, investment and hiring.
The survey, conducted between February 10 and March 10, 2025, gathered responses from more than 175 startups across healthtech, cleantech and advanced manufacturing. The findings underscore Canadian startups' reliance on U.S. markets and the urgent need for ventures to diversify their revenue streams and secure alternate growth pathways.
Key survey insights:
- 70% of startups generated U.S. revenue in 2024, reflecting an overarching reliance on cross-border trade.
- 41% foresee a direct hit to 2025 revenue if proposed tariffs are imposed, with some companies already exploring new markets.
- 58% raised concerns about cross-border sourcing, voicing worries about supply chain stability.
- 64% of companies are not planning to reduce headcount, affirming a strong commitment to retaining talent in the face of uncertainty.
- 26% of ventures are reassessing international expansion plans with a renewed focus on the U.K., EU and Asia.
"The threat of U.S. tariffs is forcing Canadian founders to rethink growth strategies and explore alternative markets," says Grace Lee Reynolds, CEO of MaRS Discovery District. "This is a critical moment for Canada to strengthen its innovation ecosystem and create new pathways for global growth."
Read the full analysis on the MaRS website: Bracing for impact: Volatile trade relations with the U.S. could have devastating effects on Canada's innovation ecosystem
About MaRS
MaRS Discovery District is a charitable organization and North America's largest urban innovation hub, dedicated to helping Canadian technology companies succeed. With a focus on climate, health sciences and other emerging technologies, MaRS supports startups tackling some of the world's most pressing issues.
MaRS spans more than 1.5 million square feet of cutting-edge office, lab, meeting and event space in downtown Toronto across two locations — the MaRS Centre and MaRS Waterfront. Since 2010, MaRS has helped ventures generate $11.5 billion in cumulative revenue, raise $19 billion in funding, and create and maintain more than 33,000 jobs. The MaRS platform also includes MaRS IAF, one of Canada's top seed-stage venture funds. Through its world-class facilities, strategic programs and partnerships, MaRS accelerates the adoption of groundbreaking Canadian technology and bolsters a globally competitive innovation ecosystem.
SOURCE MaRS Discovery District