Canadian Businesses Remain Optimistic, Despite Trade War

Despite the brewing trade war between the U.S. and Canada, business leaders in Canada are largely unfazed. Their optimism and expectations for hiring and investment have remained much the same.

A recent business outlook survey discovered that Canadian business’ investment plans – a key indicator of where the economy is headed – are “slightly weaker” than the previous survey, but still strong. In addition, the employee indicator continues to climb, according to the Bank of Canada; this suggests broad-based hiring plans across the country.

After the survey’s release, CIBC Capital Markets chief economist, Avery Shenfeld, commented: “Who’s afraid of Donald Trump? Apparently, not Canadian business leaders.”

So, what does Trump hope to accomplish with this trade war? U.S. President Trump’s trade war has continued to grow and reach new levels. Beginning back in January with tariffs on solar panels and washing machines, the list has now grown to 10,000 items traded around the world. Experts are saying if the dispute continues, it could have a lasting impact on the global economy. His ultimate aim seems to be to get American companies and American citizens to buy, make and hire American.

Although the results of the survey were positive, the bank does acknowledge that the survey was carried out before the announcement of tariffs on steel and aluminum imports from Canada by the U.S. administration. It was also released before the unpleasantness between Trump and Trudeau at the G7 summit. Even so, the data continues to show a solid economic performance.

What to Expect Moving Forward

Michael Manjuris, professor and chair of global management studies at Ryerson University says that he sees hope for many Canadian companies, specifically mentioning Canadian metal companies. He explains that they could still come out ahead, just like Canadian softwood lumber (a decades-long dispute). Despite import duties placed on Canadian softwood, the U.S. still imports a lot.

“They just pay more for it,” says Manjuris.

He went on to say that “Import duties cause trade diversion. It will change the way we do business, but it will not hurt.”

In the days to come, Canadian businesses may need to seek additional services to help them continue to grow, expand and hire new workers. An increasingly sought-after solution is a Canadian merchant account. This merchant service not only allows businesses to offer safe payment processing and multiple payment options to customers, but it also provides access to business funding. This cash solution can help fuel Canadian business leaders’ optimism and plans to expand, despite the brewing trade war.

Author Bio: Electronic payments expert Blair Thomas co-founded eMerchantBroker, serving both traditional and high-risk merchants with options like a Canadian merchant account. His passions include producing music and traveling.

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