Written by Fabien Hammerer, 5REDO CTO.
Canada has obtained a month delay before the US leadership initiates the trade war it’s been edging toward. Canada’s response to initial threats would have levied tariffs on an initial wave of 30 billion dollars worth of products, including pulp and paper, appliances, and cosmetics. A subsequent wave, targeting 130 billion dollars in goods such as vehicles, steel, and aluminum, would have followed. Unsurprisingly, uncertainty is hard for economic agents to deal with and the next episode in only a few weeks is also set to send markets and supply chains into another spin.
The pressing question now is: how can businesses adapt not only to the immediate situation but also to the growing risks posed by political and economic uncertainty?
Last year, we published a blog article highlighting how businesses are increasingly exposed to environmental risks that disrupt supply chains and how circular procurement and circularity integration can act as a mitigating factor. At the time, discussing political risk might have seemed overly cautious, but reality has caught up. Today, a unilateral decision by the world’s largest market is destabilizing global supply chains.
Yet, our conclusion remains valid: circular procurement can serve as a robust strategy for mitigating risk, particularly in times like these. How so?
At their core, tariffs are market distortions designed to create artificial economic effects, such as balancing trade or protecting target industries. And like all market distortions, they create unintended opportunities. With the cost of goods and supplies from the US rising sharply, alternative material sources—previously considered too expensive—may now become viable. This includes secondary materials, or those derived from circular or biological sources. Organizations can use life cycle assessment and techno-economic assessment to evaluate the environmental and economic trade-offs of these alternative materials.
Canada’s circular economy is still in its infancy, with a circularity rate of just 6%. Each year, the country generates a staggering amount of discarded materials that are disposed of without a second life. In 2022, the federal government reported 36.5 million tonnes of solid waste, of which only 27% was diverted. This leaves a huge opportunity for companies to secure materials domestically and build more resilient business models.
While now may not be the time for a complete overhaul of your business model—implementing circular projects and circularity integration initiatives requires time, investment, and careful risk assessment—, this is certainly the moment to explore circular procurement opportunities and assess their long-term benefits in an era of environmental, economic, and political instability.
This is also a time for federal and provincial governments to step up support for circularity. Subsidies for research and development, tax incentives, and public-private partnerships are all avenues worth pursuing to unlock the potential of Canada’s domestic resources and accelerate the transition to a circular economy.
In these uncertain times, Canada has the chance to demonstrate its resilience. A thriving circular economy could become the cornerstone of this resilience, offering a sustainable foundation in the face of an increasingly uncertain trade relationship.
Originating from Barcelona, Laia’s educational journey led her to pursue secondary studies in the south of France. Her Bachelor’s degree in Economics and International Management allowed her to develop an analytical mindset. During her Master’s in International Business and Management, she engaged in numerous research study cases and actively participated in the creation of different business plans. This helped her develop an ability to critically analyze and address the strategic challenges that companies encounter.
Andre has over 5 years of industry experience in project management, polymer and composite processing, materials characterization, and product development. He earned a Bachelor’s degree in Chemical Engineering from the Federal University of Santa Maria, Brazil, and a Ph.D. in Materials Science and Technology from the Federal University of Rio Grande do Sul, where he focused on Polymer and Composite materials. In 2012, he founded a design and manufacturing company specializing in biocomposites made with natural fibers, which he successfully sold in 2015.
As an expert in sustainability, life cycle assessment, circular economy, and green chemistry, Nicolas possesses valuable skills and knowledge that can assist companies in developing and implementing sustainable and environmentally-friendly business models. They can achieve this by utilizing eco-friendly materials, improving manufacturing processes, reducing waste and hazardous chemical use, and advocating for the use of safer and more sustainable alternatives.
Karan is an experienced professional who has worked in multiple geographies and roles along his career. He holds a total of 10+ years of experience in manufacturing operations, and has focused his efforts towards finding solutions for waste recovery and making recovery economical for industries. 
With several years of research experience in France and Canada, Fabien lends his expertise and passion for enzymology and microbiology to 5REDO’s sustainability innovation plans. 
With her significant hands-on experience in developing and characterizing biological and chemical systems, Vicky plays a key role in 5REDO’s efforts toward developing novel products and technologies that offer improved circularity and sustainability to the industry and society. 
As a recent graduate of chemical engineering from the University of Waterloo, Kyle brings his passion for impactful innovation and his experience with novel recycling processes to 5REDO to support our technology development initiatives. 
As our Senior Research Scientist, Hormoz draws on his eight years of industrial and nine years of academic research experience in the areas of polymer science and engineering to develop new solutions for advancing circularity and sustainability.
Shauna is a freelance journalist that covers a wide range of topics, including health, education, the environment, travel, lifestyle trends, and more. She holds a Master of Journalism from Carleton University, and a Bachelor of Arts (Honours) in Global Development from Queen’s University.
By leveraging her expertise in life cycle analysis and process engineering, Ophela helps 5REDO to take a holistic approach to the development of circular solutions and technologies. 
As the co-founder of 5REDO, Forough brings her expertise in supply chain management, business operations, inventory control, and revenue management to support the implementation of circular solutions within different industry sectors.
With a passion for driving change and creating impact, Mahdi co-founded 5REDO to promote circular economy principles in Canada. He’s an alumnus of the 2021 Ellen MacArthur Foundation’s ‘From Linear to Circular Programme.’ Mahdi played a pivotal role in developing and managing the University of British Columbia’s (UBC) Circular Economy Seed Funding program, fostering partnerships between companies and academic researchers to co-create circular solutions.