Canadian exporters losing confidence as global trade challenges mount: EDC

Export Development Canada says Canadian exporters are losing confidence as global trade headwinds intensify, with its latest Trade Confidence Index falling to one of its lowest levels on record.

The summer 2025 survey of more than 1,000 businesses found the index dropped 3.3 points from late 2024 to 65.7, well below its historical average. EDC says confidence has only fallen lower during the 2008 financial crisis, the COVID-19 pandemic and the post-pandemic inflation surge.

Among exporters, 40 per cent reported a decline in U.S. orders in the past six months, up sharply from 16 per cent in the previous survey. More than a third expect further drops in the coming months, while many also anticipate domestic sales will take a hit from tariffs.

Companies cited cash flow, higher operating costs and access to financing as top hurdles.

Despite the challenges, exporters are pursuing new markets and boosting domestic sales to diversify. But EDC says the use of free trade agreements remains limited, with only 34 per cent of eligible firms tapping into the Canada-EU trade deal and just 14 per cent using the Trans-Pacific pact.

EDC has published the index twice a year since 1999 to track the outlook of Canadian exporters.