By helloDarwin
February 20, 2025
Exporting in 2025: Business Strategy, Tariffs, and Financial Aid
In a constantly evolving global economic context, exporting represents an essential growth lever for Quebec companies. However, political changes, new trade barriers, and digital transformation are complicating access to international markets. In the face of these challenges, it becomes crucial for companies to adopt adapted export strategies, diversify their markets, and optimize their international presence. Moreover, the numerous grant programs offered by the federal and provincial governments help support these initiatives by reducing costs related to market research, compliance, and establishing a presence in new territories. This article explores the current challenges of exporting, the impact of customs tariffs, the importance of market diversification, and winning strategies for succeeding internationally.
Understanding the Challenges of Exporting in 2025
In 2025, Quebec companies operate in an export context marked by major economic and political changes. One of the main challenges lies in the uncertainty related to U.S. trade policies, Canada’s primary economic partner. The imposition of new customs tariffs on key sectors such as aluminum and steel creates trade tensions and forces exporting companies to review their strategies. This situation is reminiscent of the pandemic, during which adaptability and diversification were essential for the survival and growth of companies.
The global economic environment is also influenced by persistent trade imbalances. In 2023, although Canada recorded a trade surplus with the United States, it registered a deficit with other international partners. This reality highlights the importance of further diversifying markets to reduce dependence on the American market and better distribute risks. Fortunately, Canada benefits from trade agreements with several regions of the world—particularly Europe and Asia—offering interesting opportunities for companies ready to explore new territories.
At the same time, digital transformation and new regulatory requirements, especially regarding certifications, force companies to adapt quickly. Competitiveness in international markets is no longer based solely on product quality but also on compliance with local standards, logistics, and optimized commercial strategies.
Rank | Country | Total Exported in 2023 (millions USD) | Category 1 (HS Code) | Category 2 (HS Code) | Other Imported Products |
|---|---|---|---|---|---|
2 | China | 22,599 | Oilseed crops – plants (HS 12) | Ores, slags – ashes (HS 26) | Mineral fuels – oils – bitumen (HS 27); Paper pulp – fibres (HS 47) |
3 | Japan | 11,732 | Mineral fuels – oils – bitumen (HS 27) | Ores – slags – ashes (HS 26) | Oilseed crops – plants (HS 12); Meats and offal (HS 02) |
4 | United Kingdom | 10,502 | Precious stones – precious metals (HS 71) | Mineral fuels – oils – bitumen (HS 27) | Aircraft – aviation parts (HS 88) |
5 | Mexico | 6,563 | Vehicles and their parts (HS 87) | Machines and mechanical appliances (HS 84) | Oilseed crops – plants (HS 12); Meats and offal (HS 02) |
6 | Netherlands | 5,503 | Mineral fuels – oils – bitumen (HS 27) | Ores – slags – ashes (HS 26) | Inorganic chemicals (HS 28) |
7 | Germany | 5,206 | Mineral fuels – oils – bitumen (HS 27) | Ores, slags, ashes (HS 26) | Reactors, machines, mechanical appliances (HS 84) |
8 | South Korea | 5,151 | Mineral fuels – oils – bitumen (HS 27) | Ores – slags – ashes (HS 26) | Meats and offal (HS 02) |
9 | India | 3,811 | Mineral fuels – oils – bitumen (HS 27) | Root vegetables – tubers (HS 07) | Fertilizers (31) |
10 | Hong Kong | 3,606 | Pearls – precious stones – precious metals (HS 71) | Electrical machinery and equipment (HS 85) | Fish – crustaceans – molluscs (HS 03) |
11 | Switzerland | 3,420 | Pearls – precious stones – precious metals (HS 71) | Machines and mechanical appliances (HS 84) | Ores – slags – ashes (HS 26) |
Total: USD 79 billion among these 10 countries, representing 13% of the total exports recorded in Canada in 2023.
To navigate this environment effectively, companies must adopt a proactive approach based on rigorous market research, optimization strategies, and available financial aid. By anticipating these challenges and leveraging emerging opportunities, they can not only secure their presence in existing markets but also open new avenues for international growth.
The Impact of U.S. Customs Tariffs on Quebec Companies
The imposition of new U.S. customs tariffs in 2025 constitutes a major challenge for Quebec exporting companies. These protectionist measures, which particularly affect steel, aluminum, and other strategic sectors, lead to increased costs for Canadian companies and their American trade partners. Indeed, American importers now must bear these additional costs, reducing the competitiveness of Canadian products in the U.S. market.
These new trade barriers force Quebec companies to review their export strategies. Several solutions can be considered to mitigate the impact of these tariffs:
- Optimize relationships with existing partners: Renegotiate commercial agreements to share the additional costs.
- Diversify export markets: Explore opportunities in Europe, Asia, or Latin America thanks to existing trade agreements.
- Review production strategies: Consider the possibility of establishing local operations in the United States to avoid these tariffs.
- Maximize the use of available grants: Take advantage of financial aid to offset adaptation costs.
Despite these challenges, Quebec companies can turn this situation into an opportunity by focusing on innovation, diversification, and strategic management of their exports.
Market Diversification: A Strategic Necessity
In the face of economic uncertainties and new trade barriers, diversifying export markets becomes a strategic necessity for Quebec companies. Historically, Canada has been heavily dependent on the U.S. market, which represents more than 70% of its exports. However, recent protectionist policies in the United States—especially the imposition of customs tariffs on several Canadian products—underscore the importance of reducing this dependence and exploring new international markets.
Trade Agreement | Countries |
|---|---|
Trans-Pacific Partnership (TPP) | Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, Vietnam |
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) | Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam (United Kingdom pending) |
Canada-Chile Free Trade Agreement | Chile |
Canada-Colombia Free Trade Agreement | Colombia |
Canada-Costa Rica Free Trade Agreement | Costa Rica |
Canada-European Free Trade Association (EFTA) Free Trade Agreement | Iceland, Liechtenstein, Norway, Switzerland |
Canada-Honduras Free Trade Agreement | Honduras |
Canada-Israel Free Trade Agreement (CIFTA) | Israel |
Canada-Jordan Free Trade Agreement | Jordan |
Canada-United States-Mexico Agreement (CUSMA) | Mexico, United States |
Canada-Panama Free Trade Agreement | Panama |
Canada-Peru Free Trade Agreement | Peru |
Canada-Republic of Korea Free Trade Agreement (CKFTA) | South Korea |
Canada-Ukraine Free Trade Agreement (CUFTA) | Ukraine |
Canada-UK Trade Continuity Agreement (Canada-UK TCA) | United Kingdom |
Canada benefits from a privileged position due to its many trade agreements with regions like Europe, Asia, and Latin America. These agreements facilitate access to foreign markets by reducing or eliminating certain tariff barriers. However, diversification does not merely mean changing markets—it also involves optimizing commercial strategies in existing markets. For example, a company already exporting to the United States could review its approach by diversifying its distribution channels, developing new partnerships, or establishing a local presence to bypass certain restrictions.
To succeed in this transition, companies must adopt a structured approach in three key steps:
- Market selection and validation: Identify opportunities based on economic, regulatory, and competitive criteria.
- Definition of an export strategy: Develop an adapted business plan that includes distribution channels and growth objectives.
- Implementation and monitoring: Establish local partnerships, maintain strategic oversight, and adapt the offer to the requirements of the targeted market.
Thanks to grant programs such as CanExport and PSCE, Quebec companies can benefit from financial support to facilitate this diversification. By intelligently diversifying their markets, they reduce their exposure to economic risks and maximize long-term growth opportunities.
Optimizing Presence in Existing Markets
In a context where Quebec exporters face increased economic and commercial challenges, optimizing presence in existing markets becomes an essential strategy to maximize opportunities and minimize risks. Rather than immediately turning to new markets, companies can first strengthen their position where they are already established—particularly in the United States, despite the recent customs tariffs.
One initial approach is to strengthen relationships with current partners. Many Canadian companies work with American importers or distributors who are also affected by the new trade policies. Proactive communication and strategic adjustments—such as renegotiating contracts or implementing new pricing models—can help maintain strong trade relationships despite rising costs.
Moreover, diversifying distribution channels can optimize presence in an existing market. A company that primarily sells through distributors might consider increasing its direct online presence or developing a broader range of partnerships. Establishing a local subsidiary in the United States or acquiring a stake in an American company may also be a viable solution to bypass certain tariff restrictions.
Finally, access to grants like CanExport or PSCE allows companies to invest in optimization strategies without adding to their financial burden. By enhancing their presence in current markets, Quebec companies can ensure sustainable growth and secure their competitiveness despite economic uncertainties.
Learn more about the CanExport grant!
Grants and Export Support Programs
Quebec companies wishing to expand internationally can count on several grant and support programs to facilitate their expansion. Exporting involves high costs related to market research, certifications, travel, and commercial strategies. Fortunately, financial aid exists to ease these burdens and maximize the chances of success internationally.
The CanExport SME program, one of the most popular, offers up to $50,000 in grants to cover 50% of eligible expenses related to exploring new markets. Its CanExport Innovation component finances international research and development activities, encouraging companies to establish strategic partnerships to adapt or validate their technologies.
At the provincial level, the Marketing and Export Support Program (PSCE) offers up to $250,000 to help companies structure their export strategies, including hiring specialists or obtaining the necessary certifications to break into new markets. Other sector-specific grants, such as SIAM (for the agri-food sector) and SEB (for food processing), support companies in specific industries, thereby facilitating their entry into international markets.
By combining these different programs and aligning their export strategies with the eligibility criteria, Quebec companies can not only reduce costs but also structure their international expansion effectively. Sound support in researching and optimizing grants helps maximize these opportunities and ensures sustainable growth.
Developing an Effective Export Strategy
To succeed internationally, a company must develop a well-structured export strategy that takes into account the economic, regulatory, and competitive challenges specific to the targeted markets. Such a strategy relies on rigorous planning and an in-depth analysis of opportunities and risks.
The first step is to select and prioritize markets based on economic, regulatory, and logistical criteria. It is essential to evaluate local demand, the presence of competitors, and entry barriers—including necessary certifications and transportation costs. A thorough market study validates these elements and helps adapt the offer accordingly.
Next, establishing an adapted commercial strategy is crucial. This includes defining the mode of distribution (direct sales, distributors, e-commerce), developing a competitive positioning, and outlining an action plan with clear and measurable objectives.
Finally, access to export grants such as CanExport and PSCE can facilitate this approach by financing part of the costs related to international expansion. By adopting a methodical approach and leveraging available resources, Quebec companies can optimize their export efforts and maximize their success in foreign markets.
Market Research and Opportunity Validation
Market research is an essential step for any company wishing to export its products or services. It validates the potential of a target market by analyzing the opportunities and risks related to competition, local regulations, and consumer habits. A company that neglects this step risks investing time and resources in a market that is either unviable or poorly suited to its offer.
Opportunity validation is based on several key criteria:
- Local demand: Is there a real need for the product or service?
- Competition: Who are the main players, and how can the company differentiate itself?
- Entry barriers: What are the applicable regulations, certifications, and taxes?
- Logistical costs: What are the shipping, customs, and distribution fees?
A thorough analysis allows companies to adapt their export strategies and maximize their chances of international success. With a clear vision of the target market, companies can make informed decisions and minimize the risks related to expansion.
Start Your Export Strategy Now
In a rapidly changing global business environment, exporting remains an unmissable opportunity for Quebec companies. However, challenges related to protectionist policies, tariff barriers, and economic transformations require a strategic and proactive approach. Market diversification, optimization of export strategies, and access to available grants are essential levers for ensuring sustainable international growth. By relying on rigorous market research and adapting their strategies to the realities of targeted markets, companies can not only minimize risks but also seize new opportunities and strengthen their competitiveness.
Key Points to Remember:
- The challenges of exporting in 2025: Impact of new trade policies, particularly U.S. customs tariffs.
- The importance of diversification: Reducing dependence on the American market by exploring other territories such as Europe, Asia, or Latin America.
- Optimizing presence in existing markets: Enhancing relationships with current partners, diversifying distribution channels, and considering local establishment.
- Developing an effective export strategy: Prioritizing markets, defining a structured plan, and measuring performance.
- Market research and opportunity validation: Analyzing demand, competition, and entry barriers before investing in a new market.
By adopting a methodical approach and leveraging available resources, Quebec companies can transform the challenges of exporting into real opportunities for growth and success.
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