Ontario Construction News staff writer
A few Canadian cities are leading the country’s effort to expand trade beyond the United States in 2025, while many others are finding it tough, according to a recent report from the Canadian Chamber of Commerce.
The report highlights Calgary, Ottawa-Gatineau, Toronto, Saskatoon, and Kelowna, B. C. as having the highest growth in exports to markets outside the U. S. last year. Calgary and Ottawa-Gatineau saw the biggest jumps in exports away from the U. S., with increases of 65 per cent and 64 per cent respectively.
Toronto experienced a 32.8 per cent rise in non-U. S. exports; Saskatoon had gains of 32 per cent, while Kelowna reported a growth of 28.6 per cent. Overall, exports to regions outside the U. S. rose by 16.8 per cent nationwide.
“Canada’s trade relationship with the United States will always matter deeply, but this research shows us that resilience increasingly depends on our ability to diversify,” said Candace Laing, President and CEO of the Canadian Chamber of Commerce. “Some Canadian cities are adapting quickly to this era of repeated global economic shocks, while others remain highly exposed to U. S. policy and demand uncertainty. Canada does not just need more trade – it needs more traders.
“The challenge now is ensuring more businesses and communities have the tools, agency and confidence to break out of the ‘domestic comfort trap’ and compete globally by better understanding where demand for Canadian goods and services already exists.”
Findings indicate that many areas in Canada have yet to enjoy similar advantages. Manufacturing hubs in Ontario continue to struggle with weaker trade performance and limited success in diversifying their export markets.
“Small to medium-sized businesses make up 99% of all businesses, and their ability to connect globally is key for our economic diversification strategy,” said Matthew Holmes, Executive Vice President and Chief of Public Policy at the Canadian Chamber of Commerce. “To enhance our trading capacity, data shows there’s a growing gap between cities successfully expanding into global markets versus those still relying heavily on one trading partner. In today’s climate, diversification is increasingly essential.”
The report states that “some cities are successfully expanding into global markets and building more diversified export bases while others remain more exposed to U. S. demand, trade disruptions and policy uncertainty.”
A previous chamber report released last year identified Calgary, Saint John, N. B., and Windsor, Ont., as being among those most vulnerable to U. S. tariffs. Meanwhile, other cities like Victoria and Halifax were seen as less exposed due to stronger trade connections with Asia and Europe.
“A year later, that exposure seems reflected in local economic outcomes although it didn’t exactly match our expectations regarding who might be hardest hit,” noted the new report. “As anticipated, Canadian cities with greater exposure to U. S. trade are experiencing more local economic stress.”
The federal government has set an ambitious goal of doubling non-U. S. exports over the next decade. According to this spring’s economic update, goods and services exports beyond U. S borders increased by $33 billion in 2025 compared with last year.
While there was a significant jump in non-U. S exports from 2024 to 2025 much of this came from existing exporters moving into new markets rather than fresh entrants joining global trade efforts. The number of Canadian companies exporting beyond North America grew by only six percent year over year.
“While fewer businesses report taking no action compared to last year relatively few are actively diversifying sales or suppliers outside the U. S,” stated the report.“Instead firms seem more likely focused on raising prices increasing domestic sourcing or putting expansion plans on hold,” cautioning that many companies still appear hopeful for stability in Canada-U. S. trade conditions.
However, the Chamber’s findings suggest that trading conditions will likely stay volatile uneven depending greatly on companies’ locations products offered , and reliance upon one single export market.
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