From Tariffs to Tech Triumphs: The Week’s Most Impactful Business, Economic, and Startup Developments in the US and Canada
The week of May 5–11, 2025, was pivotal for North America’s business, technology, and startup landscapes. The region witnessed surging investment in AI, major cross-border economic shifts, significant retail and fintech developments, and a wave of small business adaptations. Below, we present the top 20 news stories and insights shaping the US and Canadian economies, with a special focus on small businesses, startups, funding, acquisitions, and technology trends.
1. 60% of Canadians Adjust Finances Amid New US Tariffs
A Nanos poll revealed that 60% of Canadians are actively adjusting their financial strategies in response to new tariffs imposed by the US. The survey, conducted between May 5 and 8, 2025, highlights growing economic anxiety and a shift in consumer and business behavior as cross-border trade becomes more uncertain.
2. Canadian Businesses Pivot to Domestic Markets
Facing mounting trade tensions and tariffs from the US, a growing number of Canadian small and medium-sized businesses are turning inward. Companies like NLI International Corp. are investing in domestic operations, expanding warehousing, and acquiring local transport firms. According to the Canadian Federation of Independent Business (CFIB), 32% of business owners have shifted to Canadian suppliers, and another 30% are considering it. This movement is also boosting the “Buy Canadian” trend, with 68% of consumers seeking homegrown products.
3. Record $82 Billion Invested in North American Startups in Q1 2025
Startup investment soared to $82 billion in Q1 2025, largely driven by a $40 billion deal for OpenAI. However, early-stage and seed funding declined, signaling increased investor caution and a preference for mature, proven companies. Notable deals included Apptronik’s $403 million Series A and Google’s planned $32 billion acquisition of cybersecurity firm Wiz.
4. Small Nova Scotian Businesses Halt US Shipping Due to Tariffs
Small businesses in Nova Scotia have stopped shipping products to the US, citing prohibitive costs and logistical headaches from new tariffs. This move underscores the real-world impact of international trade policies on local enterprises and their cross-border growth prospects.
5. Canadian Dollar Surges After US-UK Trade Deal
The USD/CAD exchange rate broke out of its descending channel, reaching a monthly high of 1.3945. This rally followed the announcement of a new US-UK trade deal, which is expected to influence Canadian exporters and importers, especially those with exposure to both markets.
6. Retail Shakeup: HBC’s Slow Demise and Giant Tiger’s Transformation
Hudson’s Bay Company (HBC), a Canadian retail icon, continues its slow decline, while discount retailer Giant Tiger is embracing major changes to remain competitive. Meanwhile, Walmart opened a small-format “community supercentre” in South Mississauga, reflecting shifting retail strategies.
7. Fintech Frenzy: Canadian Startups Defy Global Downturn
Canada’s fintech sector attracted a record $9.5 billion across 121 deals in 2024, outpacing global trends. Major moves included Nuvei’s $6.3 billion privatization and Plusgrade’s $1 billion investment from General Atlantic. The sector’s resilience is drawing continued interest from venture capital and private equity, especially for scalable, homegrown innovators.
8. Google’s $32 Billion Acquisition of Wiz Signals Cybersecurity Boom
Google’s planned $32 billion purchase of cybersecurity firm Wiz marks one of the largest tech acquisitions in recent memory. This deal underscores the growing importance of cloud security and is expected to drive further consolidation in the sector.
9. Snowbird Act Could Extend Canadians’ US Stays
The proposed Canadian Snowbird Visa Act would allow eligible Canadians aged 50+ to stay in the US for up to 240 days annually, up from the current limit. This change could benefit the travel, hospitality, and real estate sectors on both sides of the border.
10. Apptronik Raises $403 Million for Robotics Expansion
Apptronik, a robotics startup, closed a $403 million Series A round, highlighting investor enthusiasm for automation and robotics. The funding will accelerate product development and commercialization, with implications for manufacturing and logistics.
11. Vintage Clothing Shops Boom in Ottawa
Vintage clothing stores are proliferating across Ottawa, driven by consumer demand for sustainable fashion and unique finds. This trend is creating new opportunities for small retailers and entrepreneurs in the resale market.
12. Plusgrade Secures $1 Billion to Expand Loyalty Tech
Montreal-based Plusgrade received a $1 billion investment from General Atlantic, fueling its growth as a leader in travel loyalty technology. The deal signals confidence in travel tech’s rebound and scalability post-pandemic.
13. Pan American Silver to Acquire MAG Silver for $2.1 Billion
Pan American Silver announced a $2.1 billion agreement to acquire MAG Silver, consolidating assets and strengthening its position in the precious metals sector. MAG shareholders will receive $20.54 per share, and the deal is expected to close after shareholder approval.
14. Starbucks Ontario Stores Ratify First Union Contracts
Five Starbucks locations in Ontario ratified their first collective agreements, reflecting a growing labor movement in the retail sector. This development could influence labor relations and unionization efforts across North America’s service industries.
15. Walmart Launches 24/7 Self-Serve Grocery Store in Vancouver
Walmart opened Vancouver’s first self-serve, 24/7 grocery store, offering customers a fully automated shopping experience. This innovation responds to changing consumer preferences for convenience and contactless retail.
16. CoreWeave’s $1.5 Billion IPO Highlights Cloud Computing Demand
CoreWeave, a cloud infrastructure startup, completed a $1.5 billion IPO, reflecting surging demand for high-performance computing and AI workloads. The successful listing is a positive signal for other tech startups considering public offerings.
17. Small Businesses Call for Easier Interprovincial Trade in Canada
The CFIB is urging Canadian governments to adopt mutual recognition of products and services across provinces. Easing interprovincial trade barriers could unlock new markets for small businesses and support economic growth, especially as firms pivot away from US dependencies.
18. Shoplifting Costs Saskatchewan Retailers $180 Million Annually
Retail crime remains a major challenge, with Saskatchewan alone losing $180 million per year to shoplifting. This issue is prompting calls for stronger enforcement and new security measures, especially among small retailers.
19. Early-Stage Startup Funding Faces Headwinds
Despite overall record investment, early-stage and seed funding in North America declined in Q1 2025. Investors are showing caution, preferring to back established companies, which could make it harder for new startups to access capital.
20. “Buy Five, High Five” Campaign Promotes Canadian Products
The Business Development Bank of Canada (BDC) launched the “Buy Five, High Five” campaign, encouraging Canadians to promote five local products they love. If every household spent $25 more per week on Canadian-made goods, it could create 60,000 new jobs, according to BDC research.
Conclusion
From record-breaking investments and landmark acquisitions to the real-world struggles of small businesses, the past week has been transformative for North America’s economic and tech landscape. As trade policies shift and technology accelerates, businesses-big and small-are adapting with resilience and innovation.
For more insights and updates on global business trends, visit www.nextbusiness24.com
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