Act now to avoid tariff impacts, say B.C. investors

With President Trump's threatened 25 percent tariffs on Canadian goods casting a shadow over cross-border trade, Vancouver investors and advisors are providing concrete strategies to help startups navigate the uncertainty. Their collective guidance offers a blueprint for both defensive positioning and opportunistic growth.

Preparing for change

The consensus among advisors is that preparation trumps prediction. "When the tariffs were first announced, we immediately reached out to our portfolio companies," says Leah Nguyen, chief investment officer at InBC Investment Corporation. She highlights its three-pronged approach: "offer resources to help navigate the change, help assess potential impacts of the tariffs and fluctuating foreign exchange rate on areas such as sales and supply chain, and identify what support they might need."

Maria Pacella, managing partner at Pender Ventures, emphasizes the importance of dynamic planning: "Stay calm and carry on. Do scenario analysis, do it again, and iterate it as you learn more." She recommends developing specific contingency plans, including "change of pricing, setting up U.S. subsidiaries to facilitate transfer pricing, and doubling up efforts on sales in less-affected areas."

From uncertainty to opportunity

Diraj Goel, managing partner at GetFresh Ventures, provides perhaps the most aggressive stance on turning market uncertainty into advantage: "Trade uncertainty will always exist — tariffs, policy shifts, supply chain disruptions — these cycles repeat, and founders cannot afford to sit back waiting for clarity."

His tactical advice is clear: "Prices are rising, and buyers are feeling the pressure whether they acknowledge it or not. There is a strong chance that tariffs and supply chain disruptions will push costs even higher. Locking in now secures your pricing before increases impact your margins and cash flow."

Rather than getting paralyzed by uncertainty, Goel argues for using it as a closing tool: "Buyers are already looking for stability in an unstable market. If a founder can provide that stability — through pricing, contracts, or guarantees — they can move cash forward and strengthen customer relationships in the process."

Strategic market diversification

Geographic diversification has moved from good practice to strategic imperative. Nguyen emphasizes that while "securing a couple of large accounts is a strong early milestone," over-reliance on a single market poses significant risks. She points to valuable places where British Columbians can find help: "Organizations like Trade and Invest BC and Export Development Canada have great resources to help navigate expanding into new regions."

Pacella provides specific market guidance. Europe and Australia are “most obvious for international expansion,” and she recommends companies "avoid sectors reliant on government subsidies" in the U.S. market.

Supply chain adaptation

For hardware companies, Boris Wertz, founding partner of Version One Ventures, cuts through the uncertainty with clear directives: "Look for manufacturing options in the U.S. asap and try to diversify away from America as a market." This two-pronged approach — securing U.S. production while reducing U.S. market dependency — offers a practical hedge against trade tensions.

Portfolio companies are already implementing such strategies. Nguyen notes InBC is "actively assessing the potential impacts on [its business’s] supply chains and diversifying their supplier bases where possible to mitigate risks," while continuously evaluating whether adjustments to their manufacturing strategies are necessary.

Building long-term resilience

The BC Tech Association's recent survey reveals the ecosystem's understanding of resilience. Jill Tipping, president and CEO, reports that "57 percent of BC Tech members are anticipating broader economic impacts from tariffs." More significantly, its members recognize that "no single factor drives resilience — while 31 percent prioritize access to capital, others see investment in tech adoption, AI, skills, and policy support play key roles."

For software companies, the strategy differs. Melaniia Volkodav, an investor with Panache Ventures, remains optimistic about Canada's fundamental strengths: "We continue to believe that Canada is a great place to build software businesses because of our world-class universities, well-funded scientific research, incredible tech talent, and visionary founders."

Looking ahead

As Nguyen observes, "These shifting market dynamics have introduced additional challenges and risks to companies that we're talking to, but they can also create opportunities. Founders who are resilient, resourceful, and able to adapt can turn this uncertainty into growth."

The message from Canada's investment community isn't just about survival — it's about seizing opportunity. As Goel emphasizes, "Many founders overcomplicate this. They spend too much time trying to map out possible economic scenarios instead of recognizing that the window to act is right in front of them."

For Vancouver startups, success requires balancing immediate tactical responses with strategic positioning. Those who can secure near-term advantages while building long-term resilience will be best positioned to thrive, regardless of how trade tensions evolve. Citing that old adage, Goel says, “Never let a crisis go wasted.”

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