Canadian Business Leaders Urge Government to Fight Tariffs with Tariffs in KPMG Survey
A recent KPMG survey has revealed a strong consensus among Canadian business leaders: they want the federal government to take a firm stance against U.S. tariffs by imposing retaliatory measures of equal magnitude.
The survey, which polled 250 business leaders across Canada, found that the vast majority—80%—support a dollar-for-dollar response if the U.S. follows through on its tariff threats. This stance reflects a growing sentiment among Canadian executives to stand firm against what many perceive as unfair U.S. trade policies.
Despite the likelihood of economic disruption, business leaders are prepared to endure short-term challenges. Eight in 10 respondents expressed concern about an impending recession but emphasized the importance of negotiating a fair deal that safeguards Canadian interests.
The call for retaliation is not just about economics; it’s also about unity. A striking 94% of survey participants highlighted the need for a coordinated response between Ottawa and the 13 premiers. This emphasis on a united front underscores the belief that a fragmented approach would weaken Canada’s position in trade negotiations.
Interestingly, six in 10 businesses indicated they could withstand a prolonged trade war, suggesting a level of resilience within the Canadian economy. This confidence, however, does not diminish the urgency of the situation. With U.S. tariffs potentially taking effect as early as February 1, the stakes for Canadian businesses and policymakers are higher than ever.
“The message from business leaders is clear,” said Joy Nott, a partner in KPMG’s trade and customs practice. “They want the government to stand firm, fight back, and present a united front. This is not just about tariffs—it’s about protecting Canadian interests in the face of escalating trade tensions.”
Canadian Business Leaders Urge Government to Fight Tariffs with Tariffs in KPMG Survey
The KPMG survey underscores the urgency of the situation, as the U.S. has indicated that tariffs on Canadian goods could be implemented as early as February 1. This deadline has prompted both federal and provincial governments to intensify their preparations for a potential trade war. With tensions escalating, the need for a coordinated and strategic response has never been more critical.
Central to the survey’s findings is the overwhelming emphasis on unity. Ninety-four percent of respondents stressed the importance of a united front between the federal government and the 13 premiers. This near-unanimous view reflects a broader recognition that a fragmented approach would weaken Canada’s negotiating position and leave the country more vulnerable to U.S. trade pressures.
Despite the challenges ahead, the survey reveals a sense of resilience among Canadian businesses. Six in 10 respondents indicated that their organizations could withstand a prolonged trade war, suggesting that many firms have developed strategies to navigate the uncertainty. This preparedness, however, does not diminish the potential risks of a protracted trade conflict, particularly for smaller businesses and industries heavily reliant on U.S. markets.
Joy Nott, a partner in KPMG’s trade and customs practice, highlighted that the survey’s results reflect a clear mandate for the government. “Business leaders are not just asking for retaliation; they are demanding a strategic and unified approach to protect Canadian interests,” Nott said. “The message is clear: stand firm, fight back, and do so with a coordinated effort that reflects the strength of the nation.”
As the February 1 deadline looms, the survey serves as a rallying cry for policymakers to act decisively. With the majority of business leaders willing to endure short-term economic pain for long-term gains, the stage is set for a high-stakes showdown between the two nations. The coming weeks will be pivotal in determining whether Canada can negotiate a fair deal while maintaining its economic resilience in the face of U.S. tariff threats.
Conclusion
The KPMG survey highlights a resounding call to action from Canadian business leaders: they want the federal government to take a strong, unified stance against U.S. tariffs. With 80% of respondents supporting dollar-for-dollar retaliation and 94% emphasizing the need for a coordinated approach, the message is clear—Canada must stand firm to protect its interests. While the road ahead may involve short-term economic challenges, the majority of businesses are prepared to weather the storm, demonstrating resilience and a commitment to long-term prosperity. As the February 1 deadline approaches, the government must act decisively to negotiate a fair deal and maintain economic stability in the face of escalating trade tensions.
Frequently Asked Questions
What does the KPMG survey reveal about Canadian business leaders’ stance on U.S. tariffs?
The survey shows that 80% of Canadian business leaders support a dollar-for-dollar retaliation against U.S. tariffs, indicating a strong consensus for a firm response to protect Canadian interests.
Why are Canadian business leaders emphasizing a united front with the federal and provincial governments?
Ninety-four percent of respondents believe a coordinated approach is essential to avoid a fragmented response, which could weaken Canada’s negotiating position in trade disputes.
How prepared are Canadian businesses for a prolonged trade war?
Sixty percent of businesses surveyed indicated they could withstand a prolonged trade war, showing a level of resilience despite the potential risks, particularly for smaller firms and those reliant on U.S. markets.
What is the significance of the February 1 deadline mentioned in the survey?
The February 1 deadline refers to the potential implementation of U.S. tariffs on Canadian goods, which has prompted urgent preparations and calls for decisive action from Canadian policymakers.
What is the key message from business leaders to the government?
Business leaders are urging the government to stand firm, retaliate strategically, and present a united front to protect Canadian interests in the face of escalating trade tensions.
