A new KPMG Canada survey finds majority of business leaders optimistic about Ottawa's economic agenda, though regulatory gridlock and tariff pressures remain top concerns
More than half of Canadian business leaders are cautiously optimistic about the federal government's economic agenda, but many warn that good intentions must now be matched with measurable action.
A new survey from KPMG Canada polled 359 business owners and senior decision-makers at Canadian companies generating at least $10 million in annual revenue. It found that 51 per cent of respondents expect their business to be better off over the next three years as a result of federal economic measures, while 55 per cent believe the government is making genuine progress in supporting Canadian enterprise.
That cautious confidence, however, is being tested by persistent structural frustrations from regulatory gridlock to the ongoing volatility of Canada-US trade relations.
Regulatory burden remains the biggest barrier
Sixty-seven per cent of business leaders said regulatory requirements have created institutional gridlock, and 65 per cent said overregulation and higher taxes are actively hindering their ability to scale.
When asked what Ottawa should prioritise to strengthen the economy, respondents ranked removing red tape and accelerating regulatory reform as their top demand, tied at 50 per cent with fast-tracking a West Coast oil pipeline. Accelerating major infrastructure projects followed at 47 per cent, with tax reform including corporate tax adjustments and investment incentives cited by 43 per cent.
Lachlan Wolfers, National Leader of KPMG Law and based in Toronto, said business leaders are calling for a focused, disciplined approach. "Business leaders want governments to stay focused on actions within Canada's control," Wolfers noted, emphasising economic resilience as the underlying goal.
Tariffs are reshaping pricing across the country
Canada's trade tensions with the United States are also leaving a visible mark on pricing behaviour. Two-thirds of survey respondents said they have adjusted their prices to account for some or all tariff-related costs, with 31 per cent passing through the full impact to customers. Only 39 per cent reported making no pricing changes despite tariff pressures.
The survey was conducted before Ottawa and Washington exchanged a new round of tariff threats in late July 2026, including a reported 50 per cent U.S. tariff threat on select Canadian exports and a 10 per cent "forced labour" surcharge; meaning the actual pricing pressure facing Canadian businesses today may be considerably more acute than these figures suggest.
Despite the friction, Canadian companies are not walking away from the American market. Ali Jaffery, Partner and Chief Economist at KPMG Canada in Toronto, observed that "Canadian businesses remain committed to the US market while building resilience through broader global trade relationships."
That dual approach is reflected in the data. Sixty-nine per cent of respondents believe Canada should be a tough negotiator in CUSMA (the Canada-United States-Mexico Agreement) talks, while 65 per cent also support a more pragmatic, pragmatism-first posture at the negotiating table, a tension that mirrors the broader debate playing out in Ottawa.
On market diversification, 33 per cent of businesses surveyed said they plan to expand into new markets within one to three years, and 26 per cent reported they already export and are actively exploring opportunities through Canadian trade agreements. The European Union is the most targeted growth market, with 25 per cent of respondents planning expanded exports there, followed by the United Kingdom at 19 per cent.
What it means for advisors
The KPMG Canada findings arrive at a moment when clients are showing heightened anxiety about economic stability, government policy, and the durability of Canada's trade relationships.
The survey highlights that Canadian business leaders are not panicking, but they are not complacent either.
Fifty-one per cent of respondents acknowledged that regulation serves a legitimate purpose in protecting health, safety, and the environment, suggesting business leaders are not calling for deregulation wholesale, but for smarter, faster execution of the rules already on the books.
For the advice community, that nuance matters. Clients who are business owners are watching Ottawa closely, and the confidence (or lack thereof) they take from government policy will shape their investment decisions, their growth plans, and ultimately the size and complexity of the portfolios they bring to their advisors.
The full KPMG Canada survey was conducted by Angus Reid Forum on behalf of KPMG Canada, with 359 business leaders at firms generating $10 million or more in annual revenue.
