Canada Tightens Foreign Investment Rules Following U.S. Tariffs

New guidelines aim to protect Canadian companies from 'predatory' takeovers during heightened trade tensions with the U.S.

The Canadian government has expanded its foreign investment review criteria to include economic security as a national security concern.
Prime Minister Justin Trudeau and Innovation Minister François-Philippe Champagne emphasized the need to shield Canadian firms from opportunistic takeovers caused by reduced valuations during the trade dispute.
The updated rules under the Investment Canada Act are seen as a direct response to sweeping tariffs imposed by U.S. President Donald Trump on Canadian goods.
The changes signal increased scrutiny on foreign investments, particularly from the U.S., which is Canada's largest source of foreign direct investment.
Legal experts warn that the stricter guidelines could deter foreign investments, despite Canada's reliance on such capital for economic growth.