Context:

A Canadian Chamber of Commerce report finds a small group of cities drove export diversification beyond the U.S. in 2025, with non-U.S. exports rising nationwide by 16.8%. The gains were concentrated in a few hubs, while many regions lagged, revealing a growing divergence in local trade performance. The analysis notes weaker momentum in Ontario manufacturing regions and signs of trade-related stress in highly U.S.-integrated areas. With global trade becoming more volatile, the report emphasizes the need for broader participation by firms, especially SMEs, to make diversification structural and resilient going forward.

Dive Deeper:

• Calgary and Ottawa-Gatineau posted the largest increases in exports to non-U.S. markets between 2024 and 2025, at 64.67% and 64.04% respectively, though the overall national gain was 16.8%. The growth largely came from existing exporters expanding their reach rather than new entrants.

• Toronto, Saskatoon, and Kelowna also registered substantial non-U.S. export gains, in the 28–33% range, illustrating uneven regional momentum across the country.

• Ontario’s manufacturing regions, including Oshawa, London, and Kitchener–Cambridge–Waterloo, show signs of trade-related economic stress, remaining heavily tied to the U.S. market with limited diversification to other markets.

• The report highlights a widening divergence in local trade performance, with some cities expanding into global markets while others remain exposed to U.S. demand, policy shifts, and disruptions.

• Despite a government aim to double non-U.S. exports over the next decade and some shifts in business strategies, many firms are only cautiously adjusting, with few actively diversifying sales or suppliers outside the U.S. and about 90% of non-exporting firms still describing operations as local.