Facing continued uncertainty, 72% of exporters plan to pursue new markets while some expand beyond exports into investment and other trade activities
OTTAWA, ON, Sept. 3, 2026 /CNW/ -- Canadian exporters are demonstrating resilience by pursuing new markets, strengthening their domestic foundations and engaging in trade activities beyond traditional exports, according to findings from Export Development Canada's (EDC) latest Trade Confidence Index (TCI). The findings were collected before the U.S. imposed 50% tariffs on a range of Canadian goods on August 22, 2026, under Section 338 of the U.S. Tariff Act of 1930, and are therefore not reflected in this release.
The survey found that 72% of exporters plan to enter new markets over the next two years, up from 65% just five months ago. It also revealed that the most confident exporters are those pursuing a broader trade strategy, combining exports and imports with other forms of trade integration, including domestic sourcing and investing in capabilities both in Canada and abroad.
Confidence is also growing at home, with exporters expecting improvements in domestic sales and implementing ways to rebalance their exposure to the U.S market. Despite ongoing trade uncertainty, confidence improved across the index, rising to 71.7 from 69.7 at year-end 2025.
"Canadian businesses are demonstrating their resilience and confidence by building on their strengths at home while pursuing opportunities around the world," says The Honourable Maninder Sidhu, Minister of International Trade. "That is why Canada's goods exports to non-U.S. markets grew by 17% last year, an increase of more than $33 billion, as more businesses take advantage of the trade agreements that we're securing. As exporters diversify and expand their global reach, we are moving at speed to unlock new trade partnerships, reduce barriers, and provide targeted support to help Canadian businesses compete and grow."
"Canadian exporters are adjusting to a new reality where uncertainty is not a temporary disruption, but an ongoing feature of the global trade environment," said Stuart Bergman, Chief Economist at EDC. "What we're seeing is a shift from a reactive mindset to one of greater resilience and resolve. Businesses are bolstering their domestic operations, investing in productivity, and strengthening their supply chains--all of which enhances their ability to break into new export markets. For many exporters, domestic strength is becoming the foundation that supports long-term, diversified global growth."
Growing exporter interest in new markets
Most exporters (72%) remain focused on diversifying their export markets, with Europe (31%) and the Asia-Pacific region (20%) identified as the most attractive destinations. Exporters are primarily motivated to add new revenue streams (24%), widen their customer base (21%) and respond to favourable market conditions in a new market (20%).
Foreign investment activity is growing as businesses look for more ways to diversify beyond exports, with more than one-third (34%) currently investing outside Canada, up from 29% at year-end 2025. Additionally, exporters with foreign investments report significantly higher levels of trade confidence.
Higher confidence among exporters with globally integrated business models
Confidence increases as businesses participate in numerous forms of trade. Exporters serving both the U.S. and other markets reported the highest TCI score (72.7) in comparison to those focused exclusively on the U.S (69.5). Further, exporters active in both the U.S. and other markets participate more broadly in trade integration activities, including purchasing from Canadian suppliers (84%), investing inside Canada (71%), importing (70%), and investing outside Canada (41%).
Exporters grow more confident in domestic sales
The strongest gains in confidence were tied to easing inflation, stabilizing interest rates, increased demand and growing support for Canadian products and services. More than half (55%) of exporters surveyed expect domestic sales to increase over the next six months, up from 48% at year-end 2025. Exporters also point to an increase in productivity-enhancing investments, including intellectual property and software (32%) and advanced machinery and equipment (30%).
Exporters finding ways to rebalance U.S. exposure
Canadian exporters are reporting weaker U.S. demand, with nearly one-third (32%) seeing a decline in orders over the past six months. Looking ahead, 42% expect sales to remain at lower levels and 21% expect sales to decline further. In response, exporters are adapting by increasing domestic sales (29%), sourcing locally (22%), accepting lower profit margins (20%), and expanding into new export markets (19%).
Other findings:
- Manufacturing (67.6) and agriculture and forestry (68.1) sectors reported the lowest confidence levels among key Canadian industries.
- The U.S. remains the dominant export market for Canadian businesses, with 81% of exporters currently active in the market, given geographic proximity, integrated supply chains, and long-standing business relationships.
- 66% of exporters already invest in Canada and another 18% plan to invest domestically.
For more information, visit edc.ca.
Survey methodology
The TCI survey was conducted between June 8 and July 27, 2026, and released on September 3, 2026. Since 1999, EDC surveys Canadian exporters and businesses planning to export twice a year. The results are a pulse check of their level of confidence and expectations of international trade opportunities over the next six months. The TCI data is weighted to represent the Canadian exporter and ready-to-export population. The 2026 mid-year TCI received a total of 1,015 respondents, with 790 completing all five TCI questions used to calculate the overall index score.
About EDC
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian businesses make an impact at home and abroad. EDC has the financial products and knowledge Canadian companies need to confidently enter new markets, reduce financial risk and grow their business as they go from local to global. Together, EDC and Canadian companies are building a more prosperous, stronger and sustainable economy for all Canadians. For more information and to learn how we can help your company, call us at 1-800-229-0575 or visit www.edc.ca.
SOURCE Export Development Canada
Media Contact: Media | Export Development Canada, 1-888-222-4065, [email protected]
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