The article discusses the profound impact of President Trump's tariff threats on businesses and investment in Canada. Experts, including former auto industry executive Greig Mordue, express concerns that the threats alone are enough to deter investment, particularly in the Canadian automotive sector, for at least the next four years. The Bank of Canada's decision to cut interest rates was influenced by these tariff uncertainties. A KPMG survey revealed that almost half of contacted businesses are planning to shift investments to the U.S. to mitigate potential costs and serve the U.S. market more effectively.
"Whether or not they ever be put into place, the damage is done," said Greig Mordue, highlighting that tariff threats impact business confidence regardless of implementation.
"For at least the next four years, there will be no serious investment in the Canadian automotive industry," according to Mordue, emphasizing a long-term effect on investment.
"Even if no tariffs were imposed, a long period of uncertainty under the cloud of tariff threats would almost certainly damage business investment in Canada," stated the Bank of Canada's Summary of Deliberations.
KPMG's survey revealed that nearly half of the businesses contacted ‘plan to shift investments or production to the U.S. to serve the U.S. market and reduce costs.’
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