'Until there is a party change, things [will] continue to spiral out of control for business in a multitude of ways'
Many employers expect things to turn for the better following the resignation of Prime Minister Justin Trudeau.
More than half of Canadian CEOs believe that the change in leadership in Ottawa will have a significantly positive (33%) or slightly positive (24%) impact on their business, reports the Chief Executive Group.
Far fewer are those who expect the change to have a significantly negative or slightly negative (both 4%) impact on business.
Meanwhile, nearly a quarter (22%) say the change will have no impact on their business, while 12% state that they are not yet sure about its effect.
“Conservative policies are much more business-friendly for Canadians and global investors,” says Iain Sewell, president and general manager at South Fork Energy Services in Alberta in the report.
“This is entirely dependent on exactly whom we elect,” adds Marv Thielmann, CEO of Timberstone Properties in Edmonton.
Over a third (35%) of Canadian CEOs think their businesses might not be viable in 10 years, according to a previous PwC report.
“Until there is a party change, things [will] continue to spiral out of control for business in a multitude of ways,” says Joe Strang, CEO of The Showcase Group, a Calgary-based audio visual and smart home automation company. “Otherwise, Canada will be a complete business disaster.”
Earlier this month, Prime Minister Justin Trudeau announced he will step down as leader of the Liberal Party, citing internal divisions and the need for a "real choice" in the next federal election. He will remain in office until the party selects a new leader.
Overall, Canadian business leaders rate the current business environment at 5.4 out of 10, according to the Chief Executive Group’s survey of more than 200 CEOs across Canada conducted Jan. 20-24, 2025.
That represents a decrease of 5% from November 2024, according to the report.
Business leaders also believe that business conditions will be at 6.1 out of 10 within a year, up 2 percent since November and a 12% increase from what they are today.
Overall, 51% of Canadian CEOs say they expect business conditions to improve in 2025, up 9 percentage points from 42% in November. The proportion who expect conditions to deteriorate remain flat at 26%, while those who forecast no change decreased from 31% to 22% this January.
This is the case even though U.S. President Donald Trump has threatened to impose a 25% tariff on all Canadian imports to the U.S.
Despite the threat, the majority of CEOs do not believe Trump’s threat will materialize.
Source: Chief Executive Group
Whatever the case, 87% say they are prepared to deal with those tariffs and that even if they may impact the course of business initially, they will be able to pivot and adjust accordingly. Only 13% say it would be devastating for their companies.
The bigger issue is how long the tariffs will stay in place before a new trade agreement is reached, according to the report.
“The tariffs are not the issue. The length of time they are in place is the important fact and then, what, if any, response is necessary,” says Chris Tambakis, CEO of Adgar Canada, an active, long term real estate investor, developer and manager with holdings in Canada, Israel and Europe.
As Canada faces a significant challenge with U.S. President Donald Trump threatening to impose tariffs on all products entering the U.S. from Canada, a purely retaliatory response can only make things worse, according to one expert.
Ottawa could impose countermeasures on up to $150 billion worth of US imports if Trump pushes through with his threat, according to a previous Reuters report.
However, Trudeau, it seems, is opting for peace amid the tariffs issue. He promised to help Trump achieve America's "golden age,” according to a CBS report.
Ontario Premier Doug Ford and Alberta Premier have also called for a partnership between Canada and the U.S. amid the tariffs issue.
