Canadian Businesses Demand Regulatory Reform Amid Trade Uncertainty
A recent KPMG Canada survey found that two-thirds of Canadian businesses have adjusted prices to cover tariff costs, and regulatory gridlock is constraining new housing supply across the country.
The survey, conducted between June 25 and July 13, polled 359 business owners and decision-makers at firms with annual revenues exceeding $10 million. Just over half, or 51%, expect the federal government's economic measures to leave their businesses better off over the next three years, but regulatory red tape has been driving up Canadian home prices.
The KPMG survey found that business leaders ranked removing red tape and accelerating regulatory reform as their top government priority, tied at 50% with fast-tracking a new west coast oil pipeline. Regulatory gridlock is straining housing supply, with Canada Mortgage and Housing Corporation research showing a 10% increase in municipal regulatory restrictiveness correlates with a 14% rise in house prices.
The survey also reflects the broader trade volatility gripping Canadian business, with nearly seven in ten (69%) surveyed leaders wanting Canada to hold a tough negotiating stance at the CUSMA table. This environment has direct consequences for borrowers, as the Bank of Canada has held its overnight rate at 2.25% since October 2025.