An interesting report from Bloomberg following a survey conducted by KPMG of Canadian manufacturers. Keep in mind this is a survey of companies within Canada that do traditional manufacturing of products; this is not a survey of companies that assemble foreign goods for export – there is a substantial difference.
As noted within the report, approximately 10% of Canadian GDP comes from Canadian manufacturing. Within that sector there are multiple companies now planning or considering moving out of Canada into the United States.
Many will claim the trigger for the consideration is based on the potential elimination of the USMCA (CUSMA) trade agreement, and there is truth to that aspect. However, the systemic issues within Canada -including energy policy, regulation and corporate tax burdens- represent the larger problem; the termination of the USMCA is the straw that breaks their back.
The domestic hurdles to manufacturing, are the bigger issues that cannot be negotiated away in U.S-Canada trade agreements. Specifically, the low-price and stable energy policies are the core consistencies that are no longer present in Canada; that fundamental cannot be easily fixed.
BLOOMBERG – […] KPMG Canada said on Tuesday that 42 per cent of Canadian manufacturing companies indicated they have or are considering moving production to the United States. Of those considering relocating, 77 per cent expect to make the transition within the next two years.
[…] the issues go beyond the trade situation though, with Canada needing to create a competitive environment for manufacturers to grow.
“This survey clearly shows that manufacturers need to feel more comfortable and see some action from the government in order to continue to produce and invest and grow in Canada,” she said.
“Some of the key factors that companies have cited are more certainty around interprovincial trade barriers, they need more tariff certainty, they want to see lower corporate taxes, they want better access to capital and cheaper energy.”
The survey also found 57 per cent of manufacturing firms have paused, reduced or cancelled capital investment projects. Thirty-six per cent said they have scaled back investments, 12 per cent have paused their plans and nine per cent have cancelled planned spending. (read more)
This survey is further evidence of the scale of leverage President Trump and USTR Jamieson Greer carry toward the Canadian trade negotiations. Quite simply, despite their unwillingness to accept reality – Canada is economically dependent on the United States as the customer for any export.
Without the USMCA (CUSMA) trade agreement Canada is structurally incapable of economic growth.
However, despite the statutory expiration, the intelligence collection continues under the FISA Court’s annual certifications, which were renewed in March 2026 and remain valid through March 2027. {citation}