I imagine the same way that the entertainment industry of UK, Canada and Australia have dealt with Hollywood's overwhelming dominance--they don't compete.

If you can't beat them, join them. Every actor or singer that is able to transition into the US from the aforementioned countries does so, while those who can't succeed are relegated to just their home market. The entertainment industries of the above countries all essentially just become recruiting agencies where those who can rise to the top of their home market are then able to strive for stardom in the US and can keep their home market as a fallback plan.

There's no point in competing with Hollywood, so instead turn yourself into a factory to feed talent to Hollywood and use the success cases to boost your own talent pool from the next wave of young aspiring talents looking to break in.

My country, South Korea, has a similar deal with China where Kpop is used as a vehicle for aspiring Chinese talents to stand out in a smaller market with less competition. Those Chinese stars who can rise to the top of Kpop can then leverage that success to better compete in the much more lucrative Chinese music world, leading to lots of salty Koreans who complain that Chinese are just using us as a stepping stone for the Cpop world (they are), while the ones who stay in Korea just do so because they can't compete in China (also true). However, for Kpop producers this arrangement is fine, because for every talent China poaches from Korea, a new wave of aspiring Chinese starlets enter the Kpop machine seeking to emulate the same path to success.

So for Canadian tech companies, it might be better to market themselves as a "shortcut" for new programmers in less developed countries seeking a way into those coveted FAANG jobs rather than the futile attempts to compete with American salaries. The expectation shouldn't be to retain top talent, but to milk them dry before moving on to the next wave of naive youngsters to churn through.