Can Canadian Entrepreneurs Use the E-2 Visa to Bypass U.S. Tariffs by Opening a Business in the United States?

In recent months, Canadian businesses engaged in cross-border trade have faced growing challenges, including supply chain disruptions and increasing tariffs on goods entering the United States. For many, these costs are eroding profits and limiting growth.

A lesser-known but promising solution is the E-2 Treaty Investor Visa, which enables Canadian entrepreneurs to open and operate a business in the United States—potentially avoiding tariffs altogether by manufacturing, storing, or selling their goods directly from within U.S. territory.

What is the E-2 Visa?

The E-2 visa is a non-immigrant visa available to citizens of countries that have a treaty of commerce and navigation with the United States. Canada is one of those countries, which means Canadian nationals are eligible to apply.

This visa allows a Canadian citizen to:

- Invest a substantial amount of capital into a U.S. business

- Develop and direct the business

- Live in the United States

There is no fixed minimum investment amount, but generally, investments starting from USD $100,000 to $150,000 are considered competitive, depending on the nature of the business.

Why Use an E-2 Visa to Circumvent Tariffs?

Canadian exporters often face duties and tariffs when shipping goods to the U.S. By establishing a U.S.-based entity under an E-2 visa, entrepreneurs can:

- Manufacture or assemble products within the United States

- Store inventory in U.S. warehouses, reducing shipping delays

- Sell directly to U.S. customers through local channels

- Lower transportation costs and improve delivery times

This localized approach not only helps mitigate tariff impacts but also strengthens access to the American consumer base.

Key Eligibility Requirements for Canadians

To qualify for the E-2 visa, a Canadian entrepreneur must:

- Be a Canadian citizen (not just a permanent resident)

- Invest a substantial amount of capital in a real and operating U.S. business

- Be entering the U.S. to develop and direct the enterprise

- Ensure that the business is not marginal—it must generate more than enough income to support the investor and their family or have significant economic impact (e.g., job creation)

- Provide evidence of the source and path of investment funds

What Types of Businesses Are Suitable?

Almost any legitimate business can qualify, including:

- Manufacturing

- E-commerce and retail

- Hospitality (restaurants, hotels)

- Import-export hubs

- Consulting services

Many Canadians start with purchasing an existing U.S. franchise or business to reduce startup risk and streamline the visa process.

If successful, the visa can be renewed indefinitely as long as the business remains operational.

Final Thoughts

While the E-2 visa does not provide permanent residency, it offers a flexible, renewable solution for Canadian entrepreneurs to establish a presence in the U.S., gain direct access to the American market, and reduce their exposure to tariffs and border delays.

As always, it is important to consult an experienced U.S. immigration lawyer to ensure your business and visa strategy complies with all legal requirements.