No trade deal with the US; Canadian manufacturing companies are moving to the US, a blow to Mark Carney

 

 

 

The country's leading manufacturing companies are reportedly moving their production to the US after Canadian Prime Minister Mark Carney failed to sign a trade deal with the US. This worrying information about Canada's economy is contained in a new survey conducted by global consulting firm KPMG. 42 percent of Canadian companies surveyed are already moving production to the US or are considering it. The reason for this uncertainty in the industry is that Carney, who came to office with the promise of making a trade deal with the Trump administration, has not been able to do so even after 16 months.

The lack of a trade deal has seriously affected industrial investment and the labor market in Canada. According to the latest reports, Canada lost 17,000 construction jobs in June alone. The manufacturing sector has lost 52,000 jobs since Carney became prime minister in March 2025, and a total of 61,000 since January 2025, when Trump’s tariff threat materialized. In addition, the KPMG survey shows that 36 percent of companies have cut their capital investment due to uncertainty, and 12 percent have temporarily suspended investments.

Canadian business is deeply dissatisfied with Prime Minister Mark Carney’s political stance that no deal is better than a bad deal. The administration’s failures, including Canada’s decision to implement a digital services tax and the imposition of new fees on American vehicles, are considered to have caused the collapse of negotiations with Trump. Experts warn that 52 percent of Canadian manufacturing companies are currently struggling to survive, and that the country will be headed for a deeper economic crisis if it does not gain secure access to the US market.