‘A seismic change’: More than half of Canadian business leaders have lost confidence in the U.S. as a reliable trading partner

In the face of a trade war, Canadian business leaders are making big changes in the way they conduct operations — and many are moving away from their longtime trading partner on the other side of the border, according to a new Léger survey.

The survey of 247 senior Canadian business leaders revealed that the majority (58 per cent) feel Canadian businesses should not be confident that their southern neighbour will be a reliable trading partner in the years to come.

“We’re talking about a seismic change in the way the Canadian economy is functioning, in the way we (have been) working with our main trading partner for decades,” said Sébastien Dallaire, executive vice -president of the Eastern Canada team at Léger.

“(This has the) potential for massive disruptions in the Canadian economy and on the American side as well, because a lot of states really depend on trade with Canada.”

Dallaire believes this might have the most damaging repercussions for the U.S. “Not only are business leaders saying that they are concerned about the threats and they’re already taking action, but they’re thinking long term,” he pointed out. “It means there’s potentially a permanent loss … coming from the fact that Canadian businesses are looking elsewhere.”

The report highlighted that tariff threats from the U.S. have already significantly impacted business decisions. Nearly half of business leaders said they’ve started buying or investing more in Canada, while 42 per cent have begun looking for alternatives to American clients or suppliers.

The polling data showed 41 per cent of these business leaders sell products to and 65 per cent purchase products from the U.S., but most do not hire employees south of the border.

Although business leaders