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Are Tariffs Why Canadian Businesses Move to the U.S.?

Podcast posted on by Evelyn Ackah in Business Immigration to Canada, Business Immigration Law, Cross Border Business, U.S. Immigration and Business Visitor B-1 and B-2 Visas

Are Tariffs Why Canadian Businesses Move to the U.S.?

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Canadian businesses are feeling the pressure. Tariffs are climbing, profits are shrinking, and cross-border trade feels more like a maze than a highway. 

If you're running a company in Canada, you're probably asking the same question bold leaders across the country are asking right now — Is it time to make a move?

More and more Canadian businesses are moving to the U.S. not just to survive tariff hikes, but to scale, grow, and finally break free from unpredictable trade policies. This isn't about giving up on Canada, but stepping into a bigger arena with fewer barriers, lower costs, and new opportunities on every corner.

If you're thinking big, you're already halfway there. Here's what you need to know.

Tariffs Are Squeezing Your Profits

You probably don't need another headline to tell you that tariffs are hurting your bottom line. If you're exporting to the U.S., you're already feeling it with every invoice, every shipment, every margin call. 

Unfortunately, it doesn’t look like it’s a temporary measure, but a structural shift that's making it harder to compete, grow, and plan for the future.

In February 2025, the U.S. imposed a 25% tariff on nearly all Canadian imports, sparing only energy products, which were hit with a 10% duty. 

Canada responded with its own 25% tariffs on almost $30 billion worth of U.S. goods, including steel, aluminum, and a wide range of consumer products.

And it's not over. The White House may explore new legal avenues to reimpose or expand tariffs, including sector-specific duties on lumber, semiconductors, and pharmaceuticals.

For Canadian businesses, especially small and medium businesses that make up 97% of exporters to the U.S., this means higher costs, disrupted supply chains, and shrinking margins.

If you're absorbing these costs just to stay afloat, you don't have to play defense forever. There’s a smarter way to move forward, and it starts with rethinking where you do business.

Why Canadian Businesses Move to the U.S.

Relocating to the U.S. is a strategic business decision that opens new doors and solves real problems. By making the move, Canadian companies can:

  • Avoid import tariffs — Operating from within the U.S. eliminates duties that are driving up costs and cutting into margins.
  • Access a massive customer base — The U.S. gives you direct access to over 340 million consumers, often with higher purchasing power than in Canada.
  • Streamline logistics and fulfilment — Faster shipping, fewer customs delays, and lower transportation costs all improve efficiency and service.
  • Strengthen supply chain resilience — Being inside the U.S. helps avoid bottlenecks and border issues that can stall operations.
  • Attract U.S. talent and investment — A U.S. presence increases visibility with investors and opens up hiring from a broader talent pool.
  • Position your business for long-term growth — A cross-border footprint allows you to scale faster and compete more effectively in North American and global markets.

Smart Companies Don’t Wait for the Storm to Pass

If you’re waiting for trade tensions to ease or tariffs to quietly disappear, you might be waiting a long time. The truth is, the global trade environment is shifting fast, and businesses that move first gain the advantage.

We’ve seen this before. When uncertainty hits, the companies that rise are the ones that act early, not the ones that try to wait it out. Right now, the smartest Canadian businesses aren’t crossing their fingers; they’re crossing borders.

They’re not waiting for perfect timing. They’re setting up U.S. operations, securing supply chain stability, and locking in cost savings while others hesitate. That first-mover mindset creates room to innovate, expand, and outpace competitors still stuck navigating the same old roadblocks.

Because this isn’t just about risk — it’s about opportunity. While others are watching the weather, you could be building something that’s already storm-proof.

US Immigration is a Strategic Business Tool

When Canadian businesses move to the U.S., the right immigration strategy can make or break your timeline, your costs, and your ability to scale.

Here are the most effective immigration options for Canadian companies expanding into the U.S.:

  • L-1 Visa (Intra-Company Transfer) — You can move executives, managers, or specialized staff to your U.S. office. It’s ideal if you're opening a new branch or scaling an existing one. Canadians benefit from quicker processing at the border.
  • E-2 Visa (Investor Visa) — For business owners investing in a new or existing U.S. business. It’s flexible, renewable, and designed for hands-on entrepreneurs.
  • TN Visa (Under USMCA) — For Canadian professionals in approved roles who will work for your U.S. operation. This one is simple to apply and fast to process, which is great for building your U.S. team.
  • EB-1C Green Card (Multinational Executive) — A long-term option for executives or managers transferring permanently to run your U.S. operation. Requires proof of business history and structure on both sides of the border.
  • EB-5 Investor Visa — For businesses investing $800,000 or more into a U.S. venture that creates at least 10 jobs. Higher threshold, but it leads to permanent residency and deeper market integration.

Creative Strategies to Avoid Tariffs Without Moving

Not every business needs to cross the border to stay competitive. If you're committed to operating from Canada, there are still strategic moves you can make to lower your exposure to U.S. tariffs.

Each of these strategies requires careful planning and the right legal guidance. What works for one company may not work for another. At Ackah Law, we help you navigate these complex decisions so you can protect your business and move forward with confidence.

Partner with a U.S.-Based Distributor

Selling your goods through a U.S. distributor can shift the point of import. That means the distributor handles the customs process and you avoid direct tariff costs, especially if they’re buying in bulk and handling resale.

Use a U.S. Fulfilment Centre

You can store your inventory stateside and ship directly to U.S. customers. Fulfilment centres can cut delivery times, reduce customs headaches, and lower shipping costs. In some cases, you may qualify for bonded warehouse programs to defer or reduce duties.

Restructure Your Supply Chain

If your inputs are subject to high tariffs, look at new sourcing options. Shifting to suppliers in countries with better trade terms or adjusting your routing can create cost savings and make you less vulnerable to policy shifts.

Add Final-Stage Processing in the U.S.

Sometimes, doing light assembly, packaging or labelling in the U.S. changes the product’s country of origin. That could qualify your goods for lower or zero tariffs under certain rules of origin. It’s a creative move, but one that must be legally sound.

Rework Contracts to Share Tariff Costs

Strong value propositions give you leverage. If your product is in demand, U.S. buyers may agree to share the tariff burden through price adjustments or shared fees. It’s not common, but it’s happening in sectors where quality trumps cost.

The Real Risk Is Doing Nothing

You’ve seen the numbers, you’ve felt the squeeze, and by now, you know the real threat isn’t just tariffs — it’s standing still while your competitors make bold moves.

You don’t need to uproot everything tomorrow. However, if you want to stay profitable, protect your margins, and keep growing, the time to explore your options is now.

When Canadian businesses move to the U.S., it can open the door to new markets, lower costs, and stronger supply chains. And if relocating isn’t the right fit, there are still creative ways to reduce your tariff exposure without leaving Canada.

You’ve built something worth protecting. We can help you take the next step.

Book a free call with our client engagement team. Let’s talk about what’s possible for your business and how to get there without the stress.


Evelyn L. Ackah, BA, LL.B.

Founder/Managing Lawyer

Ms. Ackah is passionate about immigration law because it focuses on people and relationships, which are at the core of her personal values. Starting her legal career as a corporate/commercial ...

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