A woman holding a BUY CANADIAN sign as it relates to big teech services for business.

Is “Buy Canadian” Realistic in a Digital World? What the U.S.–Canada Trade Dispute Means for Businesses

December 2, 2025

When the Canadian government briefly introduced a digital services tax earlier this year—a 3% levy on digital platforms such as advertising, software subscriptions, and hosting—it sent ripples through the tech and marketing industries. The tax was quickly rescinded after trade tensions with the U.S. escalated, but it sparked a question that’s lingered ever since:

Can Canadian businesses really “buy Canadian” when it comes to digital tools and software?

“Canadian businesses are extremely reliant on American technology right now,” says Colin, Creative Director at Rose Agency. “The recent trade disputes just made that dependence a lot more visible.”

The Reality Behind “Digital Sovereignty”

While the idea of “digital sovereignty” sounds appealing—keeping data, software, and infrastructure within Canadian borders—the reality is far more complicated. Megan, Rose Agency’s Marketing Technologist, explains:

“You can replace some parts of your workflow with Canadian software, but not all of it. There’s no homegrown equivalent of Google Workspace or Microsoft 365. At best, you can get most of the way there, but probably not 100%.”

For most small and medium-sized businesses, the barriers aren’t ideological—they’re practical. Cost, usability, and integration often take precedence over patriotism. “SMEs will usually go with whatever’s easiest at the end of the day,” Megan notes.

The Trade War’s Ripple Effects on Digital Marketing

Although the proposed tax was short-lived, it revealed how intertwined marketing operations have become with international policy. A similar levy in the future could drive up costs for:

  • Digital advertising (Google Ads, Meta Ads)
  • SaaS tools (like CRMs, automation, analytics platforms)
  • Hosting and website infrastructure

Even a small percentage increase can ripple through a campaign budget. “If something like that came back into play,” says Colin, “your costs would just go up. There’s no real replacement, so you’d have to pay more for the same tools.”

The Privacy and Patriotism Equation

There’s also a growing Buy Canadian sentiment, but Colin and Megan agree it’s still niche. “You see it in healthcare, where data can’t leave the country, so Canadian hosting is essential,” Megan says. “But for most industries, it’s not a major movement—more of a talking point.”

Still, the conversation has value. It’s pushing companies to ask where their data lives, who owns it, and how reliant they are on foreign tech infrastructure. That awareness alone, Colin argues, is a step in the right direction.

“The best thing businesses can do right now is understand which services they depend on and where their data actually lives,” he says. “That’s just smart digital hygiene.”

What This Means for Clients Working With Agencies

For clients partnering with marketing agencies, this issue reinforces a larger truth: your agency should understand not only creative strategy, but the digital infrastructure behind it.

At Rose Agency, that means helping clients balance performance, compliance, and practicality. Whether using Canadian or international software, the goal remains the same—build resilient, cost-effective systems that won’t be shaken by politics or policy shifts.