Canadian business executives have lost confidence in the SH.BA

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In the face of a trade war, Canadian business managers are making major changes in the way operations – and many are leaving their long trade partner on the other side of the border, according to a new Léger study.

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The survey of 247 top Canadian business executives found that most (58 percent) think Canadian businesses should not be sure that their southern neighbor will be a reliable trade partner in the coming years.

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“We are talking about a seismic change in the way the Canadian economy is working, the way we (we have) working with our main trade partner for decades,” said Sébastien Dallaire, executive vice president of the East Canada team in Léger.

“(This has the potential) for massive interruptions in the Canadian economy and from the US as well, because many states really depend on trade with Canada.”

Dallaire believes this may have the most harmful consequences for the US “not only that business leaders say they are worried about threats and they are already taking action, but they are thinking for a long time,” he said. “It means there is potentially a permanent loss … that comes from the fact that Canadian businesses are looking elsewhere.”

The report noted that the tariff threats from the US have already had a significant impact on business decisions. Nearly half of business executives said they have started buying or investing more in Canada, while 42 percent have begun to look for alternatives for US clients or suppliers.

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Voting data showed that 41 percent of these business executives sell products in and 65 percent of the purchase products from the US, but most do not employ employees in the south of the border.

Although business executives were less likely to report that they have reduced or delayed employment and investments or withdrawn from expenses, a considerable part of respondents were still thinking of doing so.

Dallaire noted that some business executives could wait for things, as tariffs have not struck yet, or they may be in industries that are not so dependent on the trade with the US and do not think they will be so hit.

For example, more than a quarter of respondents said tariff threats did not change their relationship with US clients and partners, and 20 percent said that this question was not applicable to them or they had no clients or partners in the US

However, Canadian business leaders have major concerns for the domestic economy, with 43 percent concerned that it will worsen and 79 percent concerned about inflation over the next six months.

An overwhelming majority (84 percent) are, startling, troubled for future American fees for Canadian exports. US President Donald Trump’s comprehensive tariffs are expected to move forward Tuesday, while steel and aluminum tariffs are scheduled for March 12 and reciprocal tariffs may take effect in early April.

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Another considerable group of respondents (59 percent) fears that Trump can use various measures, such as tariffs and trade sanctions, to prove and force Canada to become the 51st US state. Trump has previously stated that he would be ready to use the “economic force” to annex Canada.

Despite these fears, Dallaire said the survey results show that Canadian business leaders, including those who do business in the US, are standing for themselves and demonstrating their determination, even if it can harm their businesses.

Eighty -two percent of respondents said they are not thinking of moving or expanding operations in the US to avoid tariffs or any tariffs caused. And more than three -quarters of business executives were in favor of dollar’s revenge fees for the dollar, although this may potentially lead to higher business costs or reduce demand for their products across the border.

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“This reflects what we are measuring in Canadian public opinion in general,” noted Dallaire, showing the Buy Canada movement. “(There is a moment of solidarity, the moment of gathering around the flag, more patriotism and (people) saying” It’s time for us to fight again and stay together. “”

The survey was carried out between February 21 to February 25, among Leo’s decision panel members, a group of Canadian business executives, founded by Léger in collaboration with HPP Montreal.

• Email: slouis@postmedia.com

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