Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
In a care[...]
Category Archives: Cyber Security, Hacks, Fraud Alerts, Risks, InsurTech
Insights from Jamie Dimon’s 2024 Letter to Shareholders
Markets and Economy | April 15, 2025
Image: Jamie Dimon, Chairman and CEO, JP Morgan Chase
Jamie Dimon’s 2024 Letter Outlines Global Risks and Advice for Leaders
On April 7 2025, CEO Jamie Dimon of JPMorgan Chase published his annual 2024 letter to shareholders (58 page PDF), which is widely read by business and policy leaders around the globe. This year's edition, his messages are especially urgent. He describes a world of rising risks, and big decisions ahead with profound implications that stretch beyond simply Wall Street. Below are 5 insights that fintech founders, investors and Canadian decision makers need to know:
1. The U.S. Dollar’s Strength is At Risk
“History has shown that as countries become weaker, their currency loses reserve currency status.”
Dimon issued a clear warning that's rarely said out loud by execs of America’s biggest banks. That is the U.S. dollar’s global dominance is fading because it's strength relies on TRUST in U.S. institutions, alliances, and policy, BUT that trust is now eroding.
Last week, the U.S. dollar dropped significantly reaching a 3 year low against major global currencies. The decline is largely due to the Trump administration's escalating tariffs and trade tensions on imports from several countries, such as China, Canada and European nations. Tariffs led to increased market volatility, shaking investor confidence in American economic policies.
See: Ottawa Unleashes Policy Blitz to Support Economy
The WSJ published a report with the former Treasury Secretary, Janet Yellen, saying that investors "seem to be shunning dollar assets". Previously, for the past several decades, investors flocked to buy U.S. dollars during times of volatility and economic uncertainty because it was considered stable and safe.
American risks or lack of trust in its institutions is now prompting countries like Germany who hold 1200 tonne of their US gold reserve on American soil, to verify the existence of their gold and begin repatriating it back to Germany in case assets are suddenly frozen or risks spiral out of control. And they aren't the only country with concerns.
For Canada, this might open a window. If global capital starts looking for stable alternatives, Canadian institutions can position themselves as reliable partners. Our political stability and sound financial regulations are competitive assets. This is a moment to invest in confidence including the platforms and tools fintechs are building.
2. What Happens If the Free Ride Ends?
Dimon spells out just how much the U.S. benefits from being the world’s reserve currency:
“Being the reserve currency saves the United States $100 billion a year at current interest rates... People around the world actually carry approximately $2.5 trillion of paper U.S. dollars, which, in effect, is borrowing without paying interest.”
However, the U.S. being the global reserve currency isn't sustainable without continued global trust. For financial technology firms offering multi-currency accounts, global payments, and crypto on-ramps, this new reality is an opportunity.
See: Stablecoins Are Growing Faster Than You Think
If the dollar loses its unique place in the global system, financial firms will need to design for a world where volatility is the norm. That could mean hedging tools, stablecoins backed by liquid and diversified reserves, and tokenization of various assets could see a boost akin to gold, or a digital version of it.
3. A Weakened Financial System at Risk
“The U.S. deficit remains very large at just below $2 trillion, or 6.6% of GDP,” and warns that the “debt-to-GDP ratio is already over 100%.”
The U.S. government has borrowed nearly $11 trillion since the pandemic. The total U.S. federal debt is more than $34 trillion, which is greater than 100% of GDP. He says this is a structural issue and that America's fiscal path is on unstable footing. When debt continues to rise with no end in sight, global confidence wavers.
While in a different situation, Canada is under economic pressure from Trump's tariffs and trade war, persistent decline in productivity, and lower growth and foreign direct investment compared to many of its peer countries. It must restructure its own policies to support a fiscal agenda that supports innovation, digital infrastructure, supply chain and trading partner diversification, interprovincial trade, and green transitions that put Canada on a new path of economic growth. Canada can offer to the world what the U.S.'s current administration is turning, it's back against, a well managed democracy, and a country with ample resources (including human capital) that's serious about the future.
4. Fragmentation Could Break the System
One of Dimon’s strongest warnings is about fragmentation.
“Economic fragmentation from our allies may be disastrous in the long run… Keeping our alliances together, both militarily and economically, is essential.”
He’s not just just talking about political division but economic ones, such as trade wars, competing currencies and trading blocs, and digital standards that no longer align with alliances that underpin and support U.S. markets in the way they do today. A world where economic cooperation breaks down and different countries build their own separate systems for money, trade, and technology - leading to incompatible digital standard and higher costs while opening the door for bad actors to take advantage of new weak links in the system. It could also encourage allies to rally around a new financial power for stability.
See: Digital Export Trends and Global Trade Fintech Opportunities
For fintechs and Canada, it's a risk and opportunity. It means building our own rails, compliance protocols, and digital ID systems that work across borders. The more neutral, resilient, and standardized Canada's digital infrastructure becomes, the more relevant it is globally.
5 Pieces of Management Advice from Diamon's Playbook
In his letter to shareholders, Dimon shares lessons from decades of experience fro leading through crisis, transformation, and growth.
1. He warns that innovation can be smothered by too much money, too little clarity, or endless process. For startups, that’s a reminder to stay scrappy and experimental.
“You can kill innovation with too many resources, too few resources or bureaucracy… Evaluate innovative ideas through testing and learning rather than rote analysis.”
2. He also challenges the usual advice about delegation for mission-critical areas like cybersecurity, talent, or trust, and says leaders should get into the details.
“I changed my mind. I’m going to micromanage this one… In my entire career, I’ve rarely seen this kind of outsourcing of responsibility succeed.”
3. Don’t hide behind weak benchmarks.
See: Canadian Fintech Booms with $9.5B Despite Global Slump
4. Don’t sit through bad meetings, but "if a meeting is required, make it count… I ALWAYS do the pre-read… This has to stop: people checking notifications, texting, reading email. It’s disrespectful. It wastes time.”
5. In uncertain times, discipline is more powerful than vision alone.
Conclusion
The status quo is no longer. As geopolitical and economic risks take over, it's more pressing than ever for Canada to grow trust, build bridges, and invest in innovation with a strong economic growth mandate. Canada's fintech and financial ecosystem, can still thrive in a fragmenting world. We can't outspend superpowers but we can out-think them.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Trump’s Tariff Pause Leaves Canada in the Cold
Economy | April 10, 2025
Image: Freepik/tawatchai07
Trump Temporarily Halts Tariffs for Most Countries But Keeps Pressure on Canada, Mexico, and China
On April 10, 2025, President Trump announced a 90-day pause on most of the newly implemented global trade tariffs after market backlash and political pressure. The break was extended to countries in Europe, Asia, and parts of South America, but Canada, Mexico, and China are still under tariff pressure.
Strategic Pause, Not for Everyone
While Trump paused the most recent tariffs for over 75 countries, U.S. tariffs still apply to Canada and Mexico primarily on cars and auto parts (25%), steel (25%), aluminum (10%), and some agricultural products like dairy, grains, and processed foods, and continue to affect cross border trade in manufacturing and farming sectors.
Trump's pause also didn't apply to China In fact, Tariffs on Chinese good were raised to 125%, as China hit back with an 84% tariff on U.S. goods and filed new complaints with the World Trade Organization.
See: Klarna Delays IPO As Markets React to Trump’s Tariffs
After the tariff pause was announced, markets surged with the S&P 500 exploding 9.5%, the largest one day gain since World War II, according to Business Insider.
But the rebound didn't last long, as markets opened the following morning on April 10, the S&P 500 dropped 2.3% out of the gate and is continuing its slide currently down 5%.
Timing of the Pause Raises Eyebrows
Right before the tariff pause was announced, Trump posted on social media telling people “THIS IS A GREAT TIME TO BUY!!! DJT.” The DJT trading symbol referenced his Trump Media & Technology Group company. Hours later, markets soared. Some U.S. lawmakers are questioning whether Trump or anyone close to him benefited financially from his announcement (aka insider trading).
According to TIME, Senator Adam Schiff has called for an investigation, asking the White House to hand over records to see if anyone used that information to trade stocks before the news went public.
Innovation Caught in the Crossfire
Tariffs aren't just about physical goods. Canada’s fintech firms, software exporters, and digital infrastructure providers also face risks, as many of these companies work closely with U.S. partners, investors, and regulators. Every barrier, whether its through tariffs, compliance hurdles or market uncertainty and confidence, slows down innovation, especially in the most innovative emerging sectors like AI, open banking, blockchain and embedded finance.
See: Five Ways Countries Are Responding to Trump’s Tariffs
Early stage startups are especially exposed, as any cross border collaborations, capital raises, and pilot projects face second thoughts and/or delays from U.S. partners.
What’s next?
Expect heightened volatility to continue. Canadian companies need to stay alert, continue to diversify trade relationships, and build a stronger domestic economy and ecosystem that reduces exposure to abrupt, off the cuff U.S. policy changes impacting trade and relationships.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Tailscale Raises $230M to Power Identity-First Networking
Funding | April 9, 2025
Image from Tailscale's Series C blog announcement
Toronto’s Tailscale Secures $230M and $2B Valuation for Identity-First Networking
On April 8 2025, Toronto-based Tailscale announced that they raised $230 million CAD Series C (about $160 million USD), valuing the company at approx $2 billion CAD. The round was made up of U.S. investors, led by Accel, CRV, Insight Partners, Heavybit, and Uncork Capital, along with some prominent individual investors notably George Kurtz CEO of CrowdStrike (returning investor) and Anthony Casalena CEO of Squarespace. New funds will be used to grow product and engineering teams, expand globally, and improved support for fast scaling customers.
Tailscale - A Shift from IP Addresses to Identity
Tailscale was founded in 2019 by former Google engineers Avery Pennarun, David Crawshaw, David Carney, and Brad Fitzpatrick, and officially launched in April 2020 to help users connect devices and apps securely without relying on traditional VPNs, IP rules, or firewalls.
Tailscale uses a technology called WireGuard which is easy to setup and lets devices connect directly to each other, safely and privately. What's unique about Tailscale is its approach to solving networking challenges. Instead of relying on where a device is located (IP address), it focuses on who or what is connecting. This approach is called identity-first networking, and is a more modern solution in a world where teams work remotely, apps operate across various cloud platforms, and security rules are becoming stricter.
See: AI Concierge Tech and the Future of Finance
So instead of trusting a device because it has a certain IP address, Tailscale checks and verifies the identity of every user, device, or service trying to connect, making it easier for companies working in the cloud. Models that rely on firewalls, assume that any device inside the network is trustworthy while the risk is outside. But today's networks are too distributed for that approach to hold up today, making identity-first networking a more flexible and secure alternative for modern times.
Avery Pennarun CEO Tailscale describes it as:
“You’re connecting to your app, your teammate, your service — wherever it happens to be running right now.”
Which sectors could be disrupted?
Tailscale's model reduces/eliminates the need for traditional VPNs, static firewall rules, and perimeter defence, placing VPN and firewall vendors on notice. Managed service providers on traditional network configuration, such as port forwarding, IP management or hardware firewalls, will be under pressure as they lose relevance, assuming the identity-first networking movement continues to grow.
See: Securing Your IoT Network Against Emerging Threats
Further, any 'zero trust' solution that still relies on IP allowlists or geography-based filters are also at risk. Identity-first networking is meant to offer real Zero Trust, cryptographic identity access across dynamic environments, a better fit for compliance teams needing continuous monitoring and real time enforcement.
According to Betakit, Tailscale is already being used by over 10,000 clients, such as fast growing AI and tech companies like Perplexity, Cohere, Groq, Mistral and Hugging Face, alongside enterprises like SAP, Instacart, Telus, and Duolingo.
Notable Absence of Canadian Capital?
Although Tailscale is proudly based in Toronto, none of the firms participating in this $230M Series C were Canadian, reflecting a troubling pattern of Canadian innovation meets U.S. capital.
See: How Secure Networking Can Protect Your Business Data from Threats
While deep liquidity and quick deployment of global funding accelerates Tailscale's growth, the lack of domestic institutional investors in large scale Canadian tech rounds raises questions about ecosystem competitiveness, strategic alignment and ultimately, ownership retention long term. It's great for Canadian fintechs to have this kind of access to foreign capital but a real hurdle to build stronger investment pipelines at home.
Why It Matters for Fintechs
As digital interactions and businesses become more complicated, they need better ways to keep things secure by focusing on who or what is connecting, not just where it's coming from. Financial technology companies deal with reams of sensitive data, multiple cloud deployments, third party integrations, and remote teams, and are key prospects for using an identity-first networking solution. One that's secure and can scale with real-time access control by identity (user, device, or service), improved auditability for KYC and compliance, and easier cross-border infrastructure. Fintechs should take a fresh look at how their systems are built, and retool if necessary. The future of security, compliance, and growth will likely rely on identity-based technology at the core.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Support NCFA by Following us on Twitter!Follow @NCFACanada |
Waymo Plans to Train AI Using In-Car Camera Footage
Privacy | April 7, 2025
Image: Freepik
Waymo’s In-car Data Plans Echo Orwell's 1984
As featured in TechCrunch, autonomous robotaxi firm Waymo is reportedly preparing to use in-car video data recordings of its identifiable passengers to train AI systems. Apparently, a researcher uncovered a 'draft privacy policy' that raises red flags, suggesting that users would not be directly notified or prompted to opt in. Call it ambient surveillance, or outright overreach but this invisible, continuous breach and approach to privacy is becoming normalized and embedded into business models of modern tech.
See: Ensuring Data Privacy in AI-Driven ID Scanning: Balancing Innovation and Compliance
Waymo clarified later that the feature is still work-in-progress but when companies at the cutting edge of mobility, fintech, and smart infrastructure, treat the public like collateral damage, it's time for people to stand up and push back against being a character right out of George Orwell's 1984 - that's right, Big Brother.
Surveillance Is No Longer Just About Security
Grocery stores are using facial recognition to monitor stores and shoppers behaviour, or how about surveillance and sensors at cashierless stores. Banks are using keystroke tracking to monitor employees.
Surveillance used to be about security but it's evolved into consumer experiences, services design, and product optimization. People now enter physical or digital spaces without even knowing whether their voice, face, movement or even tone is being tracked and analyzed for analytics or AI training. It's a slippery slope and can erode consumer trust, especially if it breaks a core fintech and digital innovation principle based on 'permission'.
Surveillance Free Zones?
These would be places or environments where surveillance monitoring simply isn't allowed or doesn't happen. These zones would offer privacy and a break from that feeling of being watched, studied, analyzed.
See: Major Data Breach @Finastra and Canadian Banks?
To some degree we have these private spaces in our lives today, at our home, or safe space but what if your favourite financial app disabled behavioural tracking by default and that was a differentiator in their business model where privacy, trust, transparency and customer empowerment are core to long term adoption and growth of a product or service.
Consent Needs a Redesign and Value Prop
Surveillance free experiences can built trust and help companies differentiate but the real opportunity is in redefining what it means to people who opt in.
Today the act of opting into an activity is a 'legal gate' where if a user clicks and 'agrees' to move forward then they have allowed it. What about a different model based around value, so if a user provides consent then they actively allow it but in exchange they want something of value in return.
The obvious value exchange is monetary where if someone's data is helping train a commercial AI model then that person's data could generate a tangible return, such as revenue sharing, or some type of platform equity, or a Web3 environment that tracks your data flows and offers tokenized compensation tied to impact and usage.
See: US Financial Surveillance Report Shows Privacy in Crisis
Another value exchange driver could be utility. Where sharing behavioural data leads to a better outcome, such as improved fraud protection, more accurate credit scoring, optimized financial coaching etc. In this way, users see the benefit clearly, and they should have the option to participate or not.
Some users may be motivated by purpose. Canadians for example may show a willingness to share data if it serves the public good, such as improved healthcare models, smarter urban planning, or inclusive innovation.
Any form of consent must put users in the driver's seat and allow them to control their participation. They need to be able to see and understand how their data is going to be used, for how long and in what ways, and have the option to revoke it. Any approach that's going to work in support of long term adoption will need to put participants at the forefront and treat them as humans, not data sources.
Canada Can Lead on Privacy Innovation
Waymo’s plan whether it comes to fruition or not, highlights how easily surveillance can be baked into a future services - literally in a legal and privacy document that most users will not read. Even companies with strong brand trust are drifting towards this world of data collection by default. That's why surveillance, privacy and consent matters.
See: Balancing AI Automation and Ethics in Fintech
Canada seemingly has the tools, policy infrastructure, and appreciation for leading privacy first innovation. There's a growing public awareness and need for privacy updates at the national level per the work being done on the Artificial Intelligence and Data Act. Perhaps regulation will only go so far and businesses will drive the privacy momentum.
Trust is a core input of innovation, and those that prioritize people, not just data, will lead it.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Five Ways Countries Are Responding to Trump’s Tariffs
Tariffs | April 3, 2025
Image: Freepik/rawpixel.com
How Countries Are Responding to Trump’s Tariffs And What Happens Next
On April 2, U.S. President Donald Trump introduced a massive set of new import tariffs. Starting April 5, a universal 10% tariff will apply to all imports coming into the U.S. Additionally, certain countries that the administration considers to have unfair trade practices with the U.S. will face even higher tariffs, between 20% - 49%.
See: Trump’s April 2025 Tariffs and What They Mean for Canada
Canada and Mexico were spared this tariff round but they’re still dealing with a separate 25% tariff that was put in place back in March, which were linked to concerns about fentanyl and border issues. In response, Canada has now fired back with its own 25% tariff on U.S. vehicles that don’t meet USMCA rules (applies to $35.6 billion CAD of imports). This is no longer political jockeying.
So what are other countries doing in response? And how might this play out?
Five Ways Countries Are Responding
Several countries have already responded to the wide sweeping tariffs albeit in noticeably different ways (and strategies):
1. Outright rejection - China (54% tariffs) strongly condemned the move, demanding that they 'immediately cancel' the tariffs. Beijing warned of major disruption to global supply chains and didn't rule out retaliation. April 4 update: China responds to Trump's trade war, China's Finance Minster, "For all imported goods originating from the US, an additional tariff of 34% on top of the current applicable tariff rate will be imposed."China will also escalate restrictions on exporting 'rare earth' minerals to the U.S. Markets plunge further.
2. Warning with possible retaliation - The European Union (20% tariffs) said it would respond in a "legitimate, proportionate and decisive" way.
3. Diplomatic concern, open to talks - Japan (24%), India (26%), Taiwan (32%), and Thailand (36%) expressed concern but stressed willingness to work with the U.S. to find solutions. These responders look to want to preserve economic ties.
See: Digital Export Trends and Global Trade Fintech Opportunities
4. Disappointed but remaining calm - The UK (10%) and Australia (10%) criticized the tariffs as unfriendly and unhelpful but said they would not retaliate. Both are preparing for possible economic fallout while exploring alternative trade options.
5. Direct countermeasures or defensive policies - Canada (sector specific 10-25%) and South Korea (25%) have already taken concrete steps. Canada introduced a matching 25% auto tariff and has announced support for affected sectors. South Korea rolled out emergency support measures for affected industries.
The varying responses highlight how different countries are balancing their economic exposure to the U.S., combining political pressure and long term trade strategies.
How This Could Play Out
We anticipate short term volatility, retaliation, legal/political challenges, shifting supply chains and inflationary pressures:
- Stock markets have already negatively responded to the news, and businesses are scrambling to assess how the tariffs will hit their supply chains and costs, especially key sectors likely to be disrupted such as autos, tech, agriculture, and retail.
- With Canada already retaliating and the EU hinting the same, we may see a global trade war spiral deeper, inflation and recessionary pressures.
- Trump used emergency powers under the IEEPA to enact these tariffs without Congress. That may face court challenges, including push back from within their own party. Meanwhile, allies are lobbying behind the scenes for exemptions.
- Countries may move quickly to find new trade partners and diversify supply chains. Canada is already accelerating trade talks with Europe and Asia and rolling out support for local exporters.
See: Resources for Canadian Resiliency and Competitiveness
- U.S. businesses and consumers may absorb the tariff costs, not foreign exporters. This could push up prices on many goods (and make it harder for central banks to set interest rates). Canadian sectors like auto parts, energy, and food could feel indirect pressure from global realignments.
Conclusion
The April 2 tariffs are just the start. Countries are reacting in their own ways, and the situation is still developing. Canadian fintechs should prepare for uncertainty, but also for opportunity.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Support NCFA by Following us on Twitter!Follow @NCFACanada |
Trump’s April 2025 Tariffs and What They Mean for Canada
Tariffs | April 3, 2025
Image: Freepik AI
Trump's Tariffs Shake Global Trade — Canada Exempt But Still at Risk
On April 2 2025, President Trump announced a massive shift in U.S. trade policy with a litany of universal and country specific tariffs that will affect global trade flows. He declared a 'national emergency' over the U.S. trade deficit, and said that it was a threat to America's national security. The U.S. will now apply tariffs (essentially a tax) on all imports entering the country. While Canada and Mexico were exempt from this round of April 2 'liberation day tariffs', Prime Minister Mark Carney vowed to push back against the existing tariffs currently applied to Canada.
See: What Fintechs Need to Know About New U.S. Tariffs
Uncertainty of global trade has hit global stock markets hard, with broad indexes declining 4%, as investors flee to safe assets. Investors are expecting higher input costs, slower global trade growth and escalating retaliation from affected countries.
President Trump said:
“Our country has been looted by nations near and far. Now it’s our turn to prosper... and use trillions to pay down our debt.”
What Was Announced
- A 10% universal tariff on ALL imports to take effect April 5, 2025.
- Countries deemed to have 'unfair' trade practices with the U.S. will have country specific higher tariffs that will take effect April 9, 2025.
- The tariff rates were calculated based on formal existing tariffs plus “non-tariff barriers” like regulatory restrictions, and then halved.
- A separate executive order on April 2 was signed that removes the “de minimis” exemption for shipments under $800 from China and Taiwan to take effect May 2, 2025. This directly affects platforms like SHEIN and Temu.
- Notably some countries like Russia, North Korea, Cuba and Belarus are exempt from this round of tariffs too, with the administration explaining that they are already facing high tariffs and imposed sanctions which effectively eliminates meaningful trade with those countries.
See this CTV news post for the full list of tariffs by country
| Country | Tariff Rate |
| Cambodia | 49% |
| Vietnam | 46% |
| Sri Lanka | 44% |
| Bangladesh | 37% |
| China | 34%+20% |
| Taiwan | 32% |
| Indonesia | 32% |
| Switzerland | 31% |
| South Africa | 30% |
| Pakistan | 29% |
| India | 26% |
| South Korea | 25% |
| Japan | 24% |
| European Union | 20% |
| Thailand | 36% |
| United Kingdom | 10% |
Exemptions and Overlaps
Canada and Mexico are currently exempt from the new April 2 country-specific and universal tariffs, ONLY if goods qualify under the United States-Mexico-Canada Agreement (USMCA) rules of origin.
However, Canada already faces a separate 25% tariff that was imposed in March 2025 on a broad set of goods and linked to fentanyl enforcement and immigration/border disputes. The 25% tariffs have been partially suspended but not entirely repealed - see White House fact sheet.
Sector-specific tariffs on Canada that were previously announced, such as those on steel, aluminum, autos (starting April 4), copper, and semiconductors, are not cumulative with the April 2 tariffs.
🇨🇦 Canada’s Response “We Will Fight Back”
While some products are still protected under USMCA, other key Canadian exports, such as raw materials, energy products, and manufactured goods — remain vulnerable. PM Mark Carney made it clear that Canada will retaliate "with purpose and force".
Ottawa's game plan includes preparing a set of counter-tariffs, providing emergency support for exporters, accelerate trade talks with Asia-Pacific and the EU, and incentivize domestic production and supply chain innovation (remove interprovincial trade barriers).
Update: Canada Matches U.S. Auto Tariff with 25% Countermeasure - PM Mark Carney announced today that Canada will implement a reciprocal 25% tariff on U.S. vehicles that do not comply with the Canada-United States-Mexico Agreement (CUSMA) to protect Canada's auto sector and its workforce. The new levies will apply to $35.6 billion CAD of imports.
What It Means for Canadian Fintech and SMEs
Broad sweeping tariffs will ignite a trade war and is a risk event for Canadian businesses. Small to medium sized businesses (SMEs) will find it difficult to absorb cost hikes and delays in exporting to America.
See: Canada and Trump Risk Index What Fintechs Need to Know
Fintech platforms in cross-border payments, lending, and logistics can offer supply chain risk and trade compliance tools. E-commerce platforms could see many global vendors move away from U.S-centric trade models.
Looking Ahead
Although Canada avoided the pain of the April 2 tariffs, the risks aren't gone. With a global trade war not afoot, supply chains will shift and Canada will feel the effects either directly or indirectly. Carney's call for a 'new economy' may go beyond just a response and become Canada's national strategy going forward. Brace for volatility and opportunity at the same time.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Support NCFA by Following us on Twitter!Follow @NCFACanada |
Musk Expands AI Power Amidst Twitter Stake Lawsuit
AI | March 31, 2025
Image: Freepik/8photo
$33B xAI-X Merger Deepens Musk’s Control Amid Fraud Lawsuit
On March 282025, Elon Musk announced on X that xAI was acquiring X in an all-stock deal to merge data, computing power, AI models, distribution and top talent under one roof. xAI after the merger is valued at $80 billion. At the time of the acquisition, X was valued at $33 billion (includes $12.5 billion debt).
In many ways, the two companies are already working together in some respects, as xAI's chatbot Grok already uses posts on X to train its systems, and moving forward will likely become a larger part of an AI-powered platform, especially for paying users.
See: Elon Musk’s “Magic Money” Discovery and What It Means
Musk originally bought Twitter for $44 billion in 2022 but since taking over the platform which is now called X, the company's valuation has dropped in value and lost major advertisers.
Fraud Lawsuit Moves Forward
On the same day the merger was announced, a U.S. judge ruled that a shareholder lawsuit alleging securities fraud against Musk directly can proceed. Plaintiffs said Musk ignored a March 24, 2022 deadline to disclose that he had acquired more than 5% of Twitter’s shares, and waited 11 more days before filing with the SEC that he owned 9.2%. According to plaintiffs, that delay saved Musk more than $200 million while other investors sold at lower prices.
Further, U.S. District Judge Andrew Carter said Musk’s filings and tweets like the one jokingly turning Twitter’s logo into Doge could be intentionally misleading and expose Musk to financial penalties while raising questions about transparency and investor protection in large cap private tech deals, especially when ownership and management overlap.
Political Influence
Elon Musk has also waded big time into U.S. politics and is now a senior adviser to Donald Trump’s administration and tasked to consolidate or shut down parts of the federal government via the Department of Government Efficiency (DOGE), sparking significant backlash against DOGE which has extended to Musk's business ventures. National wide protests known as the 'Tesla Takedown' movement have occur at Tesla dealerships. Tesla's stock price has experienced a huge decline, partly because of the public's dissatisfaction with Musk's political involvement including prominent celebrities and politicians.
See: Trump’s Inauguration Marks New Chapter for Tech Giants
Meanwhile,Musk still runs Tesla, SpaceX, Neuralink, and The Boring Company, all of which rely on public contracts or infrastructure. Musk holds an unprecedented mix of public and private power, raising real concerns about accountability, fairness, and how much influence a person should have over technology and the public's agenda.
Why It Matters
This M&A deal is a new kind of vertical integration where tech, compute power, communication and political influence all fall under one roof. Investors, regulators, and the public must deal with the risks and implications of when the same person builds AI models, trains them on global conversations, distributes them on his own platform, and advises political leaders.
It's not just about scale, it's about the infrastructure of influence itself.
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