KPMG survey of 275 manufacturers found 42 pct have shifted or are considering
shifting production to the US to address persistent trade uncertainty and rising
competitive pressure. 57 pct have delayed, reduced or canceled capex citing
trade uncertainty and competitiveness concerns. 80 pct plan to keep headquarters
in Canada, but 11 pct intend to relocate HQ to the US within five years;
manufacturing accounts for more than 10 pct of Canadian GDP, so even that share
could have a material economic impact. Manufacturers remain highly dependent on
the US market: 61 pct said they could not survive without US sales. 86 pct
export outside Canada, and among exporters 96 pct say their products meet USMCA
rules and thus avoid tariff exposure. The survey comes as USMCA-related
discussions intensify. KPMG Canada industrial markets partner Anamika Gadia said
government action on competitiveness, tax, regulation and trade will determine
whether manufacturing investment remains in Canada.
