Canadian business leaders have lost confidence in the United States

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Facing a trade warCanadian business leaders make major changes in the way they conduct operations – and many move away from their long -standing trading partner on the other side of the border, according to a new Light investigation.

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The survey of 247 Canadian senior Canadian leaders revealed that the majority (58%) believed that Canadian companies should not be convinced that their southern neighbor will be a reliable trading partner in the years to come.

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

“(It has the) potential for massive disturbances in the Canadian economy and on the American side also, because many states really depend on trade with Canada.”

Dallaire thinks that this could have the most harmful repercussions in the United States “not only do business leaders say they are concerned about threats and that they are already acting, but they think in the long term,” he said. “This means that there is potentially a permanent loss … from the fact that Canadian companies are looking elsewhere.”

The report stressed that United States pricing threats have already had a significant impact on commercial decisions. Almost half of business leaders said they started buying or investing more in Canada, while 42% started looking for alternatives to American customers or suppliers.

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Survey data has shown that 41% of these business leaders sell products and 65% purchase of products in the United States, but most of them do employees in the south of the border.

Although business leaders are less likely to point out that they had reduced or postponed rentals and investments or decreases on expenses, a large part of respondents was still planning to do so.

Dallaire noted that some business leaders could expect things, because the prices have not yet struck, or could be in industries that do not also depend on trade with the United States and do not feel that they will be so hard.

For example, more than a quarter of respondents said the pricing threats had not changed their relationship with customers and American partners and 20% said that this issue was not applicable to them or that they did not have customers or partners in the United States.

However, Canadian business leaders have significant concerns about the domestic economy, 43% concerned about deterioration and 79% inflation Over the next six months.

A large majority (84%) are, unsurprisingly, troubled by the next torrent of American prices on Canadian exports. US President Donald Trump25% scanning prices should move forward on Tuesday, while steel and aluminum prices are scheduled for March 12 and reciprocal prices could come into force in early April.

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Another important group of respondents (59%) fear that Trump can use various measures, such as prices and commercial sanctions, to try to force Canada to become the 51st state of the United States. Trump previously said that he would be willing to use “economic force” to annex Canada.

Despite these fears, Dallaire said that the results of the investigation show that Canadian business leaders, including those who do business in the United States, defended themselves and demonstrated their determination, even if it could harm their business.

Eighty-two percent of respondents said they do not plan to move or extend operations in the United States to avoid prices or uncertainty caused by prices. And more than three -quarters of business leaders were in favor of dollar reprisals for a dollar, even if this could potentially result in higher commercial costs or a reduction in demand for their products through the border.

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“This reflects what we measure in Canadian public opinion as a whole,” noted Dallaire, pointing to the Canada Purchase Movement. “(There is) a moment of solidarity, of rallying moment around the flag, more patriotism and (people) saying” it is time for us to retaliate and keep us together. “”

The investigation was carried out between February 21 and February 25 among the members of the Leo decision committee, a group owner of Canadian business leaders, created by Léger in collaboration with HEC Montréal.

• E-mail: sllouis@postmedia.com

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