**Toronto**: A recent Léger survey shows a significant shift in Canadian business leaders’ views on U.S. trade, with 58% deeming the U.S. unreliable. Concerns over impending tariffs and a focus on domestic investment reflect a changing economic landscape, signalling potential long-term disruptions.
A recent Léger survey, commissioned by the Financial Post, reveals a significant shift in sentiment among Canadian business leaders regarding trade relations with the United States. The survey, which included responses from 247 senior executives, found that 58 per cent of these leaders no longer regard the U.S. as a reliable trading partner, signalling what Sébastien Dallaire, executive vice-president of the Eastern Canada team at Léger, described as “a seismic change in the way the Canadian economy is functioning.”
Dallaire noted the potential implications of this shift, stating, “This has the potential for massive disruptions in the Canadian economy and on the American side as well, because a lot of states really depend on trade with Canada.” He further suggested that the long-term effects could result in a permanent loss of reliance on U.S. partnerships as Canadian businesses seek alternatives.
The survey highlights that nearly half of the respondents are increasingly investing at home, with 48 per cent indicating an intention to buy or invest more in Canada. Additionally, 42 per cent are actively searching for alternatives to U.S. suppliers and clients. The results underscore the growing uncertainty that Canadian leaders feel about the future of the Canadian-American trade relationship, particularly in light of looming tariffs from the U.S.
While a significant portion of the surveyed leaders engages in cross-border trade, with 41 per cent selling products to the U.S. and 65 per cent purchasing from American suppliers, there is a distinct lack of movement in terms of hiring across the border. Many business leaders appear to be holding off on reducing or postponing hiring and investments, with varying responses depending on their industries’ reliance on U.S. trade.
Concerns loom large over the health of the domestic economy, with 43 per cent of leaders fearing deterioration and 79 per cent expressing anxiety about rising inflation over the next six months. A considerable majority, 84 per cent, voiced their apprehension over the impending American tariffs on Canadian exports, which are projected to take effect shortly.
The survey findings reflect broader fears about U.S. economic policy under President Donald Trump, with 59 per cent of respondents concerned that he may use trade measures to pressure Canada into becoming what he has previously referred to as the “51st state.” Despite these fears, Dallaire highlighted a notable resilience among Canadian business leaders, observing that 82 per cent do not intend to relocate operations to the U.S. to circumvent tariff-related uncertainties. Moreover, over three-quarters of the surveyed leaders support the idea of retaliatory tariffs, even with the understanding that this could elevate operational costs or lessen consumer demand for their products in the U.S.
Dallaire added that the results indicate a palpable shift in sentiment resonating with broader Canadian public opinion, characterised by an increasing sense of patriotism and solidarity among business leaders. The survey was conducted between 21 and 25 February and included members of the LEO Decision panel, established by Léger in partnership with HEC Montreal. The findings serve as a clear indicator of the evolving landscape of Canadian trade relations, with implications for businesses on both sides of the border.
Source: Noah Wire Services
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