A new survey finds that the vast majority of respondents in key industries say their firm is at least partly exposed to tariffs, with some considering moving production to the U.S.
A survey from PWC Canada found that 97 per cent of respondents in the manufacturing and automotive sectors reported being at least partially exposed to tariffs. Meanwhile 19 per cent of respondents said they are considering moving production to the U.S., with that figure rising to 37 per cent for firms in the automotive and manufacturing sectors. Results from the survey come ahead of an announcement expected from U.S. President Donald Trump late Wednesday afternoon regarding reciprocal tariffs.
Michael Dobner, a partner, PWC Canada, said in an interview with BNN Bloomberg Wednesday that the number of firms considering relocation is broadly “in line with what our hypothesis was” based on discussions with companies.
“This does not mean those people or those companies are moving tomorrow to the U.S., but definitely they considered that at least as a worst-case scenario to move to the U.S. in order to avoid losing business,” he said.
Dobner added that the uncertainty is creating an “untenable situation” for some companies.
“There is uncertainty about the new global order that the current U.S. administration is trying to change and what does this mean as far as U.S. engagement with the rest of the world and U.S. engagement especially with the Western countries. The U.S. is considering many, many steps, that could affect the Canadian economy and global economy,” he said.
Canada’s industrial sector, and especially its automotive industry, are deeply integrated with U.S. supply chains, Dobner said.
“Their dependence on the U.S. market is sometimes well over 90 per cent with not much ability at this point to pivot to other markets. Because in Canada, at least in the manufacturing sector, Canadian companies usually their advantage is in lower manufacturing cost, but we don’t hold in that sector much of the intellectual property,” he said.
“So our ability to pivot and diversify beyond the U.S. is quite limited.”
Methodology:
PWC Canada conducted its Tariff Impact Survey between March 4 to March 10, 2025. Results were derived from 283 business leaders across the country.
U.S. President Donald Trump’s reciprocal tariffs on trading partners are set to take effect today, a day he has proclaimed as “Liberation Day” for American trade. CTV News has extensive coverage across all platforms:
- CTVNews.ca has in-depth coverage, real-time updates, and expert analysis on what the tariffs will mean for Canadians.
- CP24.com has developments out of Queen’s Park and what the tariffs mean for the people of the GTHA.
- BNNBloomberg.ca has what this means for the business community, investors, and the market.
