Trade Talks Intensify as Canada Races to Beat the August 19 Tariff Deadline

With just over a week before a new round of U.S. tariffs takes effect, Canada's trade negotiators spent the past two weeks in Washington trying to head off the damage. Trade Minister Dominic LeBlanc returned to Washington for another round of meetings, and Prime Minister Mark Carney said discussions with the U.S. administration now cover all strategic sectors, including autos. Reports surfaced that Ottawa is weighing a package of concessions in exchange for relief on the sectoral tariffs set to hit dairy, alcohol, and a wide range of manufactured goods on August 19. No agreement had been reached as this went to press, and both sides describe the talks as ongoing.

For Canadian e-commerce operators sourcing goods, materials, or packaging with any U.S. exposure, or exporting into the U.S., the next nine days matter. A deal, or the lack of one, will shape landed costs and pricing decisions heading into Q4 planning season.

Shopify's AI Bet Pays Off as Q2 Earnings Beat Expectations

Shopify posted a strong second-quarter earnings beat and issued a third-quarter revenue forecast ahead of Wall Street estimates, with the company crediting its AI tools for pulling in new merchants across all sizes, product categories, and geographies. Shares jumped as much as 26 percent in premarket trading on the news, recovering the stock's losses for the year. The results push back on a narrative that had circulated earlier this year suggesting new AI-native shopping tools might erode Shopify's merchant base rather than expand it.

For Canadian merchants and the agencies serving them, this is a signal that platform-level AI investment is translating into real merchant growth, not just marketing language. Expect Shopify to lean further into AI-powered storefront and checkout tools through the back half of the year.

BDC Study Puts a $350 Billion Price Tag on Canada's SME Digital Gap

A new Business Development Bank of Canada study finds that Canadian small and medium sized businesses could unlock close to $350 billion in economic growth if more firms reached the digital and AI maturity of the country's top performers. The research, based on a survey of 1,500 Canadian business owners, found that while 96 percent of SMEs now invest in some form of digital technology, only 30 percent currently use generative AI, even though those that do report being 24 percent more productive. BDC frames the gap as one of execution rather than awareness: most SMEs already know AI matters, but few have moved past basic adoption into meaningful integration.

This is a useful data point for any Canadian marketer pitching AI-enabled services to SMB clients. The gap BDC describes, adoption without maturity, is exactly where agency and consulting support has the most room to add value.

Data Centre Imports Surge 88%, a Sign Canada's AI Buildout May Finally Be Moving

Statistics Canada data shows imports of computers and data centre equipment jumped 88 percent year over year in June, hitting a record $3 billion. Economists point to the spike as early evidence that Canada's AI infrastructure investment, long seen as lagging the United States, may be picking up pace. The jump follows a rise in business investment in computer equipment earlier in the year and comes as several large data centre projects move toward construction.

More domestic data centre capacity could eventually mean lower latency and more localized AI infrastructure for Canadian retailers and marketers building AI-powered tools, though the buildout is still in its early stages.

Job Growth Beats Forecasts, but the Details Are Mixed Ahead of the Tariff Deadline

Statistics Canada's July Labour Force Survey showed employment rose by 75,100, close to five times the median forecast, pushing the unemployment rate down to 6.4 percent, its lowest level in two years. Wholesale and retail trade led job gains with 21,000 new positions. But the composition of the report drew some caution from economists: private sector employees and the self-employed accounted for nearly all of the gain, while public administration alone shed 15,000 jobs. The report lands less than two weeks before new U.S. tariffs are set to take effect.

Wholesale and retail trade adding jobs is a good sign for consumer facing businesses heading into fall, but the timing next to the tariff deadline means this strength could be tested quickly.