Tech Update: How Canada can help manufacturers steel themselves against Trump's doubled tariffs
This trade upheaval will also have consequences for labour. Unifor, the union which represents many workers in the aluminum and steel industries, has already called on the Canadian government to enact strong countermeasures.
Jayson Myers, the CEO of Next Generation Manufacturing Canada (NGen), says the impetus to support these sectors extends far beyond the immediate tariff-related tumult. 'This has been an issue for more than 20 years — ever since the Canada-U.S. free trade agreement came into place,' he explains.
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According to Myers, we've not been especially proactive or productive when it comes to protecting Canadian companies, steel producers and the Canadian market. Tariffs are the latest example, but he also points to the deluge of 'unfairly subsidized product' that has made its way into the country from around the world — materials that are being sold well under market price, with the effect of undermining and undercutting Canadian producers.
Procurement can be a valuable tool to mitigate the effects of this import/export roller-coaster, Myers says. 'For some time, the U.S. has had a Buy American provision, so federal infrastructure projects use U.S. steel and aluminum, and we have not done that,' he says. Going forward, with many Canadian infrastructure projects gearing up that involve steel and aluminum, there could be opportunities to benefit those sectors through mandates to buy metal from domestic producers.
Quantum company's big chip innovation
Toronto-based Xanadu has had a banner year so far — the company kicked off 2025 with the news that it had managed to develop a modular quantum computer, and followed that up by announcing several key collaborations. The latest development is a major accomplishment in a minuscule package: Xanadu has created a chip with error-resistant qubits. As quantum systems are very sensitive and especially prone to glitches, this innovation is a significant step toward Xanadu's goal of creating a scalable model that is powerful and commercially viable.
New fund to support AI training
Google Canada has announced it will be allocating $13 million to bolster AI skills development across the country. The AI Opportunity Fund will be shared by four Canadian organizations providing AI skills development and training. The four organizations receiving the funds are the Alberta Machine Intelligence Institute, the First Nations Technology Council, Skills for Change and the Toronto Public Library. These workforce development programs could help empower more than two million Canadians to succeed in an AI-powered economy.
Women rule at west coast Web Summit
Vancouver's inaugural Web Summit took place during the last week of May, culminating in a pitch competition where select early-stage startups presented to investors and partners onstage. Out of the 35 ventures who participated, three winners were chosen — all of them led by women. AI-powered smart stroller company GlüxKind and VodaSafe, which is developing sonar tools for aquatic rescues, were named runners-up, while Lite-1, which creates sustainable textile dyes, won the top prize.
Province shares plans to bring power to the people
According to recent analysis by the Independent Electricity System Operator (IESO), the demand for electrical power in Ontario is anticipated to surge by 75 per cent over the next 25 years. In response, the provincial government proposed legislation last week that it says will enable the energy sector to meet the needs of a growing population, economic expansion and more electrical intensification. The Protect Ontario By Securing Affordable Energy for Generations Act aims to drive economic growth for energy agencies, bolster cybersecurity measures and further develop infrastructure for nuclear and hydrogen systems.
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New initiatives for Indigenous communities
The Business Development Bank of Canada (BDC) has teamed up with the First Nations Bank of Canada to support Indigenous entrepreneurs. The collaboration, which the two institutions say is grounded in 'the spirit of economic reconciliation,' will provide $100 million in financing to catalyze more acquisitions of established businesses by Indigenous communities.
A separate initiative, led by Montreal-based research institute Mila, is driving economic reconciliation by equipping Indigenous participants with the skills to be leaders in tech. The second cohort of the Indigenous Pathfinders in AI program just launched; the 21 members will spend six weeks learning about AI and conceptualizing projects to explore applications of the technology in their communities.
By the numbers
•140,000 square feet: The size of the Centre for Excellence, a flagship facility that Cyclic Materials plans to build in Kingston, Ont. The site will house R&D, processing equipment and other critical infrastructure to support the rare earth elements recycling company's circular supply chain.
$4 million (U.S.): The size of Constellation Technology Ventures' strategic investment in EV-charging innovators SWTCH Energy. The funding will enable SWTCH to further develop its Cortex technology, a hybrid solution that merges cloud-based services and IRL infrastructure.
$3.3 trillion: The amount invested in clean technology globally, according to estimates from the International Energy Agency.
$89 million: How much the Canada Growth Fund is investing in Calgary geothermal startup Eavor.
Rebecca Gao writes about technology for MaRS. Torstar, the parent company of the Toronto Star, has partnered with MaRS to highlight innovation in Canadian companies.
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