Ongoing United States-Canada Trade Tensions Could Impact IT Services: What To Be Aware Of

With U.S.-Canada trade relations shifting, Canadian businesses working with U.S.-based ServiceNow implementation firms may soon face unexpected cost increases. According to Dentons [https://www.dentons.com/en/insights/newsletters/2025/february/19/trump-2-0-navigating-change-in-canada/us-market-access-and-cross-border-operations-for-canadian-software-companies], new tariffs include a 25% duty on key Canadian exports, and Canada has responded with a surtax on select U.S. goods and services.

While IT services have not yet been directly affected, experts warn that additional measures could be introduced, potentially leading to:

* Higher implementation costs if U.S. providers pass on compliance and tax-related fees.
* Project delays as U.S. firms prioritize domestic clients.
* Fluctuating exchange rates that make long-term contracts unpredictable.

As businesses plan their digital transformation strategies, ensuring financial stability in IT investments has never been more critical.

"In today's volatile trade climate, working with a Canadian ServiceNow partner isn't just optional-it's a safeguard," said Stewart Davenport, CEO of LeverageSN [https://www.leveragesn.com].

Why Using a Canadian-Based ServiceNow Partner Reduces Risk

To avoid potential financial and operational disruptions, many Canadian enterprises are reassessing their reliance on U.S.-based IT service providers. A Canadian-based ServiceNow partner offers cost certainty, contract stability, and seamless compliance with Canadian regulations.

* No Tariff Risk - Avoid potential cross-border tax hikes or unexpected fees.
* Regulatory Compliance - Ensure full alignment with Canadian data sovereignty laws (PIPEDA) and industry-specific regulations.
* Financial Predictability - Eliminate foreign exchange fluctuations that could affect multi-year contracts.
* Faster, Localized Support - Work within the same time zones for quicker response times and real-time troubleshooting.

Strengthening Canada's Digital Economy Through Local Expertise

Beyond mitigating trade risks, investing in Canadian IT services fosters innovation, job creation, and digital transformation.

By choosing a Canadian-based ServiceNow partner, businesses:

* Support Local Talent - Strengthen Canada's growing tech sector by working with Canadian IT professionals.
* Ensure Long-Term Stability - Build IT service partnerships unaffected by global trade disputes.
* Enhance Data Protection - Keep sensitive business and customer data within Canada's privacy law framework.

Industry-Specific Benefits: Who Gains the Most?

For some industries, a Canadian-based ServiceNow implementation firm is more than just a financial advantage-it's a necessity.

Examples include:

* Healthcare & Life Sciences - Compliance with Canadian healthcare privacy laws ensures patient data is secure.
* Financial Services & Insurance - Avoid regulatory conflicts with strict Canadian data handling requirements.
* Government & Public Services - Ensure adherence to Canadian procurement policies and cloud security mandates.
* Telecom & Utilities - Reduce implementation risks for large-scale, high-availability service infrastructures.

Looking Ahead

With trade tensions evolving, businesses must take a proactive approach to IT service procurement. Whether or not additional tariffs impact IT implementations, working with a Canadian-based ServiceNow partner ensures cost stability, compliance, and long-term scalability.

Contact us to learn how businesses are mitigating risk and ensuring IT service stability in an evolving trade environment.

For more information visit https://www.leveragesn.com

About LeverageSN

LeverageSN is a Canadian-based ServiceNow implementation and consulting firm dedicated to helping enterprises streamline digital operations, automate workflows, and accelerate transformation initiatives. With deep expertise in ServiceNow solutions and a strong understanding of Canadian compliance requirements, LeverageSN empowers organizations across industries to achieve scalable, secure, and future-ready IT service management. Whether you're in healthcare, finance, telecom, or the public sector, LeverageSN delivers local expertise with global impact.

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