Eighty-one percent of respondents said they were willing to take the short-term hit from retaliatory tariffs if the country could negotiate a deal that maintained Canada’s “trade-based economy, independence and sovereignty,” according to KPMG. Eighty percent called for the federal government to provide pandemic-level support for Canadians whose employment would be affected, given that 56 percent stated tariffs would drive layoffs.

Eighty percent of business leaders expect a recession this year; 88 percent of survey respondents confirmed that they export or sell to US markets, and 81 percent said US tariffs would affect their business.

For 85 percent of respondents, federal and provincial governments should reduce business taxes and amend the tax system to compete with upcoming US tax reform.

“The new US administration’s economic and trade policies are having huge ripple effects in Canada and around the world. There are important steps that Canadian businesses can take to prepare for trade disruption and higher costs and build resiliency,” said Lucy Iacovelli, KPMG Canada’s Canadian managing partner, tax and legal, in a statement. “No matter when or if US tariffs or tax cuts take effect, now is the time to be proactive and understand your exposure and develop mitigation strategies.”

In a pre-emptive move against possible tariffs, 65 percent of respondents shipped goods to the US before Donald Trump’s inauguration as US president on January 20. Forty-eight percent intend to transition their investments to the US and establish operations south of the 49th parallel to limit expenses and cater to the US market.