A seismic shift is underway in Canada’s business landscape as President Trump’s tariffs drive companies south of the border.
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, nearly 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.
“The new U.S. administration’s economic and trade policies are having huge ripple effects in Canada and around the world,” says Lucy Iacovelli, Canadian Managing Partner, Tax and Legal, KPMG in Canada. “There are important steps that Canadian businesses can take to prepare for trade disruption and higher costs and build resiliency.
Hellbound and Down 