Canada's business landscape is shifting fast. With the reintroduction of U.S. tariffs under the new Trump administration, the cost of exporting to the United States has gone up significantly — impacting thousands of products and squeezing margins across sectors like manufacturing, retail, agriculture, and eCommerce.
At a time when many businesses are asking, “How Canadian businesses can manage U.S. tariff impact”, the federal government has launched a major support package: the Trade Impact Program, a $5 billion initiative delivered through Export Development Canada (EDC).
This program is designed to help Canadian businesses:
- Offset the risks of international trade
- Access new global markets beyond the U.S.
- Manage the financial uncertainty that comes with higher operational costs and supply chain disruptions
If you're a current or aspiring Canadian business owner, understanding this program — and how to use it — could be one of the smartest moves you make in 2025.
The Trade Impact Program Canada at a Glance
The program, announced in March 2025, is part of a larger $6.5 billion economic relief and growth strategy. Its core purpose: support businesses exposed to international trade volatility, especially those exporting to the U.S.
Here’s what it includes:
1. Trade Credit Insurance
If a foreign customer fails to pay due to bankruptcy, political instability, or new market conditions, your business doesn’t have to absorb that loss alone. EDC’s credit insurance can cover up to 90% of the invoice value. This is especially crucial now that more U.S. buyers are delaying payments due to their own economic pressures.
💡Use case: A small Calgary-based manufacturer exporting to the U.S. secures their receivables using EDC’s credit insurance, ensuring they don’t lose thousands if a buyer defaults.
2. Foreign Exchange Risk Management
Currency fluctuations are harder to predict during trade instability. If your revenues are in USD and expenses in CAD (or vice versa), small changes in the exchange rate can wipe out your margins. The program offers tailored solutions to lock in rates and manage currency exposure.
💡Use case: A BC-based skincare company selling online in the U.S. uses EDC’s FX risk tools to lock in pricing and stabilize profits despite currency shifts.
3. Working Capital Support
EDC shares the risk with your bank, making it easier to access loans and lines of credit. This is ideal for businesses needing more liquidity to deal with rising costs, longer payment terms, or scaling efforts.
💡Use case: An Alberta logistics company sees an uptick in cross-border demand but needs upfront capital for trucks and staffing. EDC guarantees the bank loan, making approval easier and faster.
4. Global Expansion Financing
This feature helps companies pivot from a U.S.-heavy export model to broader international markets — Europe, Asia, Latin America — by financing the expansion of operations or acquisitions abroad.
💡Use case: A Toronto tech company wants to open a small distribution office in Germany to reduce reliance on the U.S. market. EDC financing makes the expansion possible without draining core operations.
Who’s Eligible?
- Canadian exporters of any size, from early-stage startups to mature enterprises
- Suppliers to exporters, including logistics providers, manufacturers, fulfillment companies, and packaging businesses
- Companies that want to expand globally but are currently underexposed to non-U.S. markets
You don’t need to be a massive corporation — even small Canadian businesses and eCommerce brands are encouraged to apply.
How to Apply
To get started:
- Visit the official EDC Trade Impact Program Canada page
- Submit a brief intake form or connect directly with an EDC advisor
- Discuss your needs — whether it’s financing, insurance, or market access — and they’ll match you with the right tools
The application process is straightforward, especially for businesses that already have export activity or solid financial records.
What This Means for You
The U.S. will always be a key trading partner — but the current climate highlights the danger of overdependence. This program is a chance to:
- De-risk your current export model
- Build long-term financial resilience
- Explore new markets with expert backing
Even if you’re not exporting today, it’s worth learning about these tools now, especially if you see global sales as part of your long-term vision.
Bonus: Complementary Programs
The federal government has also introduced:
- $1 billion in sector-specific support for agriculture, food, and natural resources
- $500 million in low-interest loans for SMEs looking to hire, pivot, or scale
- Tax credits and grants for digital transformation and clean tech adoption
These resources can work alongside the Trade Impact Program Canada to help you not just survive, but thrive.
Final Thought: Don’t Wait
In economic downturns and trade crises, the winners are often the ones who act early — not just to shield themselves from risk, but to position for growth while others retreat.
If you're looking to grow beyond borders, protect your margins, or future-proof your supply chain, this program may be the boost you need.
👋 Need Flexible Space or Fulfillment Support?
At TradeSpace, we help export-driven and eCommerce businesses scale without the traditional overhead — with flexible warehouse space, pick-and-pack support, and logistics consulting. We're based in Alberta, and we’d love to chat about how we can help your growth goals.
