As economic uncertainty looms due to the trade war between the United States and Canada, some companies are making the decision to relocate north of the border. Changes in trading policies, immigration practices, and energy regulations under the Trump administration have influenced these moves.

Julian Karaguesian, a lecturer at McGill University and an expert on international trade, noted, "Each one has a slightly different context in this larger picture. But they all have the same common theme, that amidst a broader pullback of American companies from Canada, we’re having these small, symbolic victories, which are great at this time when people are hurting."

One notable example is the Siebel Institute of Technology, the oldest brewing school in the Americas, which is moving from Chicago to Montreal after 154 years. The school announced it would relocate to a site near Molson’s original brewery on January 1, 2026. In a social media post, Siebel cited regulatory changes in the U.S. as a key factor in its decision.

"The decision follows a comprehensive review of operational costs, industry trends, and increased student visa challenges to enter the United States," the post stated. This year, the Trump administration made cuts to academic research, reduced the number of visas for foreign students, and increased taxes on some elite schools.

John Hannafan, Siebel’s general manager and director of education, explained, "Recent regulatory changes in the U.S. have made it much more challenging for many of our international students, who have become the majority of our student body, to attend classes in person. This relocation of North America classroom operations to Montreal allows us to pivot without sacrificing the student experience."

While Canada has also reduced its student visas over the past two years, Karaguesian highlighted the different climate in the U.S. regarding foreign students. He said, "The idea that you could potentially be rounded up in the street, even temporarily, by an ICE agent, scared a lot of foreign students. It’s not the Canadian way to go and round up people. And we don’t have anywhere near the kind of anti-foreigner message in our country that’s currently the case in the United States."

Another company making the move is Phillips Distilling Company, known for its Sour Puss liquor. The company recently signed a five-year agreement to produce its product in Montreal after several Canadian provinces stopped stocking American-made alcohol.

Andy England, the company’s CEO, stated, "The vast, vast majority — about 98 percent — is sold in Canada. In many ways, we think of it as being a Canadian brand. All the more reason we should produce it in Canada now." Production began this month at Montreal’s Station 22 distillery.

In a related development, CarbonCapture Inc. has shifted its plans from Arizona to Alberta, Canada. The company was set to build a direct air capture facility in Arizona but changed course after U.S. Energy Secretary Chris Wright terminated billions of dollars in incentives. The facility is now operational in Innisfail, Alberta, in partnership with Canadian company Deep Sky.

Alex Petre, CEO of Deep Sky, attributed the move to "recent changes in the U.S. and I would say the overall political instability." She noted that interest from American companies in Canada has significantly increased over the past year.

Petre commented on the U.S. stance on climate change, saying, "Washington’s stance on carbon capture has really been unclear and sometimes unfavorable in this past year. It’s hard to set yourself up to innovate and to deploy new technology if you do not have regulatory stability, as well as line of sight to how to fund such endeavors."

Karaguesian pointed out that while recent U.S. policies have influenced these relocations, the trend of American companies moving to Canada is not new. He stated, "We should remember that during (U.S. President Joe) Biden it was also bad. The Inflation Reduction Act put a trillion dollars in tax credits to relocate to the United States. Trump is using tariffs. Biden was using subsidies, and that pulled away investment from Canada."

Looking ahead, Karaguesian expressed cautious optimism about future relocations. He said, "I don’t want to read too much into what happens afterwards, but it’s almost some kind of omen of the future direction of international trade. I don’t think we’re going back to deep globalization. And I don’t think the Americans are."

He also highlighted Canada’s potential, stating, "We’re sitting on, per capita, the largest inheritance in the world in terms of natural mineral wealth and natural resource wealth, and the second largest in absolute terms, after Russia. We’re perfect trading partners for East Asia. So that gives me hope that we will be able to offset some of this by diversifying trade."