While this is a U.S.-driven policy, its effects spill over to Canada. Canadian dropshippers and small businesses used to benefit from a favorable exchange rate, selling into the U.S. market and profiting from the weaker Canadian dollar. Those days may be over. Few will see value in keeping operations based in Canada when setting up a warehouse across the border eliminates the hassle. Worse, Canada’s regulatory climate—especially its aggressive Net Zero agenda—makes local entrepreneurship less attractive with each passing year.