As the United States continues its advance and retreat dance on tariffs, one cannot help but recall the adage about cutting off one’s nose to spite one’s face.

Canadians along with people from around the world are scratching their heads in wonder: Why would the U.S. pursue a rapid unwinding of the international order, economic and otherwise, that has served Americans so well?

Canada’s chance to take a giant leap

Evidence that corporate America has capitalized on the global economic order abounds. One case in point: as of March 2025, 22 of the 25 largest companies in the world (by public market capitalization) were based in the U.S. Not a single European or Canadian company cracks this list.

Included in these American giants are the Magnificent Seven tech companies such as Apple, Alphabet and Meta. Together, they generate approximately 50 per cent of their revenue outside the United States, relying on the global economy for their astounding growth.

In the short term, tariffs negatively impact companies from any country, including Canada, wanting to do business in or with America. This includes many American companies.

But, what about the long term?

Now is the time for Canada and other allies to ramp up our technology sectors and take advantage of the short-sighted approach of the U.S. administration by providing Canadian consumers new alternatives.

President Donald Trump has been trying to make the case that short-term pain is worth the potential long-term gains of increased domestic prosperity. Yet, American economic giants benefit more than anybody from the ability to access markets across the globe.

Tariffs and consequences

It may be the U.S. is simply posturing by throwing its weight around as a negotiating tactic in bilateral and multilateral trade and security arrangements. Or, the more concerning possibility is they have far more nefarious goals in mind and are seeking to exert greater power by using economic force to weaken their allies.

As Canadians, we must move ahead under the shadow of both possibilities.

Should the U.S. continue its open hostility towards economic allies, American companies will begin to lose access to international markets. This may happen through financial barriers, regulatory hurdles and consumer choice.

There may not be a competitive alternative to Microsoft today, but new challengers are always emerging to try taking a piece of the market pie. Think TikTok vs Meta, Samsung vs Apple, and Tencent vs Amazon.

If access to international markets shrinks, both the sales figures and the value of these companies will drop materially. The tech oligopoly that has built the current United States domination of global markets could come unglued by their own doing.

Once the trade war starts to truly represent an existential threat to American tech giants, lobbying for the White House to stand down will get louder.

For Canada it may be now or never

Canadians must not squander this opportunity to build Canadian tech giants.

Alongside our economic allies, we need to work to ensure American tech giants feel the pain of what has been unfolding. This must be done carefully to avoid triggering retribution against Canadian companies currently enjoying success in U.S. markets.

Both consumers – through the choices they make – and governments need to provide the right support for Canadian tech companies to grow into the exceptional opportunity ahead.

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We must take a page from the auto industry and ensure domestic production and employment requirements for technology companies. Further, we need to define requirements for tech giants to invest in Canada’s technology ecosystem, similar in scope to the 2023 Online News Act.

Second, policymakers need to ensure that tech companies do not exert undue influence by using their own digital tools to sway public opinion to their liking. The Canadian public needs more details on the way information is pushed to Canadian users, and the 2024 Online Harms Act should require greater algorithmic transparency, in the same vein as the European Union is now starting to require.

Third, we need to provide fiscal and regulatory cover to our domestic tech industry to capitalize on opportunities as U.S. access to global markets recedes.

Canadian companies need to be able to attract and retain the best talent and be encouraged to take smart risks. The government can prioritize tech talent in our immigration screening and continue supporting our strong post-secondary system.

Governments should guarantee more loans to encourage Canadian technology service companies to take smart risks and expand internationally.

The stage needs to be set to encourage the development of made-in-Canada services to challenge the ones we rely on every day, from Apple and Alphabet to Microsoft and Meta. If for no other reason than bolstering national security, Canadians should be able to turn to home grown tech.

But it isn’t just about data security. It is also about trust.

And our trust in the U.S. has been broken by the current tariff war. The country has made it clear that unpredictability is the new normal. In that environment, Canadians need to know they have reliable alternatives to American-made tech solutions.