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

April 18 12:50 2025

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, 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.

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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