Businesses are hoping for more support and tax breaks next month.
according to an audit company survey
.
KPMG's annual federal budget survey found that more than nine in 10 Canadian business leaders want the government to provide support to sustain their operations under the Prime Minister.
“Nation building” strategy.
Influence
Canadian companies were a major focus of the report, as the issue dominated headlines for much of the year.
“As U.S. tariffs cast a shadow over the Canadian economy, the vast majority of business leaders support the government's plans to confront Canada's economic challenges and make investments that will deliver long-term benefits,” said Lucy Iacovelli, KPMG Canada managing partner for tax and legal.
While the severity and impact varied, 80 percent of those surveyed said their businesses were struggling due to U.S. tariffs, which have made them less competitive. They said this could be due to higher import and production costs, loss of revenue, a freeze on investment or the removal of the $800 duty-free exemption on US shipments.
The study found that 84 percent of those who trade directly with the US say their business costs have increased.
Most businesses believe it is critical for the government to reduce the obstacles they face in dealing with uncertainty. It mentioned wider and sector-specific support, including expanded financing and lending options for any company or sector affected by the tariffs.
Iacovelli said many companies are looking for a bridge to help them sustain and expand their business beyond the U.S. market so they can participate in Build Canada opportunities and compete on the global stage.
“While the new federal budget focuses on generational investments to build the economy, the government also needs to make spending that will provide immediate relief and support capital for businesses and sectors that are currently struggling,” she said.
The report also highlights the need for increased transition support, which is made even more urgent by the uncertainty surrounding the renewal of the agreement.
Canada–United States–Mexico Agreement
in 2026.
The survey said 96 percent of respondents believe the greatest risk to Canada's economic future is dependence on the United States and recognize the need to diversify trade with trusted strategic partners. It says 97 percent believe the government needs to help businesses gain access to markets outside the U.S. and to reliable trading partners.
Businesses also want tax reform, with more than nine in 10 wanting the federal and provincial governments to work together to reduce Canada's overall corporate tax rate by two to four per cent. They said it could attract more investment and entrepreneurial activity and restore a competitive advantage over the United States.
Nine in 10 also want the government to commit to tax reform that would lower corporate taxes and improve competitiveness.
The survey of 501 Canadian companies was conducted by KPMG Canada between September 11 and October 2 to gauge business opinions and priorities ahead of the November 4 federal budget.
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