A 2026 KPMG survey reveals that 42% of Canadian manufacturers plan to shift or have already moved production to the U.S., driven by trade uncertainty and policy concerns.

The report highlights that 29% of firms have already relocated operations, citing tariffs, tax incentives, and long-term business strategy as key factors.

Over half (55%) of respondents remain committed to the 'Buy Canadian' movement, while 60% continue significant investment in advanced manufacturing.However, 80% intend to maintain Canadian headquarters, reflecting a complex balance between domestic and international interests.The study underscores growing concerns about the Canada-U.S.-Mexico Agreement (CUSMA) renewal process, with 62% of firms worried about the long-term business environment.KPMG analysts note that U.S.policy changes, such as requirements for foreign companies to own physical assets, could strain commercial relationships.

Despite these challenges, 96% of exporters claim their products qualify for tariff-free treatment under CUSMA, though the Trump administration's decision to opt for annual reviews instead of a 16-year extension has raised uncertainties.

The findings highlight the broader economic implications of trade policies on Canadian manufacturing and the strategic adaptations firms are making to navigate a shifting global landscape.