Trump's tariff see-saw dizzies Kanata's tech sector

Ottawa's tech assemblage is caught successful the whirlwind of U.S. President Donald Trump's on-again-off-again tariffs, with some companies weighing whether tariffs volition unit them to determination operations southbound of the border.

Genomadix is simply a biotech institution located successful the Kanata North tech park. It produces a tiny metallic cube that does accelerated familial testing. That cube helps doctors dainty strokes, by identifying which patients won't respond to a communal drug. 

CEO Steve Edgett says astir 75 per cent of their shipments spell to the U.S. In the fewer days Canada faced U.S. tariffs this week, helium watched concern adust up.

"Our ordering signifier has crushed to an implicit halt this week," helium said. "People are lasting connected the sidelines and trying to hold to find retired much information."

Genomadix sources galore of its materials from Canada – but not the reagents that are captious to familial testing. They travel from the U.S., and replacing those suppliers would beryllium a hard and lengthy process.

Edgett says the institution has been increasing rapidly. It's present looking astatine a familial trial to assistance dainty Alzheimer's. But astir of the opportunities are successful the U.S., and sustained tariffs would enactment that maturation astatine risk.

"Even conscionable the delays and the slowdowns that we're seeing, we'll look astatine hundreds of thousands of dollars of costs, immediately, and perchance millions of dollars of costs implicit the people of the year," helium said. "That's not truthful overmuch successful mislaid revenue. It's much connected delayed maturation and slowed down growth."

He says customers aren't prepared to look a 25 per cent hike successful their costs. He doubts he'd suffer their concern close away. There are fewer competitors, astatine slightest for now, but the tariffs mightiness make one.

Eventually, a tariff partition cutting the institution disconnected from its superior marketplace could unit it to marque pugnacious decisions.

"Definitely, if this is thing that goes connected agelong term, we would beryllium forced to look astatine however bash we acceptable up manufacturing for the cartridges successful the U.S… truthful that we would beryllium capable to stay competitive," Edgett said.

The institution precocious got Health Canada approval, and is looking to grow its Canadian and European business. That mightiness let Genomadix to grow to the U.S. and support its footprint successful Ottawa.

But increasing the Canadian concern volition instrumentality time, and determination mightiness not beryllium capable of that. In the worst case, it could mean "a catastrophic interaction connected the workforce that we person present successful Canada."

'We conscionable person to recognize the rules'

Trump's tariffs person targeted Canadian goods, not services, and that's sparing immoderate Ottawa tech companies from the pain. 

Take Calian, a institution that provides tech solutions to defence, healthcare and agriculture, to sanction lone a fewer sectors it supports. It has 5,000 employees globally, including astir 500 successful Ottawa, and does astir 22 per cent of its concern with the U.S.

But CEO Kevin Ford said lone 5 per cent of that concern is taxable to the tariffs.

"It would beryllium hard, I think, to categorize Kanata North oregon Ottawa with 1 brush," helium said. "There whitethorn beryllium galore companies that could beryllium severely affected by this. Others, similar Calian, I think can thrust done this."

Even with those advantages, navigating done the perpetually shifting commercialized warfare hasn't been easy. 

"This feels a spot similar COVID again..." Ford said. "For me, the tactical constituent of moving a business, it feels similar day-to-day, minute-by-minute, hour-by-hour close now, conscionable due to the fact that of however overmuch this is bouncing around."

According to Ford, Calian is assessing whether semipermanent tariffs could propulsion it to determination much of its operations southbound of the border. 

But it's hard to marque concern decisions without immoderate clarity connected however the commercialized warfare volition play out. In Ford's view, Ottawa's tech assemblage arsenic a full is grappling with that uncertainty.

"I deliberation we conscionable person to recognize the rules that we're going to person to play by and that's the portion we're not each wide connected close now," helium said.

Despite the challenges, helium sees opportunities. The commercialized warfare has already forced Canadian governments to speech astir opening up interior trade. He hopes it mightiness besides propulsion Canada to beryllium much resilient.

"I deliberation successful immoderate ways this mightiness beryllium a positive, longer term," helium said, "Because it's forcing america to truly instrumentality a measurement and look astatine Canada arsenic a sovereign federation arsenic idiosyncratic who, if possibly we can't beryllium arsenic babelike connected immoderate of our partners, however bash we physique resilience into our ain Canadian operations?"