Bigger firms and sectors carefully built-in with the US economic system, similar to manufacturing, automotive, transportation, vitality, and expertise, are significantly involved about future US commerce insurance policies.
Shaira Nanji, accomplice, Tax, KPMG Regulation, defined that “as geopolitical shifts reengineer world commerce relationships, Canadian firms that beforehand loved largely unrestricted entry to US and worldwide markets are having to navigate rising protectionism and added prices.”
Canadian enterprise leaders are additionally fearful in regards to the competitiveness of Canada’s tax insurance policies in comparison with the US. A big 87 p.c imagine that if the US implements main tax cuts sooner or later, Canada’s greater private and company tax charges will damage its competitiveness.
Furthermore, 86 p.c of respondents really feel that Canada’s private earnings tax charges are uncompetitive when in comparison with different superior economies, which makes expertise recruitment tougher.
These views echo findings from a earlier 2023 KPMG survey, the place 79 p.c of respondents stated that prime taxation ranges hurt their skill to compete with the US market.
