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Tariffs Cause Price Changes for Most Canadian Businesses: KPMG Survey

Tariffs Cause Price Changes for Most Canadian Businesses: KPMG Survey

Tariffs Cause Price Changes for Most Canadian Businesses: KPMG Survey
Canada's economy is dealing with US tariffs. A survey found most Canadian businesses changed prices due to these extra costs.
The KPMG survey had 359 business leaders. They represented companies with $10 million to $20 billion in revenue.
Two-thirds of business leaders changed prices because of tariffs. 39% made no changes.
When businesses face higher costs, they must decide what to do. They can absorb the costs, reduce costs, or raise prices.
35% of businesses passed on some tariff costs to customers. 31% passed on all the costs. 15% found other ways to reduce costs.
Many Canadian businesses first absorbed some tariffs. Now, they are passing on more costs to consumers.
We will see this for a while. Governments are focused on managing inflation.
Tariffs are fees for importing goods and services from other countries.
There are tariffs on Canadian steel, aluminum, and other products.
The survey was done before the US announced new tariffs on Canadian goods.
Canadian businesses look at this from a long-term perspective.
If we did the survey now, the results might be different. Businesses might be more focused on the short term.
72% of businesses in the survey export goods or services. 79% of these businesses follow CUSMA rules.
Many products targeted by new tariffs were previously duty-free under CUSMA.
49% of businesses say CUSMA is critical to their operations.
Many businesses are focused on exporting to markets beyond the US.
33% of businesses plan to expand to new markets in the next few years.
Canadian businesses are moving from tariff turmoil to managed uncertainty.
This uncertainty will continue until at least the end of the current US administration.
Stick to the facts.
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