The looming threat of tariffs under a potential Trump administration is yet another reminder that Canada’s hardware and semiconductor industries remain dangerously dependent on global supply chains. While companies like FTEX and Ranovus are working to navigate these economic shifts, the bigger issue here is that Canada lacks a strong, coherent strategy to protect and grow its own tech sector. Without one, we risk losing both innovation and investment to countries that are more aggressive in shielding their industries.
It’s clear that tariffs, whether imposed by the U.S. or as part of Canada’s retaliation, won’t just affect manufacturers—they’ll have a ripple effect throughout the supply chain. If the cost of production rises for Canadian companies, they either have to absorb the losses or pass them on to consumers. Either way, they become less competitive against Asian manufacturers who operate in regions with fewer trade barriers. As FTEX’s Ramee Mossa pointed out, price hikes could push consumers away from sustainable transportation options like e-bikes and back toward cars, which is a step backward in more ways than one.
Some argue that Canada should simply invest in its own semiconductor and hardware manufacturing, but that’s easier said than done. Building chip fabrication plants takes decades, not years, and requires billions in investment. Taiwan’s dominance in semiconductor production didn’t happen overnight—it was the result of long-term, government-backed planning that Canada simply hasn’t committed to.
This is where the real issue lies: Canada’s lack of a national semiconductor strategy. Without a clear vision, companies like Ranovus are left scrambling for ways to maintain their operations amid shifting global policies. And while the government might be hesitant to intervene with protectionist measures, the reality is that other countries—including the U.S. and China—are already doing just that. If Canada doesn’t step up, its homegrown innovation will be forced elsewhere.
It’s time for Canada to take action. That means investing in domestic manufacturing where possible, implementing policies that support local tech companies, and ensuring that businesses relying on global supply chains aren’t left at a disadvantage. Otherwise, we’ll keep watching Canadian innovation slip away to other countries that actually have a plan.
