What You Need to Know
• Matteo Sgaramella, owner of Outclass, is attending trunk shows in Paris to reach European customers.
• A Canadian Chamber of Commerce report identifies Oshawa, London, and Kitchener-Cambridge-Waterloo as vulnerable regions.
• Foreign direct investment in Canada reached C$96.8 billion in 2025, the highest since 2007.
Matteo Sgaramella, the owner of the Toronto-based menswear clothing company Outclass, has shifted his focus to attending trunk shows in Paris instead of New York to attract more European customers. He reported that the reception has been positive, with European retailers eager to support Canadian products amid the ongoing trade tensions with the United States. Conversely, some businesses in Ontario, particularly in manufacturing, are struggling to diversify their markets, with a recent Canadian Chamber of Commerce report highlighting Oshawa, London, and Kitchener-Cambridge-Waterloo as particularly vulnerable due to their heavy reliance on the US market. Despite these challenges, foreign direct investment in Canada reached C$96.8 billion in 2025, marking the highest inflow since 2007, while the country’s GDP grew by 3.3% in the second quarter of 2026, alleviating recession concerns for the time being.
Why It Matters
This story highlights the challenges and adaptations of Canadian businesses in the context of trade relations with the United States. While some companies, like Outclass, are successfully finding new markets in Europe, others remain heavily dependent on the US, which poses risks to their economic stability. The Canadian Chamber of Commerce’s identification of vulnerable regions underscores the uneven impact of trade dynamics on different sectors. Additionally, the significant foreign direct investment inflows and GDP growth indicate a broader resilience in the Canadian economy, which is crucial for sustaining business operations and employment.
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