Ottawa tech firm Trellis establishes U.S. entity to shield business from tariffs and trade uncertainty

Trellis, an Ottawa-based advertising software firm that serves Amazon sellers, is establishing a U.S. subsidiary to shield its American operations from tariffs and economic instability as trade tensions mount.

More than 85 per cent of Trellis's business takes place south of the border. The company's U.S. entity will handle American transactions as a subsidiary of the Canadian parent, meaning U.S. customers will no longer interact directly with Trellis's Canadian operation.

"Ever since Trump took office, we felt that we never knew what he could do or not do," Fahim Sheikh, Trellis's co-founder and CEO, told the Ottawa Business Journal. "With the whole unpredictable nature of things, we felt that it was best to actually establish an entity in the States."

The expansion requires company registration, new payment processors, and a physical location. Trellis chose Manhattan for its U.S. headquarters. "Manhattan is an obvious choice because of the image it projects," Sheikh said. "A lot of brands are in New York, so that was my first choice. It's a short flight or drive."

The company held back from expanding to the U.S. during its startup phase due to cost. "If you look at a resource in Canada versus a resource in the States, you're almost looking at a 30 to 40 per cent cost difference, where the resource in the States is more expensive," Sheikh explained. Trellis has recently hired its second U.S.-based employee and plans to add more staff and grow its sales presence in the country.

The firm is also exploring expansion into Europe and Asia, where significant portions of the Amazon market exist. Sheikh said the company's current focus includes China, where he estimates 60 per cent of its potential client base sits.