With a potential trade war looming between the U.S. and Canada, nine in 10 Canadian business leaders “wholeheartedly believe” that the federal and provincial governments “must stand firm in protecting Canada’s sovereignty and values” and that includes fighting tariffs with tariffs even if it hurts their business, finds a new survey by KPMG in Canada.
Over eight in 10 want a targeted, dollar-for-dollar retaliatory response, said KPMG.
“Our poll findings reveal that Canadian business leaders believe Canada must stand firm even if it means being caught in the crossfire,” said Benjie Thomas, Chief Executive Officer and Senior Partner, KPMG in Canada.
“Nine in 10 business leaders across the country want the federal and provincial governments to take immediate steps to eliminate inter-provincial trade barriers, reform the tax system, provide incentives to onshore, and encourage Canadians to ‘Buy Canadian’ – in short, they want a stronger, more resilient country.”
While 80 per cent are now preparing or bracing for a recession, 81 per cent are willing to endure the short-term pain of retaliatory tariffs if Canada can negotiate a fair deal that protects the country’s trade-based economy, independence and sovereignty. In a 2019 analysis, the Bank of Canada estimated a 25 per cent tariff by the U.S. on all imports from Canada and other countries, along with retaliatory tariffs, would cut global gross domestic product (GDP) by 3 per cent and Canada’s by 6 per cent. The bank will publish a new analysis of tariffs today, added KPMG.
“With more than half (56 per cent) saying they will be forced to lay off employees if tariffs are imposed, 80 per cent agree the federal government should support Canadians whose jobs are disrupted or lost with pandemic-style aid.
“KPMG just completed a survey of 250 business leaders across Canada to gauge their reaction to U.S. President Donald Trump’s tariff threats and what actions, if any, they had already taken or were planning to take. Eighty-eight per cent of the companies surveyed export or sell to the U.S. and 81 per cent say their business will be impacted by U.S. tariffs.”
Key Poll Findings:
- Nine in 10 of 250 Canadian business leaders “wholeheartedly believe” that the federal and provincial governments “must stand firm in protecting Canada’s sovereignty and values”
- This is consistent across the country, with 96 per cent in Alberta, 90 per cent in Quebec, 88 per cent in Ontario, and 82 per cent in B.C.
- 85 per cent believe Canada should fight U.S. tariffs with retaliatory tariffs
- 88 per cent in Quebec, 86 per cent in Ontario, 79 per cent in B.C., and 76 per cent in Alberta
- 94 per cent say Canada and the 13 premiers must show a united front to the U.S.
- This is consistent across the country, ranging from 95 per cent in Quebec, 94 per cent in Ontario, 92 per cent in Alberta, and 88 per cent in B.C.
- 82 per cent want a targeted, dollar-for-dollar retaliatory response
- 80 per cent are preparing or bracing for a recession this year
- 60 per cent say they can withstand a prolonged trade dispute with the U.S.
- 90 per cent say it’s time to eliminate inter-provincial trade barriers
- 88 per cent want governments to encourage domestic production, onshoring where possible
- 90 per cent want government to encourage Canadians to “Buy Canadian”
- 85 per cent say the federal and provincial governments must reduce business taxes and reform the tax system to stay competitive with future U.S. tax reform
- 56 per cent say they will have to lay off employees if tariffs are implemented
- 80 per cent agree the federal government should reintroduce income supports similar to those offered during COVID to help Canadians whose jobs are disrupted or lost due to tariffs, yet 79 per cent are concerned about the related inflationary impacts of increased fiscal spending if a “bailout fund” is created
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