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Canadian Firms Want Faster Action on the Government's Economic Plan, KPMG Says

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Canadian business leaders broadly support the federal government's economic agenda but are calling for faster progress in turning pledges into action, according to a new KPMG survey published on Wednesday.

Slightly more than half of respondents, or 51%, expect federal government initiatives to leave their businesses better positioned over the next three years, while 55% view the government's approach to business support as moving in the right direction, said KPMG.

"Our survey shows business leaders want governments to stay focused on the actions that are within Canada's control to build economic resilience," wrote Lachlan Wolfers, National Leader, KPMG Law, in the survey.

As the US-Mexico-Canada Agreement on trade (USMCA), or CUSMA as it's known in Canada, negotiations intensify, 69% of businesses support a firmer Canadian negotiating position, it added.

Companies are also adjusting to evolving trade conditions by expanding into markets such as the European Union, the United Kingdom, and Mexico, although the United States remains a key trading partner.

US tariff-related cost pressures are feeding into pricing strategies, with 66% of firms indicating they have raised prices to absorb some or all of the impact, while 39% have yet to make pricing adjustments, according to KPMG.

The KPMG online survey was conducted June 25 to July 13, among 359 business owners and decision-makers at businesses in Canada with annual gross revenue greater than C$10 million.

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