Canada Could Lose 48% of Businesses to the US

Canada could lose 48% of its businesses to the United States. This is on top of closings and exoduses over Trudeau’s policies. Companies have been leaving Canada for the past couple of years. Jcrew, Nordstrom, Disney Store, Ted Baker, Top Man, Reiss, Ann Taylor, La Chateau, Johnston and Murphy, and more have left Canada.

Now, they face tariffs.

President Donald Trump enacted hefty tariffs on imports from Canada, Mexico, and China on Saturday. These measures are designed to address pressing national concerns, including illegal immigration, drug trafficking, and trade imbalances.

As a result, a recent survey shows that 48% of Canadian businesses might leave Canada for the United States out of desperation.

Tariffs or no tariffs, unfavorable business conditions drive these decisions, including high labor costs, low spending outlook, and bad economic policies.

48% Could Leave on Top of 1 in 20 Already Having Left

According to a KPMG survey, 85% of Canadian business leaders are reviewing their business strategies to prepare for leadership changes. They are deeply concerned about the impact of the US election on the Canadian economy. The exact numbers want Justin Trudeau to fight the tariffs.

However, the survey found that 65% took preemptive action and shipped goods or products to the US before the election. Another 48% plan to shift their investments to the United States and set up operations or production south of the forty-ninth parallel to serve the US market and reduce costs.

Companies have been leaving Canada for a while, partly because of the confused tax system, the capital gains tax, and the cap on oil and gas. One in 20 businesses closed in a single month last year.

According to the Fraser Institute, fewer Canadians are starting new businesses. There has been a decline in total businesses in Canada due to business closures and fewer openings. In April 2023, a single month wiped out over a year of gains for the Canadian economy.

Canadian Businesses Have Closed Faster Than in Their History

Canadian businesses are closing at one of the fastest clips in history. A rate not seen since the pandemic locked them down when they were physically restricted from doing business.

There is also a rising unemployment rate that is even higher for younger adults. Canada is losing corporate offices; one in 20 head offices closed or merged with other companies.

Head offices serve as command and control centers for key decisions about people, products, processes, technologies, and strategies for growth. They create local demand for accounting, law, engineering management, consulting, finance, and advertising services. These are high-wage jobs.

This Is Why Businesses Are Closing

The Fraser Institute summarizes the cause as a poor policy environment for business growth, an antiquated tax system that defies understanding by even the most skilled tax accountant complex, inefficient regulatory processes affecting many industries, internal trade barriers that fragment the domestic market, heavy, direct government involvement in multiple sectors of the economy, and a federal government that seemingly lacks interest in doing much to improve the efficiency and productivity of the national economy.

StatCan released its statistics in September 2024, backing up the business failure under the current Prime Minister.

3/4ths of Small Businesses Will Close

According to Advisor Canada, three-quarters of small business owners plan to exit their businesses within the next 10 years. That is according to a new report by the Canadian Federation of Independent Business Report.

The report said more than two trillion in business assets could be in play over the next decade.

Seventy-six percent of small business owners intend to exit their business activities, citing retirement, with a smaller number citing stress.

The Justin Trudeau Effect

However, as the Vancouver Sun said, capital gains chase people out. While the threat of 25% tariffs on Canadian exports has captured headlines, there’s a big storm south of the border. The Trump administration’s sweeping plans for corporate tax cuts, deregulation, and government downsizing could unleash investment and innovation, a boom that would lead Canadian companies to struggle to compete with tariffs or no tariffs.

The Edmonton Journal also makes note of Elon Musk and the DOGE plan to cut two trillion from the federal budget by July 2026. As they said, Musk has a proven track record.

At the same time, Trudeau liberals are adding new emissions caps on the oil and gas sector in what they describe as “a pulverizing policy.” Put forward by Trudeau liberals, some in Canada are calling it “economic treason.”

“Liberal Canadian and Calgary investment expert. Martin Pelletier said of the policy, “I’m telling you, this stuff I’m seeing scares the sh** out of me. Like the attack on small businesses, capital gains changes, and the emissions cap, it keeps going on and on.” This is a man who is a nationalist and measures his words.

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