Calgary Companies Shift Trade Focus as U.S. Economic War Intensifies
In a significant economic realignment, Calgary-based businesses are dramatically reducing their reliance on the United States market, according to new data from Calgary Economic Development (CED). The agency reports that trade deals with U.S. customers dropped to just 24 per cent of their supported agreements in 2025, down from 35 per cent the previous year. This marks the smallest share of U.S.-focused trade deals on record for the organization.
Navigating Uncertainty Through Global Expansion
The shift comes amid ongoing trade tensions between Canada and the United States, particularly following the implementation of punitive tariffs by the Trump administration. These measures, aimed at encouraging domestic industry and addressing perceived trade imbalances, have created substantial uncertainty for Canadian exporters. Brad Parry, President and CEO of Calgary Economic Development, emphasized that local companies are responding proactively to these challenges.
"Alberta companies are not shying away from growth in the face of uncertainty," Parry stated. "A year after renewed trade uncertainty reshaped global markets, we're seeing a decisive shift towards continued market diversification. Businesses are intentionally expanding into new global markets, taking advantage of Canada's trade agreements, forming strategic partnerships and future-proofing their growth at levels we haven't seen before."
Record Diversification Across Six Continents
The data reveals an unprecedented level of international expansion among Calgary firms. Companies supported by CED expanded into 21 new markets across six continents in 2025, spanning diverse sectors including:
- Aerospace and advanced manufacturing
- Information technology and clean energy
- Agricultural business and life sciences
This diversification stands in stark contrast to broader Canadian trade patterns, where approximately 68 per cent of national exports still flowed to the United States in 2025. The Calgary experience suggests a more aggressive approach to reducing dependency on a single market.
Corporate Case Studies: From Noise Suppression to Snack Foods
Several Calgary companies exemplify this strategic shift. ZeroSound, which produces industrial noise suppression systems, has been actively expanding into markets in Australia, Europe, the Middle East, and Latin America. Founder and CEO Norm Bogner explained the rationale behind this move.
"It just comes into sharp relief with the current trade war that diversification made sense," Bogner said. "Nobody knows – you can work with more certainty when you're not reliant on one market... staying with one jurisdiction, you could lose your shirt. At the same time, we're not picking our ball and leaving the U.S. market."
Another notable example is Casa Bonita, a company specializing in Mexican-style snack products. Following participation in a trade expo in Japan organized with CED support, the firm has established partnerships in Japan, South Korea, Thailand, and Australia. Company director Sergio Llerena described the strategic reorientation.
"Once realizing that our neighbors became unreliable, we started looking elsewhere for new commercial partners," Llerena noted. "Through the mission, we secured partners that share our same principles and value long standing relationships, leaving the U.S., our former main export market, in a very distant place for our products and efforts."
Broader Economic Impacts and Travel Sector Contraction
The trade diversification coincides with measurable declines in cross-border travel between Canada and the United States. Land travel to the U.S. fell by approximately 31 per cent in 2025, while flights decreased by 10 to 15 per cent compared to 2024 levels. These trends have prompted significant operational adjustments within the transportation sector.
This week, WestJet announced it will eliminate flights to 10 U.S. cities this summer due to decreased demand, with company officials indicating they do not expect this slowdown to reverse in the near term. The broader economic relationship between the two nations remains substantial, with the U.S. accounting for about 75 per cent of Canada's exports and approximately $1.3 trillion in goods crossing the border annually.
The current economic climate has been further complicated by recurring suggestions from Washington about applying economic pressure to influence Canadian policy. This has contributed to growing Canadian resentment and accelerated the search for alternative trading partners among businesses in Calgary and beyond.
