There is more evidence the deepening political divide between Canada and the U.S. is bleeding into business, with one Vancouver-based company now walking away from a significant opportunity.

Artificial intelligence firm Caseway says it’s pulling out of a high-profile accelerator program in Silicon Valley, citing U.S. tariffs, threats, and consistent 51st State rhetoric.

“Things keep getting worse to the point where the Trump administration is actively threatening Canada,” Caseway CEO Al Vigier told CityNews.

The 15-person company – which builds custom, closed box AI data systems for the legal and defence sectors – was one of just eight Canadian companies selected for the program.

The Agentic and Enterprise AI Canadian Technology Accelerator is run through the Trade Commissioner Service and Global Affairs Canada.

It’s meant to give Canadian companies access to potential investors, business partners, and major industry players.

“We could have raised millions of dollars down there. That’s reality,” Vigier said.

But Vigier – who’s also a Canadian Army veteran – says the worsening relationship with the White House forced him to make a choice.

“This was a chance where we can actually stand up and be like ‘hey, this isn’t right.”

“If the U.S. isn’t going to treat us well, then we’re going to go elsewhere. We have other options and we need to lead by example.”

Vigier adds working in defence also makes the political climate harder to ignore.

“We’re being asked by our partners in Canada: ‘why are you going and expanding into the States right now?’”

Despite pulling out, Caseway is not abandoning the U.S. market, and Vigier stressed the decision is not a criticism of the accelerator program.

But what’s changing is where the company looks for new business.

“Historical thinking is that you have to go to Silicon Valley or you’re going to die. That’s the only way to go as a tech company. I don’t think that’s true anymore,” Vigier said.

“There’s opportunities in the EU, Taiwan, and Canada.”

Vigier says Global Affairs has accepted the company’s withdrawal and did not express anger over the decision.

“It seems like they understand … because they are under the same kinds of pressures where there’s questions about why Canada is investing in growing Canadian companies in the U.S. right now.”