Tariffs from the U.S. Pose New Challenges and Opportunities for Women Entrepreneurs in Canada
Trade, Tariffs and Turbulence: Women Entrepreneurs Navigate Economic Uncertainty in a Shifting Global Landscape
On March 26, Dr. Wendy Cukier, Founder and Academic Director of the Diversity Institute and Academic Director of the Women Entrepreneurship Knowledge Hub (WEKH), joined a panel of entrepreneurship research, policy and export experts which included Marwa Abdou, Senior Research Director at the Canadian Chamber of Commerce, Chelsea Sang, Head of Advisory Services at Export Navigator and Leah Gilbert Morris of Export Development Canada at a forum focusing on trade, tariffs and economic uncertainty hosted by one of WEKH’s 250 ecosystem partner organizations the Women’s Enterprise Organizations of Canada (WEOC). The virtual event drawing over 170 registrants explored how escalating global trade tensions and current and potential United States (U.S.) tariffs on Canadian exports are affecting women entrepreneurs across Canada.
Women entrepreneurs brace for the impact of tariffs
The current tariffs of 25% from the U.S. on some Canadian goods and Canada’s counter tariffs as well as the potential for more tariffs to come has increased uncertainty for Canadian small and medium-sized enterprises (SMEs) across the country. For women entrepreneurs, the potential fallout could be particularly damaging.
“Tariffs create ripple effects that touch everything from supply chains and pricing strategies to consumer confidence,” said Dr. Cukier. “But beyond economics, women are also shouldering the mental and emotional strain of prolonged instability.”
While women-owned businesses are less likely to export directly to the United States, they remain vulnerable through indirect impacts such as increased costs, reduced access to capital and shrinking margins. Dr. Cukier emphasized that many women entrepreneurs are heavily concentrated in sectors like retail, services, and health and beauty, industries especially vulnerable to supply chain disruptions and market volatility.
“Different segments of the women entrepreneurship ecosystem are being affected more severely than others,” said Cukier. “While many women-led businesses have been encouraged to export, particularly to the U.S., the introduction of new tariffs is now causing serious disruption. Businesses serving niche markets, such as products and services tailored to Black communities, have been especially hard hit.”
Cukier also highlighted untapped opportunities. “In crisis, there’s opportunity. The overwhelming majority of Canadians, 85%, are now saying they’re going to look for Canadian options.” While she acknowledged the seriousness of the challenges ahead, Cukier expressed confidence in the resilience of women entrepreneurs. With the right wraparound supports and strategic action from organizations like Export Development Canada (EDC), she believes women-led businesses can not only survive but thrive.
There is a need for inclusive, future-focused strategies
Cukier offered strategies to support women and other diverse entrepreneurs during the uncertainty. She urged policymakers to adopt a more inclusive, evidence-based approach to support women entrepreneurs, especially those who are self-employed and from diverse backgrounds.
She also emphasized a critical yet often overlooked point: the structure of women’s entrepreneurship in Canada differs significantly from that of men. While women own about 20% of incorporated businesses, approximately 110,000 companies, they represent 40% of self-employed Canadians, nearly a million individuals. “If all you count are SMEs, you’re missing 80% of women entrepreneurs,” she stressed. This structural gap has significant implications for how support programs are designed and delivered.
Vulnerability among the self-employed
Self-employed women, often solopreneurs or micro-business owners, tend to lack access to financing and structural support. Cukier noted that many remain unincorporated due to a combination of systemic barriers and individual constraints, leaving them more vulnerable to economic shocks like trade disruptions.
Cukier suggests a dual focus: continue supporting women-owned SMEs while also building infrastructure to assist self-employed women. “Encouraging incorporation where it makes sense is important,” Cukier said, “but so is ensuring support is not limited to those who are already structured in a certain way.”
Learning from the COVID-19 pandemic
Reflecting on the shortcomings and successes of past relief efforts during a comparable time of economic disruption, COVID-19, Dr. Cukier highlighted how many emergency support programs were designed around male-dominated business models, unintentionally sidelining women entrepreneurs. She emphasized the need for programs that factor in unpaid care work, access to mental health resources, and flexible financial supports like tax relief and forgivable loans.
Canada must avoid repeating the mistakes of the COVID-19 pandemic. “Loan-heavy solutions enriched banks but failed to help many women entrepreneurs, particularly those unable to take on additional debt,” she said. Instead, she called for more accessible and sustainable supports, including grant-based funding, targeted tax incentives and streamlined, low-barrier programs such as microloans.
Cukier further stressed that financial assistance alone is not enough. “Access to customers is just as important as access to capital,” she added, highlighting the importance of inclusive procurement programs and domestic consumer incentives that support women-owned businesses. She applauded the continued commitment to national childcare, calling it not just a women’s issue but a critical economic strategy. “We need to treat self-care, mental health, and childcare as central pillars in economic resilience.”
Unlocking capital and markets beyond the U.S.
Cukier warned that the current investment climate, especially the slowdown of U.S.-based funding in areas like tech and femtech, calls for intentional efforts to unlock capital within Canada. “We know the capital is here,” she said. “We need strategic approaches to connect it to women entrepreneurs.”
Chelsea Sang described two emerging response strategies among entrepreneurs. While some are temporarily retreating from their U.S. activities amid uncertainty, others are actively diversifying their customer base or even establishing cross-border operations to mitigate risks. Free advisory services such as Export Navigator are playing a key role in guiding businesses through this shift. She also pointed out Canada’s Trade Commission Service as a strong resource and its existing trade agreements which reflect Canada’s unique whole of government approach to women entrepreneurship. Canada has gender responsive trade agreements where women owned businesses are given space, and in fact, preferential procurement in some cases. She called on Canadian trade policy to continue to look beyond the U.S. “Women entrepreneurs are already more likely than men to export to markets outside the U.S.,” she noted, urging greater use of Canada’s immigrant diaspora to open international doors. Local knowledge, she argued, is key to building global supply chains and customer networks.
Technology and the future of women’s enterprise
All of the panelists discussed strategies for resilience through digital transformation, especially artificial intelligence (AI) which they agreed are needed and could support women entrepreneurs. Amid broader economic uncertainty, Cukier pointed to digital transformation as a bright spot. While women have historically adopted emerging tech like artificial intelligence at slower rates, that gap is closing. “Generative AI is the English majors’ revenge,” she said, highlighting the opportunity for women to enhance efficiency and innovate without deep coding expertise. While encouraging investment in digital readiness, Cukier also underscored the democratizing potential of AI: “It is no longer just for coders. AI tools can help entrepreneurs streamline operations, automate tasks, and uncover new opportunities.”