As the upcoming U.S. election looms closer, Canadian business leaders are grappling with concerns about potential economic uncertainties. A recent report conducted by KPMG in Canada shed light on the fears plaguing 87 per cent of small- and medium-sized businesses in the country. These apprehensions stem from the possibility of the Canadian economy suffering as a consequence of American protectionist policies leading to unfavorable trade deals and increased tariffs.
Key points from the report include:
• 85 per cent of surveyed business leaders are reevaluating their business strategies to brace for a change in leadership.
• Larger Canadian companies and sectors deeply intertwined with the U.S. economy, such as manufacturing, automotive, transportation, warehousing, energy, natural resources, as well as technology, media, and telecommunications, are feeling the impact.
Shaira Nanji, a KPMG Law partner specializing in tax practice, emphasizes the importance of Canadian firms planning ahead to offset potential added costs. She highlights the need to leverage trade relief provisions to maintain competitiveness in an uncertain economic landscape.
The looming presence of protectionist policies in the campaigns of both presidential candidates adds to the unease surrounding Canadian trade. The individual elected to the White House will oversee the review of the United States-Mexico-Canada Agreement in 2026, further intensifying apprehensions within the Canadian business community.
In conclusion, the economic implications of the U.S. election are clear, and Canadian businesses must adapt to navigate these uncertainties successfully. By proactively adjusting their strategies and anticipating potential challenges, businesses can safeguard their operations and maintain competitiveness in an ever-changing economic landscape.
