Some Canadian businesses contemplate move to U.S., raising concerns for economy, says PwC

Some Canadian companies are contemplating moving their operations to the United States as a long-term solution to get around Donald Trump‘s tariff threats and protect the viability of their businesses, according to a new survey by PricewaterhouseCoopers LLP Canada.

Its survey of 283 Canadian businesses also said they aren’t so sure about their long-term prospects, with 58 per cent saying they thought their business would be viable 10 years from now, down from 63 per cent in November, while 19 per cent indicated they would move some or all of their production to the U.S. to protect the future of their operations.

The relocation figure raises “concerns for the Canadian economy,” PwC said in the report, which added that figure rises to 37 per cent in the industrial manufacturing and automotive sectors, while 42 per cent in those sectors said they expected their businesses to be viable 10 years from now and 24 per cent “put their business’ viability at two year or less.”

Overall, 15 per cent said their businesses would only remain viable for the next two years.

“That’s something to keep an eye on. We need those businesses to survive and be resilient,” Nochane Rousseau, national managing partner of clients and markets at PwC, said, noting they are the ones who are likely facing the most pressure from tariffs currently.

“Those companies are taking short-term action,” including adjusting supply chains and speaking with customers about who is going to absorb the tariff, with “some exporters deciding they will to protect market share,” he said.

Also, a little more than half of companies said they would look for new markets and 30 per cent said they would consider pursuing mergers and acquisitions and other partnerships in the