Many Canadian business leaders are concerned about economic uncertainties related to the looming U.S. election, a new report says.
The KPMG Canada survey of 735 small and medium-sized businesses says 87 per cent fear the Canadian economy will become “collateral damage” from U.S. protectionist policies that lead to less favorable trade deals and higher tariffs.
Because of these concerns, 85 per cent of Canadian business leaders surveyed are reviewing their business strategies to prepare for a change in leadership, she says.
Concerns are primarily felt by major Canadian companies and sectors that are highly integrated with the US economy, such as manufacturing, automobiles, transportation, storage, energy and natural resources, as well as technology, media and communications.
The potential for further changes in U.S. economic and trade policies means some Canadian companies will need to look for ways to mitigate additional costs and take advantage of potential trade relief provisions to stay competitive, says Shira Nanji, a law partner with KPMG in its tax practice.
Both presidential candidates have campaigned on protectionist policies that could create uncertainty for Canadian trade, and whoever takes over the White House will be in charge during the review of the U.S.-Mexico-Canada Agreement in 2026.
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