Larger companies and sectors closely integrated with the US economy, such as manufacturing, automotive, transportation, energy, and technology, are particularly concerned about future US trade policies.
Shaira Nanji, partner, Tax, KPMG Law, explained that “as geopolitical shifts reengineer global trade relationships, Canadian companies that previously enjoyed largely unrestricted access to US and international markets are having to navigate rising protectionism and added costs.”
Canadian business leaders are also worried about the competitiveness of Canada’s tax policies compared to the US. A significant 87 percent believe that if the US implements major tax cuts in the future, Canada’s higher personal and corporate tax rates will hurt its competitiveness.
Moreover, 86 percent of respondents feel that Canada’s personal income tax rates are uncompetitive when compared to other advanced economies, which makes talent recruitment more difficult.
These views echo findings from a previous 2023 KPMG survey, where 79 percent of respondents said that high taxation levels harm their ability to compete with the US market.
