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Nearly Half of Canadian Businesses Plan to Move Production to the U.S — 60% Are Looking for Business Acquisitions In Response to Trump Tariffs

Nearly Half of Canadian Businesses Plan to Move Production to the U.S — 60% Are Looking for Business Acquisitions In Response to Trump Tariffs

A seismic shift is underway in Canada’s business landscape as President Trump’s tariffs drive companies south of the border.

This from thegatewaypundit.com.

On Saturday, President Donald Trump enacted substantial tariffs on imports from Canada, Mexico, and China. These measures are designed to address pressing national concerns, including illegal immigration, drug trafficking, and trade imbalances.

The administration has imposed a 25% tariff on all goods from Canada and Mexico, with a 10% tariff specifically on Canadian energy exports. Imports from China are now subject to a 10% tariff.

According to a new KPMG survey:

[N]early half of Canadian businesses (48%) are actively planning to move production or investments to the United States to stay competitive, while 60% are exploring acquisitions in the U.S. market.

Recognizing the writing on the wall, an overwhelming 65% of Canadian businesses took proactive measures before President Trump even stepped into office.

Many began shipping goods to the U.S. ahead of potential tariffs, ensuring their products avoided any sudden cost increases.

Lucy Iacovelli, Canadian Managing Partner, Tax and Legal, KPMG in Canada, said:

The new U.S. administration’s economic and trade policies are having huge ripple effects in Canada and around the world.

There are important steps that Canadian businesses can take to prepare for trade disruption and higher costs and build resiliency.

Further:

No matter when or if U.S. tariffs or tax cuts take effect, now is the time to be proactive and understand your exposure and develop mitigation strategies.

Simply put, the Trudeau government’s economic policies have left Canadian businesses scrambling. Faced with high taxes, regulatory burdens, and now U.S. tariffs, companies are choosing to move where the business climate is friendlier—America.

The survey also found that 86% of Canadian business leaders see Trump’s tariffs as a “wake-up call” to boost productivity.

An overwhelming 89% of business leaders support strengthening Canadian border security to address Washington’s concerns, while 85% back increased military spending—particularly in Arctic defense and NORAD defense to address the U.S. government’s (and NATO’s) concerns.

Final thoughts: Impressive! Many question President Trump’s actions, some are even fearful, but the large majority of us are smiling continuously for the first time in four years.

People around town seem to be much less worrisome and more about enjoying life. Even strangers seem more friendly and communicative.

I imagine this is the Trump Effect.

UPDATE:

Canada’s outgoing PM, Justin Trudeau, has agreed to send 10,000 troops to the border as part of a $1.3 billion border plan which:

[R]einforces the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl.

Trudeau also said:

Canada will appoint a Fentanyl Czar, list cartels as terrorists, ensure 24/7 eyes on the border, and launch a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl, and money laundering.

Finally, the Canadian PM also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million.

As a result of not only bending the knee but bending over fully for the U.S. president, Trump’s proposed tariffs will be paused for at least 30 days.

Final thought: This is what WINNING looks like.

God speed to the Trump-Vance team.