The closer the US election gets, the more (87 percent) Canadian business leaders fear the Canadian economy could become “collateral damage” from rising American protectionism, leading to less favorable trade deals between the countries and higher tariffs, a new KPMG Canada survey says.
The KPMG Private Enterprise™ Company Survey 2024 of 735 small and medium-sized enterprises (SMEs) shows that business leaders are increasingly concerned that rising protectionism and the potential for major trade and policy changes south of the border will harm the Canadian economy. Because of these concerns 85 percent of executives are rethinking their business strategies to prepare for a leadership transition to mitigate risks and capitalize on opportunities.
Concern about the potential for major trade and policy changes south of the border is most widespread among larger Canadian companies and sectors that are heavily integrated into the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well Technology, media and telecommunications industries.
“As geopolitical shifts reshape global trade relationships, Canadian companies that previously had largely unfettered access to U.S. and international markets must deal with increasing protectionism and additional costs such as tariffs and tariffs, said Shaira Nanji, partner in tax at KPMG Law. “With the prospect of further economic and trade policy changes, Canadian companies that are highly active in the U.S. must look for ways to mitigate additional costs and take advantage of potential trade facilitations to remain competitive.”
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