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US-Canada Trade War Drives Economic Uncertainty, Survey Shows

A new KPMG survey reveals Canadian businesses are cutting investments, bracing for a recession, and calling for reduced interprovincial trade barriers.

President Donald Trump holds an executive order in the Oval Office of the White House Wednesday, April 9, 2025, in Washington. (Pool via AP)

Overview

  • A KPMG survey of 250 Canadian business leaders finds 76% are preparing for a potential recession due to ongoing trade uncertainty with the US.
  • 92% of respondents agree Canadian companies must increase technology investments to stay competitive, but 59% say they cannot afford to do so in the current economic climate.
  • The trade war has led to 54% of businesses cutting spending on research, development, and capital, with 57% planning further cuts in the next year.
  • 64% of surveyed leaders prioritize reducing interprovincial trade barriers to boost productivity, with 82% believing this would improve their efficiency.
  • The 'buy Canadian' movement has provided some relief, with 77% of respondents reporting a sales boost, but many businesses still face significant challenges.