Businesses are hoping for broader support and tax relief in next month’s

federal budget , according to a survey by auditing firm KPMG Canada . KPMG’s annual federal budget survey said more than nine in 10 Canadian business leaders want the government to provide supports to sustain their operations as part of Prime Minister

Mark Carney ‘s ‘nation-building’ strategy. The impact of U.S. tariffs on Canadian companies was one of the main focuses of the report as the issue dominated headlines for most of the year.

“As U.S. tariffs cast a shadow over the Canadian economy, the vast majority of business leaders are supportive of the government’s plans to confront Canada’s economic challenges and make capital investments that accrue long-term benefits,” said Lucy Iacovelli, KPMG’s Canadian managing partner, tax and legal.

Though the degree of severity and impact varied, 80 per cent of those surveyed said their business is struggling because of U.S. tariffs that have made them less competitive. They said this could be due to higher import and production costs, lost revenues, paused investment or the removal of the $800 duty-free exemption on shipments to the U.S.

The survey said that 84 per cent of those that trade directly with the U.S. say their business costs have risen.

Most businesses believe it is critical for the government to lessen the obstacles they face as they wrestle with uncertainty. It mentioned more broad-based and sectoral supports, including expanded financing and loan options for any company or sector impacted by tariffs.

Iacovelli said many companies are looking for a bridge to help them sustain and transition their businesses beyond the U.S. market, so they can participate in “Build Canada” opportunities and compete on the global stage.

“While the focus of the upcoming federal budget is to make a generational investment in building the economy, the government also needs to make expenditures that provide immediate relief and sustain capital for businesses and sectors that are struggling right now,” she said.

The report also highlighted the need for increased transitional support, made even more urgent by uncertainty surrounding the renewal of the

Canada–United States–Mexico Agreement in 2026. The survey said 96 per cent of respondents believe the greatest risk to Canada’s economic future is dependence on the U.S. and recognize the need to diversify trade with reliable, strategic partners. It said 97 per cent believe the government needs to help businesses access non-U.S. markets and reliable trading partners.

Businesses also want tax reform, with more than nine in 10 wanting the federal and provincial governments to collaborate to cut the overall Canadian corporate tax rate by two to four per cent. They said this could attract more investment and entrepreneurial activity and restore a competitive advantage over the U.S.

Nine in 10 also want the government to commit to a timeline for tax reform that will reduce corporate taxes and boost competitiveness.

The survey of 501 Canadian companies was conducted by KPMG Canada between Sept. 11 and Oct. 2 to to gauge the views and priorities of businesses ahead of the Nov. 4 federal budget.

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