Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
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Category Archives: Stories
Plaid Raises $575M to Scale Fintech Infrastructure
Financing | April 14, 2025
Image: Freepik
Plaid’s $575 Million Series D Signals a Deeper Strategy in Fintech Data and Embedded AI
Financial infrastructure provider, Plaid, announced on April 3 2025, that they raised $575 million Series D at a valuation of $6.1 billion valuation led by Frank Templeton, BlackRock, Fidelity, and others including existing investors such as NEA and Ribbit Capital. While the valuation is significantly lower than it's 2021 peak of $13.4 billion, Plaid's latest round is a story of consolidation of it's role at the heart of embedded finance, and not of decline.
Plaid is a backbone of embedded finance with a footprint that spans more than 8,000 apps, including many widely used fintech tools and providers in Canada and the U.S. For Canadian fintech companies, this raise hints at where industry is heading and who will control its most critical pipes.
A Profitable Platform in a Tough Market
Unlike most fintech firms still chasing break-even, Plaid finished off 2024 with positive operating margins, strong ash flows and a 25% yoy revenue increase. In Plaid's letter to shareholders, 2025, CEO and Cofounder Zach Perret explained that it has a usage based billing model where Plaid earns revenue when an end user signs-up, takes actions in connected apps, or remains active on a per-user-per-month basis. In a market where profitability is favoured over growth at all costs, these numbers speak volumes.
See: 12 Market Entry Approaches for Fintech Startups
The platform has achieved a core level of recurring annual revenue that allows it to reinvest confidentially in areas like AI powered fraud prevention and data-science enhanced credit scoring.
“Our core business has consistently grown double digits year-over-year despite 2022 and 2023 being the worst slowdown in fintech in the last two decades.”
Plaid's shareholder letter also reports that over 50% of Americans with a bank account have used the platform, either directly or through partner apps. Its customers include enterprise players like Affirm, Chime, Robinhood, SoFi, Citi, and H&R Block, plus thousands of fintech startups globally.
“Our products are the bedrock upon which many of the most well-known financial brands are built.”
Strategic Round
Unlike past funding frenzies, this round was strategic, institutional, and about positioning control over the infrastructure of financial data, an area about to be transformed by AI and embedded finance.
In the past few years, Plaid has transformed itself from a bank linking utility into an infrastructure platform with multiple tools, such as alternative credit data, anti-fraud solutions, and bank payments infrastructure. CEO Perret explained that "New products represented >20% of ARR in 2024, compounding at 93% annually.” So it's no longer just about the interface, the tools and stack is consolidating into robust infrastructure.
See: Why No Code AI Agents Matter for Fintech in Canada
A large portion of the funds are being allocated to convert restricted stock units (RSUs) into shares to provide liquidity for long term employees and retention strategy for talent. The rest of the funding will continue to support product development powered by data science, machine learning, and AI.
The Open Banking Delay That’s Costing Canada
Plaid’s expanding capabilities also highlight Canada’s open banking delays. Canada is expected to implement open banking in 2026, but it doesn't have it yet, despite Finance Canada researching it and promising its implementation for years.
Without a formal framework in place, Canadian fintechs must rely on third-party data aggregators like Plaid to access banking information, including firms like Wealthsimple and KOHO. While using Plaid's banking access tools enables fintechs to get up and running quickly and innovate in the short term, it places critical infrastructure in the hands of foreign companies, raising concerns about data sovereignty and long term competitive capacity.
See: The Crisis Canada and Fintech Can’t Afford to Waste
Daniel Eberhard, CEO of Koho to the House of Commons Standing Committee on Finance:
“In Canada, we do not have open banking. Every time we need to interact with the incumbent financial system, we’re forced to build workarounds.”
Closing Outlook
Plaid's $537 million strategic series D signals a consolidation of fintech infrastructure. Capital is becoming more selective and innovation is leading towards AI and embedded services, so the companies that control the access to data and financial infrastructure are gaining strategic ground. Canadian fintechs and policymakers of open banking in Canada should be watching developments closely to ensure Canada can remain competitive and not overly reliant on U.S. infrastructure.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Data Shows Tariffs Are Threatening Early Stage Innovation
Funding | April 10, 2025
Image: Freepik/rawpixel.com
Regulation Crowdfunding Markets Show Tariffs Straining Innovation Economy
Regulation Crowdfunding (RegCF) has proven to be a resilient market for early stage entrepreneurs and investors alike. When uncertainty strikes, it's often traditional venture capital that pulls back, while the community-driven model continues to offer early stage start-ups access to capital allowing them to innovate. However, just in from Sherwood (Woodie) Neiss, NCFA Advisor and Principal at Crowdfund Capital Advisors, data shows that tariffs are starting to strain RegCF markets - from March 10 to April 9, 2025:
- RegCF investment volumes declined by 24% (yoy) to just $57.48 million
- New campaign launches dropped over 40%
- Number of investor checks also declined by 15%
- Average capital raise size dropped to $720,000 (from $1.2 million)
Sherwood Neiss, Principal at Crowdfund Capital Advisors:
“We’re seeing the first real signs of pullback in what has otherwise been a resilient funding ecosystem. The numbers tell a story not of panic, but of pause. Investors and issuers alike are waiting for clarity—on costs, on policy, and on risk.”
Tariffs Introduce New Risks for Early-Stage Companies
In a volatile environment where U.S. tariffs are levied one day, and then paused the next, founders must now face new due diligence questions about supply chains, production costs, and their ability to manage sourcing.
See: Trump’s Tariff Pause Leaves Canada in the Cold
Image: Drop in Issuer Sentiment March 10 April 9, 2025 (Crowdfund Capital Advisors)
These aren't just theoretical risks because many start-ups, particular in hardware devices, consumer goods, and any sector relying on international parts and components are now exposed to volatility and surcharge taxes. Investor confidence is taking a major hit too, and early stage businesses run the risk of stalling or failing before they can scale.
“Tariffs may help some sectors, but they’re also putting early-stage companies under pressure at the exact moment they need capital the most. Many startups don’t yet have the scale to absorb these shocks. And without sufficient investor support, we risk losing not just companies, but jobs and innovation.”
Startups and Innovation Under Pressure
The adverse impact that tariffs have on innovators is especially acute in underserved and rural markets. These regions rely on RegCF since institutional capital remains scare. Retail investors are pulling back their investment participation in RegCF campaigns because of inflationary pressures and wage and job concerns.
See: CCA Report: State of Investment Crowdfunding 2025
Although digital native startups, such as software companies with lower capital requirements and no physical supply chains are more resilient in the current environment, the overall market uncertainty that tariffs have made investors more selective while pushing out campaign timelines.
Without policy intervention or more clarity, the negative implications of tariffs on RegCF markets may be severe, with fewer companies launched, fewer jobs, and reduced momentum for tech and manufacturing innovation across North America.
“This is a moment for policymakers, platforms, and investors to pay attention. We don’t need alarm, we need alignment. Investment Crowdfunding has been a powerful tool for democratizing capital. But it can’t thrive in a vacuum of uncertainty.”
Why It Matters
Public markets react quickly to interest rates or geopolitical shocks but RegCF is slower and more telling, as it signals what's happening on the ground.
See: Trump’s April 2025 Tariffs and What They Mean for Canada
Tariffs are elevating uncertainty risks related to cost structures, and its hurting investor sentiment. When early stage capital pulls back at grass roots levels, it hurts the innovation economy and the real cost is future growth.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Trump’s Tariff Pause Leaves Canada in the Cold
Economy | April 10, 2025
Image: Freepik/tawatchai07
Trump Temporarily Halts Tariffs for Most Countries But Keeps Pressure on Canada, Mexico, and China
On April 10, 2025, President Trump announced a 90-day pause on most of the newly implemented global trade tariffs after market backlash and political pressure. The break was extended to countries in Europe, Asia, and parts of South America, but Canada, Mexico, and China are still under tariff pressure.
Strategic Pause, Not for Everyone
While Trump paused the most recent tariffs for over 75 countries, U.S. tariffs still apply to Canada and Mexico primarily on cars and auto parts (25%), steel (25%), aluminum (10%), and some agricultural products like dairy, grains, and processed foods, and continue to affect cross border trade in manufacturing and farming sectors.
Trump's pause also didn't apply to China In fact, Tariffs on Chinese good were raised to 125%, as China hit back with an 84% tariff on U.S. goods and filed new complaints with the World Trade Organization.
See: Klarna Delays IPO As Markets React to Trump’s Tariffs
After the tariff pause was announced, markets surged with the S&P 500 exploding 9.5%, the largest one day gain since World War II, according to Business Insider.
But the rebound didn't last long, as markets opened the following morning on April 10, the S&P 500 dropped 2.3% out of the gate and is continuing its slide currently down 5%.
Timing of the Pause Raises Eyebrows
Right before the tariff pause was announced, Trump posted on social media telling people “THIS IS A GREAT TIME TO BUY!!! DJT.” The DJT trading symbol referenced his Trump Media & Technology Group company. Hours later, markets soared. Some U.S. lawmakers are questioning whether Trump or anyone close to him benefited financially from his announcement (aka insider trading).
According to TIME, Senator Adam Schiff has called for an investigation, asking the White House to hand over records to see if anyone used that information to trade stocks before the news went public.
Innovation Caught in the Crossfire
Tariffs aren't just about physical goods. Canada’s fintech firms, software exporters, and digital infrastructure providers also face risks, as many of these companies work closely with U.S. partners, investors, and regulators. Every barrier, whether its through tariffs, compliance hurdles or market uncertainty and confidence, slows down innovation, especially in the most innovative emerging sectors like AI, open banking, blockchain and embedded finance.
See: Five Ways Countries Are Responding to Trump’s Tariffs
Early stage startups are especially exposed, as any cross border collaborations, capital raises, and pilot projects face second thoughts and/or delays from U.S. partners.
What’s next?
Expect heightened volatility to continue. Canadian companies need to stay alert, continue to diversify trade relationships, and build a stronger domestic economy and ecosystem that reduces exposure to abrupt, off the cuff U.S. policy changes impacting trade and relationships.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Waymo Plans to Train AI Using In-Car Camera Footage
Privacy | April 7, 2025
Image: Freepik
Waymo’s In-car Data Plans Echo Orwell's 1984
As featured in TechCrunch, autonomous robotaxi firm Waymo is reportedly preparing to use in-car video data recordings of its identifiable passengers to train AI systems. Apparently, a researcher uncovered a 'draft privacy policy' that raises red flags, suggesting that users would not be directly notified or prompted to opt in. Call it ambient surveillance, or outright overreach but this invisible, continuous breach and approach to privacy is becoming normalized and embedded into business models of modern tech.
See: Ensuring Data Privacy in AI-Driven ID Scanning: Balancing Innovation and Compliance
Waymo clarified later that the feature is still work-in-progress but when companies at the cutting edge of mobility, fintech, and smart infrastructure, treat the public like collateral damage, it's time for people to stand up and push back against being a character right out of George Orwell's 1984 - that's right, Big Brother.
Surveillance Is No Longer Just About Security
Grocery stores are using facial recognition to monitor stores and shoppers behaviour, or how about surveillance and sensors at cashierless stores. Banks are using keystroke tracking to monitor employees.
Surveillance used to be about security but it's evolved into consumer experiences, services design, and product optimization. People now enter physical or digital spaces without even knowing whether their voice, face, movement or even tone is being tracked and analyzed for analytics or AI training. It's a slippery slope and can erode consumer trust, especially if it breaks a core fintech and digital innovation principle based on 'permission'.
Surveillance Free Zones?
These would be places or environments where surveillance monitoring simply isn't allowed or doesn't happen. These zones would offer privacy and a break from that feeling of being watched, studied, analyzed.
See: Major Data Breach @Finastra and Canadian Banks?
To some degree we have these private spaces in our lives today, at our home, or safe space but what if your favourite financial app disabled behavioural tracking by default and that was a differentiator in their business model where privacy, trust, transparency and customer empowerment are core to long term adoption and growth of a product or service.
Consent Needs a Redesign and Value Prop
Surveillance free experiences can built trust and help companies differentiate but the real opportunity is in redefining what it means to people who opt in.
Today the act of opting into an activity is a 'legal gate' where if a user clicks and 'agrees' to move forward then they have allowed it. What about a different model based around value, so if a user provides consent then they actively allow it but in exchange they want something of value in return.
The obvious value exchange is monetary where if someone's data is helping train a commercial AI model then that person's data could generate a tangible return, such as revenue sharing, or some type of platform equity, or a Web3 environment that tracks your data flows and offers tokenized compensation tied to impact and usage.
See: US Financial Surveillance Report Shows Privacy in Crisis
Another value exchange driver could be utility. Where sharing behavioural data leads to a better outcome, such as improved fraud protection, more accurate credit scoring, optimized financial coaching etc. In this way, users see the benefit clearly, and they should have the option to participate or not.
Some users may be motivated by purpose. Canadians for example may show a willingness to share data if it serves the public good, such as improved healthcare models, smarter urban planning, or inclusive innovation.
Any form of consent must put users in the driver's seat and allow them to control their participation. They need to be able to see and understand how their data is going to be used, for how long and in what ways, and have the option to revoke it. Any approach that's going to work in support of long term adoption will need to put participants at the forefront and treat them as humans, not data sources.
Canada Can Lead on Privacy Innovation
Waymo’s plan whether it comes to fruition or not, highlights how easily surveillance can be baked into a future services - literally in a legal and privacy document that most users will not read. Even companies with strong brand trust are drifting towards this world of data collection by default. That's why surveillance, privacy and consent matters.
See: Balancing AI Automation and Ethics in Fintech
Canada seemingly has the tools, policy infrastructure, and appreciation for leading privacy first innovation. There's a growing public awareness and need for privacy updates at the national level per the work being done on the Artificial Intelligence and Data Act. Perhaps regulation will only go so far and businesses will drive the privacy momentum.
Trust is a core input of innovation, and those that prioritize people, not just data, will lead it.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Support NCFA by Following us on Twitter!Follow @NCFACanada |
The Intersection of Fintech and Real Estate: How Innovation is Rebuilding the Foundation of Property Transactions
Fintech and Real Estate | April 9, 2025
Image: Freepik/Gray StudioPro
Real Estate in Canada is Undergoing a Once-in-a-Generation Transformation
Historically, property transactions have been paper-based, opaque, and slow-moving—anchored in legacy systems and entrenched commission structures. For many buyers, sellers, and investors, the process has been expensive, inefficient, and largely inaccessible without insider knowledge or substantial capital.
But now, a convergence is taking place. Financial technology or fintech, is entering the real estate arena with the force of a disruptor. It is changing how properties are financed, purchased, invested in, and even owned. From blockchain-powered land registries to crowdfunding platforms democratizing investment, fintech is not just modernizing real estate, it’s fundamentally reshaping the experience.
This article explores the key dimensions of that shift, with detailed examples from the Canadian landscape.
1. Fintech and Mortgages: From Bank Branches to Browser Tabs
One of the earliest and most visible disruptions has been in the mortgage process.
Traditionally, Canadians had little choice but to go through banks or mortgage brokers, spending days gathering paperwork, weeks waiting for approvals, and often ending up with rates and terms that weren't transparent. This model particularly disadvantaged self-employed individuals, gig workers, immigrants with thin credit files, and first-time buyers unfamiliar with the process.
Enter digital mortgage lenders like Nesto, Pine, and Breezeful fintech platforms that allow buyers to:
- Compare mortgage products instantly
- Apply entirely online
- Use real-time data for faster approvals
- Track application status through digital dashboards
These platforms utilize algorithmic underwriting and open banking data to provide accurate, competitive loan offers without the red tape. Some even incorporate AI-based income verification tools to reduce friction in the approval process.
The implications go beyond convenience. By cutting out intermediaries and leveraging automation, fintech lenders can reduce borrowing costs, improve transparency, and expand access to homeownership, particularly in overheated markets where timing is everything.
2. Blockchain in Real Estate: Making Trust Programmable
Fintech’s impact on real estate is not limited to financing, it’s also revolutionizing ownership and transaction infrastructure, thanks to blockchain.
Canada’s real estate system, like many others, relies on centralized databases to store land titles and transaction histories. These systems are vulnerable to fraud, clerical errors, and inefficiencies that slow down closings and inflate legal costs.
Blockchain-based solutions address these pain points by:
- Creating tamper-proof, transparent property records
- Enabling instant title verification
- Supporting smart contracts that execute automatically when conditions are met
- Reducing the need for costly intermediaries in sales, escrow, and compliance
One particularly promising area is real estate tokenization—the fractional ownership of properties through blockchain. In this model, a physical property is divided into digital tokens, each representing a share of the asset. These tokens can be bought, sold, or traded, allowing for real estate investment with far smaller capital outlays.
While adoption in Canada is still emerging, global case studies are piling up, and regulators are beginning to take notice. If implemented thoughtfully, this could transform real estate into a liquid asset class—blurring the line between traditional property and modern securities.
Further reading: https://ncfacanada.org/real-world-implementation-of-real-estate-tokenization/
3. Crowdfunding Real Estate: Investing Beyond the 1%
For generations, real estate investment was the domain of high-net-worth individuals and institutional players. Minimum buy-ins were high. Risk was difficult to diversify. And average Canadians were shut out of the gains.
But thanks to crowdfunding platforms, the investing model has cracked wide open.
In Canada, real estate crowdfunding enables retail or accredited investors to pool capital and invest in development projects, income properties, or fix-and-flip deals. Some platforms target commercial and industrial builds, while others focus on suburban housing or mixed-use developments.
Key benefits include:
- Lower entry costs – Some platforms start as low as $1,000
- Geographic diversification – Invest across provinces or asset types
- Passive returns – No need to manage the property
- Transparent reporting – Real-time access to project metrics
This model empowers investors to participate in markets like the GTA or Vancouver—areas where direct ownership is often out of reach. It also provides developers with new channels of capital, reducing their reliance on traditional banks.
Explore more: https://ncfacanada.org/game-changers-crowdfunding-real-estate-projects-in-the-gta/
4. Legal Disruption: When Innovation Meets Resistance
Fintech is built on disruption, but disruption often invites legal scrutiny. And nowhere is that tension more evident than in Canada’s current reexamination of real estate commission structures.
A significant class action lawsuit has been launched against major brokerages and national associations. The core allegation? That sellers are being compelled to offer fixed buyer-side commissions, typically 2.5%, as a condition of listing on MLS® systems, creating an artificially inflated and anti-competitive fee structure.
The lawsuit, if successful, could:
- Challenge the norm of seller-funded buyer agent commissions
- Pave the way for à la carte pricing models or flat-fee services
- Expand consumer choice and lower transaction costs
- Encourage tech-based platforms to gain market share
This legal movement mirrors what Fintech has done in banking: remove information asymmetry, expose markup practices, and return control to consumers.
5. Thematic Alignment: Fintech’s Core Principles Reshaping Real Estate
The reason fintech fits so well within real estate is because the values align.
- Transparency: Whether it's a blockchain title or digital mortgage pre-approval, fintech removes opacity.
- Access: Crowdfunding and tokenization open doors that were previously closed to small investors.
- Speed: From instant mortgage quotes to smart contracts, deals are closing faster than ever.
- Cost-efficiency: Whether through flat-fee agents or reduced bank reliance, costs are coming down.
- Control: Consumers get more power over their choices, from financing to property selection.
In many ways, the next frontier for fintech isn’t payments or crypto—it’s property.
Conclusion: A New Foundation Is Being Poured
What was once an industry slow to change is now at the edge of a digital overhaul. Fintech didn’t just improve real estate—it challenged its core assumptions: that buying a home needs to be slow, that investing requires wealth, and that commissions are non-negotiable.
This convergence is building a new foundation—one where buyers close faster, sellers keep more, and investors participate more broadly.
The blueprint is changing. And we’re only at the ground floor.
Further Reading
- NCFA homepage – general fintech, crowdfunding & innovation
https://ncfacanada.org/ - Real-world implementation of real estate tokenization
https://ncfacanada.org/real-world-implementation-of-real-estate-tokenization/ - Game changers: Crowdfunding real estate projects in the GTA
https://ncfacanada.org/game-changers-crowdfunding-real-estate-projects-in-the-gta/ - How proptech is changing the real estate industry
https://ncfacanada.org/how-proptech-is-changing-the-real-estate-industry/ - Real estate crowdfunding: Advice for investors
https://ncfacanada.org/real-estate-crowdfunding-advice-for-investors/ - Real estate investment in cryptocurrency: Risks and opportunities
https://ncfacanada.org/real-estate-investment-in-cryptocurrency-risks-and-opportunities/ - Fintech card space is growing – overview of fintech expansion
https://ncfacanada.org/fintech-card-space-is-growing-brim-financial-float-caary-capital-jeeves-neo-financial/ - PropertyMesh: Class action lawsuit against Canadian brokerages
https://propertymesh.ca/canadas-largest-real-estate-lawsuit/
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Support NCFA by Following us on Twitter!Follow @NCFACanada |
Five Ways Countries Are Responding to Trump’s Tariffs
Tariffs | April 3, 2025
Image: Freepik/rawpixel.com
How Countries Are Responding to Trump’s Tariffs And What Happens Next
On April 2, U.S. President Donald Trump introduced a massive set of new import tariffs. Starting April 5, a universal 10% tariff will apply to all imports coming into the U.S. Additionally, certain countries that the administration considers to have unfair trade practices with the U.S. will face even higher tariffs, between 20% - 49%.
See: Trump’s April 2025 Tariffs and What They Mean for Canada
Canada and Mexico were spared this tariff round but they’re still dealing with a separate 25% tariff that was put in place back in March, which were linked to concerns about fentanyl and border issues. In response, Canada has now fired back with its own 25% tariff on U.S. vehicles that don’t meet USMCA rules (applies to $35.6 billion CAD of imports). This is no longer political jockeying.
So what are other countries doing in response? And how might this play out?
Five Ways Countries Are Responding
Several countries have already responded to the wide sweeping tariffs albeit in noticeably different ways (and strategies):
1. Outright rejection - China (54% tariffs) strongly condemned the move, demanding that they 'immediately cancel' the tariffs. Beijing warned of major disruption to global supply chains and didn't rule out retaliation. April 4 update: China responds to Trump's trade war, China's Finance Minster, "For all imported goods originating from the US, an additional tariff of 34% on top of the current applicable tariff rate will be imposed."China will also escalate restrictions on exporting 'rare earth' minerals to the U.S. Markets plunge further.
2. Warning with possible retaliation - The European Union (20% tariffs) said it would respond in a "legitimate, proportionate and decisive" way.
3. Diplomatic concern, open to talks - Japan (24%), India (26%), Taiwan (32%), and Thailand (36%) expressed concern but stressed willingness to work with the U.S. to find solutions. These responders look to want to preserve economic ties.
See: Digital Export Trends and Global Trade Fintech Opportunities
4. Disappointed but remaining calm - The UK (10%) and Australia (10%) criticized the tariffs as unfriendly and unhelpful but said they would not retaliate. Both are preparing for possible economic fallout while exploring alternative trade options.
5. Direct countermeasures or defensive policies - Canada (sector specific 10-25%) and South Korea (25%) have already taken concrete steps. Canada introduced a matching 25% auto tariff and has announced support for affected sectors. South Korea rolled out emergency support measures for affected industries.
The varying responses highlight how different countries are balancing their economic exposure to the U.S., combining political pressure and long term trade strategies.
How This Could Play Out
We anticipate short term volatility, retaliation, legal/political challenges, shifting supply chains and inflationary pressures:
- Stock markets have already negatively responded to the news, and businesses are scrambling to assess how the tariffs will hit their supply chains and costs, especially key sectors likely to be disrupted such as autos, tech, agriculture, and retail.
- With Canada already retaliating and the EU hinting the same, we may see a global trade war spiral deeper, inflation and recessionary pressures.
- Trump used emergency powers under the IEEPA to enact these tariffs without Congress. That may face court challenges, including push back from within their own party. Meanwhile, allies are lobbying behind the scenes for exemptions.
- Countries may move quickly to find new trade partners and diversify supply chains. Canada is already accelerating trade talks with Europe and Asia and rolling out support for local exporters.
See: Resources for Canadian Resiliency and Competitiveness
- U.S. businesses and consumers may absorb the tariff costs, not foreign exporters. This could push up prices on many goods (and make it harder for central banks to set interest rates). Canadian sectors like auto parts, energy, and food could feel indirect pressure from global realignments.
Conclusion
The April 2 tariffs are just the start. Countries are reacting in their own ways, and the situation is still developing. Canadian fintechs should prepare for uncertainty, but also for opportunity.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Support NCFA by Following us on Twitter!Follow @NCFACanada |
Trump’s April 2025 Tariffs and What They Mean for Canada
Tariffs | April 3, 2025
Image: Freepik AI
Trump's Tariffs Shake Global Trade — Canada Exempt But Still at Risk
On April 2 2025, President Trump announced a massive shift in U.S. trade policy with a litany of universal and country specific tariffs that will affect global trade flows. He declared a 'national emergency' over the U.S. trade deficit, and said that it was a threat to America's national security. The U.S. will now apply tariffs (essentially a tax) on all imports entering the country. While Canada and Mexico were exempt from this round of April 2 'liberation day tariffs', Prime Minister Mark Carney vowed to push back against the existing tariffs currently applied to Canada.
See: What Fintechs Need to Know About New U.S. Tariffs
Uncertainty of global trade has hit global stock markets hard, with broad indexes declining 4%, as investors flee to safe assets. Investors are expecting higher input costs, slower global trade growth and escalating retaliation from affected countries.
President Trump said:
“Our country has been looted by nations near and far. Now it’s our turn to prosper... and use trillions to pay down our debt.”
What Was Announced
- A 10% universal tariff on ALL imports to take effect April 5, 2025.
- Countries deemed to have 'unfair' trade practices with the U.S. will have country specific higher tariffs that will take effect April 9, 2025.
- The tariff rates were calculated based on formal existing tariffs plus “non-tariff barriers” like regulatory restrictions, and then halved.
- A separate executive order on April 2 was signed that removes the “de minimis” exemption for shipments under $800 from China and Taiwan to take effect May 2, 2025. This directly affects platforms like SHEIN and Temu.
- Notably some countries like Russia, North Korea, Cuba and Belarus are exempt from this round of tariffs too, with the administration explaining that they are already facing high tariffs and imposed sanctions which effectively eliminates meaningful trade with those countries.
See this CTV news post for the full list of tariffs by country
| Country | Tariff Rate |
| Cambodia | 49% |
| Vietnam | 46% |
| Sri Lanka | 44% |
| Bangladesh | 37% |
| China | 34%+20% |
| Taiwan | 32% |
| Indonesia | 32% |
| Switzerland | 31% |
| South Africa | 30% |
| Pakistan | 29% |
| India | 26% |
| South Korea | 25% |
| Japan | 24% |
| European Union | 20% |
| Thailand | 36% |
| United Kingdom | 10% |
Exemptions and Overlaps
Canada and Mexico are currently exempt from the new April 2 country-specific and universal tariffs, ONLY if goods qualify under the United States-Mexico-Canada Agreement (USMCA) rules of origin.
However, Canada already faces a separate 25% tariff that was imposed in March 2025 on a broad set of goods and linked to fentanyl enforcement and immigration/border disputes. The 25% tariffs have been partially suspended but not entirely repealed - see White House fact sheet.
Sector-specific tariffs on Canada that were previously announced, such as those on steel, aluminum, autos (starting April 4), copper, and semiconductors, are not cumulative with the April 2 tariffs.
🇨🇦 Canada’s Response “We Will Fight Back”
While some products are still protected under USMCA, other key Canadian exports, such as raw materials, energy products, and manufactured goods — remain vulnerable. PM Mark Carney made it clear that Canada will retaliate "with purpose and force".
Ottawa's game plan includes preparing a set of counter-tariffs, providing emergency support for exporters, accelerate trade talks with Asia-Pacific and the EU, and incentivize domestic production and supply chain innovation (remove interprovincial trade barriers).
Update: Canada Matches U.S. Auto Tariff with 25% Countermeasure - PM Mark Carney announced today that Canada will implement a reciprocal 25% tariff on U.S. vehicles that do not comply with the Canada-United States-Mexico Agreement (CUSMA) to protect Canada's auto sector and its workforce. The new levies will apply to $35.6 billion CAD of imports.
What It Means for Canadian Fintech and SMEs
Broad sweeping tariffs will ignite a trade war and is a risk event for Canadian businesses. Small to medium sized businesses (SMEs) will find it difficult to absorb cost hikes and delays in exporting to America.
See: Canada and Trump Risk Index What Fintechs Need to Know
Fintech platforms in cross-border payments, lending, and logistics can offer supply chain risk and trade compliance tools. E-commerce platforms could see many global vendors move away from U.S-centric trade models.
Looking Ahead
Although Canada avoided the pain of the April 2 tariffs, the risks aren't gone. With a global trade war not afoot, supply chains will shift and Canada will feel the effects either directly or indirectly. Carney's call for a 'new economy' may go beyond just a response and become Canada's national strategy going forward. Brace for volatility and opportunity at the same time.
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