Amidst growing tension over impending tariff threats from the United States, Canadian business leaders are gearing up for a potential trade war. A recent survey conducted by KPMG in Canada revealed that the majority of Canadian business leaders are in favor of a targeted, dollar-for-dollar retaliatory response if the U.S. follows through with its tariff plans. Here is an overview of the key findings from the survey:
- A staggering eight in 10 Canadian business leaders are anticipating a recession but are willing to endure short-term challenges in order to secure a fair deal that safeguards Canadian interests.
- The survey emphasized the importance of unity among Canadian businesses, with a resounding call for Canada to stand firm and fight back against any threats to its economic stability.
- Despite concerns about a potential trade war, six in 10 businesses expressed confidence in their ability to withstand prolonged trade tensions.
As the possibility of a trade war looms, Canadian businesses are strategizing ways to mitigate the impact of tariffs. Here are some key suggestions put forth by business leaders:
- 90% of businesses are advocating for the removal of interprovincial barriers to facilitate smoother trade within the country.
- Many businesses are urging the government to promote domestic production and encourage consumers to prioritize Canadian goods through initiatives like “Buy Canadian.”
- Creating a competitive environment compared to the U.S. is crucial, including implementing a favorable income tax structure, dismantling provincial trade barriers, and enhancing incentives for onshoring operations within Canada.
In light of the uncertainty surrounding potential tariffs, businesses are advised to proactively assess the impact of such measures on their operations. Instead of waiting for tariffs to be imposed, companies should engage in scenario planning to understand the potential implications and inform their decision-making process.
As Canadian businesses brace themselves for the prospect of a trade war, the key takeaway is the importance of preparation and unity. By taking preemptive actions and aligning strategies to navigate uncertain times, Canadian businesses can position themselves to compete effectively on the global stage. Let’s ensure we are ready to tackle any challenges that come our way and safeguard Canadian interests in the face of trade threats.
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