As Canada prepares for the release of the 2026 federal budget, business leaders are expressing cautious optimism, hoping for concrete actions that will support economic growth. A recent poll by KPMG found that 71% of business leaders anticipate a business-friendly budget from the federal Liberals, reflecting their confidence in Prime Minister Mark Carney’s economic strategy. The optimism, however, is tempered by the need for tangible results, as the economic outlook remains fragile due to trade tensions with the U.S.
The poll also revealed strong support for diversifying Canada’s economy beyond the U.S. market. 76% of respondents said expanding access to non-U.S. markets is now more critical than it was six months ago, while 84% endorsed pursuing partnerships with more stable trading partners like the European Union. Lachlan Wolfers, national leader at KPMG Law Canada, emphasized that the budget must accelerate efforts to expand market access amid ongoing uncertainty.
Competitiveness remains a key concern for Canadian businesses. The poll found that 72% of leaders are willing to be patient in negotiations for a favorable trade deal with the U.S., but nearly three-quarters believe improving Canada’s competitiveness is more urgent than securing such an agreement. Wolfers argued that addressing competitiveness requires a multi-pronged approach, including regulatory and tax reforms, as well as removing interprovincial trade barriers.
Despite broad support for the government’s economic agenda, business leaders are eager for swift implementation. Wolfers noted that Canadian firms are already feeling the impact of tariffs, underscoring the need for the federal budget to translate the government’s strategy into actionable policies. The overarching goal, according to KPMG, is to strengthen Canada’s ability to compete in an uncertain global economy.