Donald Trump’s parade of escalating tariffs pose a threat to the Canadian space industry, but offer some opportunities as well.
That’s the point of view of Brian Gallant. He is the CEO of Space Canada (and former Premier of New Brunswick), the national industry trade association. In this exclusive interview with SpaceQ, Gallant provides a frank assessment of this threatening situation.
SpaceQ: What would be the potential impact of tariffs on the Canadian space industry?
Brian Gallant: Tariffs and counter-tariffs would serve to fundamentally increase the cost of doing business for Canadians and Americans alike in virtually all industries, including the space sector.
A trade conflict would make it more difficult for the Canadian and American space ecosystems to work together, which is unfortunate as there is a lot of collaboration to be had between the two countries.
For Canadian space businesses selling products or services to American customers, the contracts could be at risk either by becoming financially untenable or not being renewed, or they could see cost inputs come at a premium price which shatters the profit margin.
Ultimately, tariffs and counter-tariffs would make Canadian space businesses less competitive.
SpaceQ: How severely have Trump’s trips to the brink of tariffs rattled people in the industry in Canada?
Brian Gallant: Those in the space sector share the general sentiment of Canadians. One day we are a part of what is arguably the best and most mutually beneficial economic relationship between two countries in history. The next day, we find ourselves on the precipice of falling into a massive trade conflict with the United States, which will immensely weaken both our economies.
Those in the space sector — like those working in other industries in Canada — were rattled, to say the least.
SpaceQ: What steps need to be taken to protect the Canadian space industry from U.S. tariffs?
Brian Gallant: Trump has frequently linked the need for tariffs to Canada not doing enough on security and defence. The federal government has presented a border security plan that provided an off-ramp for Trump in the form of a month-long pause on the tariffs.
The federal government should provide a similar off-ramp before the end of the pause on tariffs in the form of a credible plan to soon meet its NATO commitment, to invest the equivalent of at least 2 percent of GDP on defence. Space-related defence capabilities is a good place to focus such investment as they can be delivered by the Canadian space industrial base quickly.
It is in Canada’s best interest to do so as investments in space capabilities for monitoring, communication, and defence can help protect Canada’s sovereignty, North America, and the Arctic — which Trump has said is a priority.
SpaceQ: On the positive side, what impetus does the threat of tariffs provide for Canada to develop its own homegrown space industry, including launch and launchpad capabilities?
Brian Gallant: The threat of a trade conflict with the United States has sparked a dialogue in Canada about how we further protect ourselves from such a challenge in the future. Many are calling for Canada to undertake serious action to become a more competitive economy.
Investments in Canada’s space ecosystem will help. Investments in space mean investments in innovation from research to intellectual property, from AI to advanced manufacturing, from robotics to closing the digital divide — all things that will help Canada’s traditional and emerging industries compete.
The Canadian space ecosystem creates the jobs of the future and includes some of our most innovative businesses, researchers, and minds developing world-class space-based radar Earth observation, satellite communications and operations, space robotics, emissions monitoring, space object tracking and identification – and spaceports which will soon give Canada the important domestic capability of commercial space launch.
SpaceQ: What does industry and the federal government have to do to give Canada sovereign access to space, and protection from U.S, attacks like the ones we’ve just seen?
Brian Gallant: Canada should put forward investments and policies to further develop sovereign space capabilities to ensure our space sector can compete and collaborate on the international stage, but also so Canada can go at it alone if and when needed.
The federal government should also accelerate the delivery of large existing programs, undertake a review of space related procurement, develop a dedicated Commercial Space Strategy for Canada, modernize Canada’s regulatory framework for space to keep pace with other countries, and forge further international collaboration with allies, including hopefully strengthening the relationship with the United States.
