Canadian businesses are increasing investment and looking for new international markets as companies adapt to continued trade uncertainty, according to the latest assessment from the Bank of Canada.

Bank of Canada Governor Tiff Macklem said business investment increased at an annualized rate of 8.8% in the second quarter of 2026, with companies investing in technology, adjusting supply chains and seeking ways to improve productivity.

The Bank also reported that more than two-thirds of Canadian exporters surveyed plan to expand into new markets over the next two years. Europe and the Asia-Pacific region are among the markets businesses are considering as they broaden their customer base beyond the United States.

Canadian companies have been responding to changing trade conditions by modifying sourcing strategies and reducing exposure to tariffs. Non-energy exports also rose 14.5% in the second quarter, reaching their highest level since early 2025, according to the Bank of Canada.

Technology is another major focus. Businesses are increasingly adopting artificial intelligence and other technologies as they look for productivity gains and new ways to compete.

However, renewed Canada-U.S. trade tensions remain a source of uncertainty. The Bank has warned that continued tariffs could affect investment and hiring decisions.

For Canadian businesses, investment, export diversification and technology adoption are emerging as key areas of adjustment as companies navigate a changing global economy.