Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Fintech International
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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Win Free Tickets to Consensus 2025! NCFA Pitch the Future Contest
Consenus 2025 | April 7, 2025
🔥 NCFA Ticket Giveaway Campaign 🔥 Win a Free Pro Pass to Consensus Toronto 2025!
NCFA Canada is excited to be an official Community Partner for Consensus Toronto 2025, happening May 14–16 at the Metro Toronto Convention Centre. Produced by CoinDesk, Consensus is the world’s most influential gathering of leaders in blockchain, crypto, Web3, and digital finance—bringing together founders, regulators, investors, policymakers, developers, and creators from around the globe.
See: Consensus 2025 Toronto | Spotlight on Canadian Speakers
With the conference just over a month away, we’re celebrating by launching the “Pitch the Future” Ticket Giveaway Contest — your chance to win a FREE Pro Pass (worth $950 USD) and join the action in Toronto alongside thousands of Web3 innovators.
Have a bold idea, future trend, or big vision? Building something cool and want to share it with the world? Tell us why you should be there, and you just might be!
🚀Pitch The Future Contest Details
1. WHEN
The ticket giveaway runs from now until April 30, 2025
2. ELIGIBILITY
To be eligible to participate, follow both NCFA and @consensus2025 on at least one of our social channels like Instagram, X, Facebook or @CoinDesk #Consensus2025 on LinkedIn, depending on where you post your entry.
3. HOW TO ENTER
Post any one of the following (we’re keeping it flexible and fun!):
- 🔮 A bold idea or prediction about the future of Web3, fintech, or crypto
- 🛠️ A quick description of what you're building or working on
- 🙋♀️ A few words on why you want to attend or why you should win a free ticket
Your pitch can be a short video, text post, image, or attachment—we’re open to creative formats!
➡️ Be sure to tag @ncfacanada and @consensus2025 and use the hashtag #Consensus2025.
4. WINNER SELECTION and DISTRIBUTION
- 🎉 Two winners will each receive One (1) Pro Pass to Consensus 2025
- Winners will be announced on May 1, 2025 via NCFA’s website and social channels
- Winners will be contacted privately and must confirm attendance.
- If unconfirmed within a reasonable time, an alternate winner may be selected.
5. 🔁 Social Sharing Best Practices
Help spread the word and support the community:
- Tag @consensus2025 on X
- Tag @CoinDesk on LinkedIn, Facebook, and Instagram
- Use #Consensus2025 in all contest-related posts
- Encourage your network to follow NCFA and Consensus Toronto for future updates
🔔 Don’t Miss Out!
Whether you're building the future, predicting it, or just hungry to be part of it, this is your shot to join the global Web3 community at Canada’s biggest crypto event of the year. Get your post up before April 30, and we’ll see you in Toronto!
See: 🚀 Join NCFA at Consensus 2025 Toronto May 14-16
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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OSFI Approves Santander for Canadian Banking License
Banking License | April 7, 2025
Image: Freepik/rawpixel.com
Banco Santander Is Now a Canadian Bank
After almost a six year wait, Banco Santander has secured a Schedule II banking license in Canada, an achievement that could ramp up digital competition in banking. Santander first applied for a Canadian banking license back in July 2019. After a long multi-year regulatory process, Santander received letters patent from Canada’s Minister of Finance in June 2024, a required step to establish a new bank under federal law. Last weekend in the official government gazette newsletter, stated that the Office of the Superintendent of Financial Institutions (OSFI) issued an order for Santander to 'commence and carry on business early last month - meaning its clear to operate.
Santander is the largest bank in Spain (and one of the largest in Europe), and the new license will allow it to offer full retail banking services, such as deposit taking, lending, credit cards, and wealth management products and services. This approval places Santander alongside other foreign banks operating as Schedule II subsidiaries in Canada , such as Citibank Canada, ICICI Bank Canada, Amex Bank of Canada, and others. It also raises fresh questions about the future of competition, digital transformation, and fintech collaboration in Canada’s tightly held banking industry.
From Auto Loans to Full Retail Banking in Canada
Although the Canadian banking license is new, Santander has been operating in Canada for more than a decade by acquiring Carfinco Financial Group, a company focused on automobile financing. So Santander already has a foothold in the Canadian market but now with a retail banking license, they can now expand offerings.
See: Founder Salaries: Insights from Europe, U.S., and Canada
Santander bank is already a major player in Europe and Latin America, and it operates in the U.S. and Mexico through a mix of consumer lending, auto finance, and digital-first retail banking. From Banco Santander's 2024 Annual Report, here's what sets them apart:
- €12.57 billion in net profit in 2024
- Over 168 million customers worldwide
- A return on tangible equity of 16.3% (one of the strongest in global banking)
- Ranked 16th globally by total assets
Its Canadian strategy definitely won't be going toe to toe against incumbent banks like RBC, Scotia or BMO by opening up hundreds of physical branches. Santander is more likely to curate niche offerings in personal finance and use its robust digital infrastructure to scale quickly and efficiently.
A Market Where Entry Is Rare, Not Impossible
According to The Logic, Santander’s license is one of just 11 new federal banking licenses granted in Canada over the past 10 years. So, yes this license is pretty big news to competition aficionados.
Recently on March 4 2025, President Trump complained on his Truth Social platform that "Canada doesn’t allow American banks to do business in Canada, but their banks flood the American market. Oh, that seems fair to me, doesn’t it?” However this is not really accurate given that there are at least a dozen of U.S. Financial Institutions currently operating in Canada including 3 who also have a schedule II license the same as Santander.
So, U.S. banks can operate here in Canada but they face regulatory and market challenges, since foreign banks must either collaborate with a Canadian partner, setup a Canadian subsidiary, or get government approval to do business here. There are also foreign ownership restrictions preventing them from acquiring Canadian banks and their licenses outright. Canadian consumers may also prefer working with one of the big six Canadian banks or the inherent trust of walking into a physical branch.
See: Canada Post Launches Postal Banking With KOHO
The door to a banking license isn't locked for qualified foreign banks but they'll need to meet rigorous standards of risk management and governance. Santander's success in receiving a Canadian banking license may open the pathway for more foreign digital-first banks interested in entering Canadian markets.
Santander's Digital Platform and Partnership Potential
Santander is bringing more than just capital and niche retail services to Canada. They have a fully developed digital platform and a strong history of working with financial technologies. They even have their own fintech division that operates PagoNxt, their global payment service offering with tools for merchants and embedded finance features that can be integrated into both banking and non-bank platforms.
Santander also owns Openbank, which has grown into Europe’s largest digital only bank by deposits.
See: Will Competition Reforms Boost Fintech? Inside the Fight
As of May 2022, Santander had moved over 80% of their global it infrastructure to the cloud, which means they are a cloud-native system that can launch products quickly, iterate, and experiment with tools that traditional banks would likely take years to develop (without similar infrastructure).
For fintechs working on API based banking, automated lending and other similar innovative and novel products and services, Santander could be more than a competitor but a potential partner who can bring capital, research, and tech enablement all in one place, and ready to go.
Open Banking Would Boost Santander and Fintech Growth
Is Santander's license approval tied in some way to Canada's imminent open banking rollout (expected in 2026) or the need to diversify and strengthen Canada's economy?
While the timing is certainly interesting, and there may be some nuanced reasons into the approval of Santander's license, we'll refrain from any speculation and just reiterate that when consumer-driven finance finally arrives in Canada, it will help newer brands like Santander to connect with more customers, offer new products/services, and deepen financial relationships, all powered by artificial intelligence and cloud-native systems.
See: Robinhood’s WealthTech Push and Lifestyle Finance
As Investment Executive noted, Canada's largest banks have long benefited from their exclusive access to consumer data. Open banking could begin to shift that balance. And let's be clear, that shift will take time but open banking may certainly allow for more experimentation, more competition, and more chances for fintech firms and digital banks like Santander to connect with customers in new ways.
Take Aways
For NCFA's community, Santander’s arrival is a sign that the ecosystem is evolving. Canada’s financial future is bound to become more digital, more connected, and hopefully more competitive than ever. For fintech firms building in lending, onboarding, or data innovation, now is the time to explore how players like Santander could support growth through partnership.
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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Programming Trends 2025
April 7, 2025
We can only compare the modern pace of life to the rapid development of technology. Everything is constantly changing and evolving; you risk becoming obsolete if you don't keep up with these changes. That's why we at Muteki Group have compiled a short article with programming trends 2025. This will help you incorporate new strategies into your development plan for this year.
Additional Power: Muteki Group CTO as a Service
Strategic leadership is vital for enterprises looking for effective scaling in 2025. Not all startups and small businesses can afford to hire a full-time high-level Chief Technology Officer (CTO) throughout the development cycle. In reality, the role of a CTO is often only necessary at specific strategic points during development. Our experience working with businesses of various sizes has shown us that even skilled development teams benefit from having strategic leadership on their projects. A practical solution to this dilemma is outsourcing this role and choosing Muteki Group CTO as a service.
By collaborating with Muteki Group, you can take advantage of our CTO as a Service, which allows you to access strategic leadership on a subscription basis. This approach means you only engage a CTO as needed, helping you avoid the financial burden of a full-time hire, and only pay for the hours when the CTO is actively working on your project. Additionally, if your project's needs change and require a CTO with different expertise, we can provide you with a suitable candidate.
We offer three packages for our CTO as a Service: full-time, part-time, or on-demand cooperation, allowing you to invite a specialist whenever you need one. This flexible cooperation model ensures you have the strategic leadership necessary to thrive in a rapidly evolving technological landscape.
Programming trends 2025
The programming is evolving due to the influence of AI, the increasing demand for quicker project launches, and the rise of low-code platforms. These significant trends are set to shape the industry's future. Let's explore the most impactful trends that are expected to affect the whole 2025 year.
1. AI is changing how software is developed, tested, and maintained. Developers want to maximize their work routines with AI by delegating simple functions. On the other hand, the positive news is that developers will have time for more creative tasks. At Muteki Group, we have a free AI consulting service that will allow you to understand which areas AI will be effective for your business in 2025.
2. Low-code platforms let users you develop some simple functions without needing programming skills. Their popularity is growing because they offer flexibility.
3. Cloud development is becoming the industry standard, especially with the rise of microservices. By 2025, edge computing—processing data closer to users—will help improve the performance of Internet of Things (IoT) devices and real-time applications.
4. As cyber threats increase, security is now a key part of software development. The more user data a business handles, the stricter the rules it must follow to protect that data. For financial projects, blockchain has become a trend because it offers a secure way to handle transactions and verify identities.
5. Users want fresh experiences, which is why virtual reality (VR), augmented reality (AR), and IoT will still be in demand in 2025. At Muteki Group, we assist companies in adapting to this new landscape, from choosing the right platforms to creating engaging experiences.
6. The push for environmental friendliness is changing how developers use technology. Green coding means optimizing software to lower energy use, making apps better for the environment.
2025 year brings some tech changes and we must use these changes to our advantage. Technology will keep evolving, and businesses must keep up with trends to provide the experiences users want. This includes using AI, VR, AR, and the Internet of Things, as these technologies can offer more than standard mobile apps or websites.
See: Disruptive Innovations Driving Global Change in 2025
You need strong leadership and a skilled, dedicated development team to implement your tech idea to stay competitive entirely. At Muteki Group, we have been building dedicated development teams since 2015. We access the Ukrainian IT market, allowing us to develop a team that meets your specific needs at brilliant rates. Contact Muteki Group to develop innovative solutions!
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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Klarna Delays IPO As Markets React to Trump’s Tariffs
Financing | April 4, 2025
Image: Stock Markets Since Trump's Inauguration (New York Times)
Klarna Delays U.S. IPO Plans After Trump’s Tariffs Break Markets
As Reuters and Wall Street Journal reported, Swedish fintech giant Klarna is now delaying its U.S. IPO plans after President Trump's wide sweeping universal tariffs and country specific tariffs were announced on April 2, just two days prior, triggering heavy market volatility and declining market pressures.
See: Five Ways Countries Are Responding to Trump’s Tariffs
Klarna, known for its "buy now pay later" services (BNPL) was preparing to go public on the New York Stock Exchange under the ticker symbol KLAR but has delayed the launch saying it's due to uncertainty in the market environment. In its filing, the company flagged global trade policies and tariffs as a potential risk that could hurt consumer spending and merchant revenues, both are important for Klarna's business model.
Klarna's filing said:
"A downturn in the general economic environment or a slower pace of economic growth, including as a result of changes in international trade policies... can lead to decreased consumer spending and adversely affect the financial condition of our merchants."
What It Means for Fintech and Investors
Trump's tariffs have no doubt damped investor confidence. Klarna's delay is a setback for the fintech sector and anyone looking for a rebound in IPO activity. Klarna is one of the most high profile fintechs in Europe, and its imminent U.S. IPO listing was closely watched as a measure of investor confidence in the BNPL model.
See: 10 Fintech and Crypto IPOs 2025 – Boom or Bubble?
This IPO freeze highlights how geopolitical risks can directly impact fintech growth and public market access. With President Trump's protectionist policies, global fintechs looking to operate and access U.S. markets will now face new layers of risk and potential setbacks.
Conclusion
The current U.S. IPO environment is in a fragile state due to uncertainty and unpredictability of policy driven market shocks.
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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Circle Files for IPO as Crypto Firms Eye Wall Street
Initial Public Offering | April 3, 2025
Image: Freepik/rawpixel.com
Circle’s IPO Test Pure Stablecoin Model on Public Markets
The company behind the USDC stablecoin, Circle, has filed to go public on the New York Stock Exchange under the ticker CRCL, looking to raise capital in public markets at a valuation between $7 billion and $12 billion, according to Lex Sokolin’s breakdown.
In 2024, Circle reported $1.66 billion in revenue and $156 million in net income, with details confirmed in its S-1 filing and reviewed by Financial Times. Mostly all of its revenue is earned interest on USDC reserves that is held in safe money market funds managed by BlackRock.
Fortune reports that Circle's IPO is expected to be late April.
Circle Has a Low Risk Model But Rising Costs
This is a low risk, high compliance model which aims to keep all USDC reserves fully backed and avoids higher risk strategies. Its approach has earned credibility with regulators and institutional partners but with lower risks comes tighter margins.
See: Stablecoins Are Growing Faster Than You Think
Last year, Circle paid almost a $1 billion in fees and incentives to distribution partners like Coinbase that help drive adoption. As Sokolin points out in his analysis, these distribution costs are rising fast and now Circle's profitability is under pressure. So despite solid revenue growth, the company is making less profit, not more.
Competitor Tether Is Earning Way More by Taking Risks
These profits were primarily derived from investments in assets like U.S. Treasury bonds, Bitcoin, and gold. This figure places Tether's profitability on par with major financial institutions such as Goldman Sachs. By comparison the revenue gap between Circle and its main rival, Tether (USDT) is wide. Tether generated $13 billion in profit last year by taking on more risk and investing in assets like U.S. Treasury bonds, Bitcoin, and gold.
Pro-Crypto Politics but Trade War Creates Uncertainty
President Trump previously said he wants to make the U.S. “the crypto capital of the planet" and has issued a flurry of pro-crypto executive orders since taking office, such as the U.S. establishing a strategic Bitcoin reserve, and digital asset stockpile. Also, the SEC has slowed down it's regulation by enforcement campaign and is moving to establish a comprehensive framework to regulate stablecoins and digital assets.
So the political environment has opened the IPO window for crypto firms like Circle and crypto exchange Kraken (Payward Inc planning IPO for 2026). However, not all of Trump's policies are benefiting the crypto economy. The broad sweeping universal and country-specific tariffs announced April 2, 2025 for example, of applying import taxes for all goods entering U.S. markets as high as 60% for some countries, have sparked concerns about inflation, trade retaliation, shifting supply chains, and slower global growth, hurting investor confidence.
See: Circle Becomes First Stablecoin to Meet Canadian VRCA Rules
For a company like Circle that depends on interest income for it's revenue, a volatile economic environment poses real risks. Circle has exited its other businesses and is a pure stablecoin operator that is banking on the integrate of its USDC stablecoin into the global financial system and digital commerce markets.
Why It Matters
Since Circle doesn't lend, doesn't diversify, doesn't offer other financial services, it's a pure stablecoin play so it'll be interesting to see how much capital it raises during it's IPO in the current climate. That is, it's a real time case study to see if a low risk, transparent and crypto-native company model can succeed on public markets, especially as it faces rising costs, strong competition, and uncertain global headwinds.
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 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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