Canadian business leaders are signaling optimism regarding the upcoming 2026 federal budget under Prime Minister Mark Carney. according to a recent KPMG poll released on October 15, 2026, 71% of respondents believe the government's fisscal plan will bolster their economic prospects.
A 76% mandate for non-U.S. market diversification
A significant majority of Canadian firms are looking to move beyond American trade dependencies to stabilize their futures. The KPMG poll highlights that 76% of business leaders believe diversifying into non-U.S. markets is more vital today than it was half a year ago. furthermore, 84% of those surveyed support the Carney government’s efforts to forge partnerships with more stable trading entities, such as the European Union.
This strategic pivot comes as Canada faces a uniquely challenging trade environment. While many thousands of domestic firms still rely on access to U.S. markets, 72% of business leaders told KPMG they are willing to be patient during negotiations if it results in a more favorable long-term trade deal. This suggests that the business community is prioritizing long-term stability over immediate, potentially volatile, trade wins with the United States.
Lachlan Wolfers on the need for tax and regulatory reform
Lachlan Wolfers,the national leader at KPMG Law Canada, suggests that internal reforms are just as vital as external trade successes. In an interview with BNN Bloomberg, Wolfers noted that businesses are currently struggling with high compliance costs and a tax system that is not properly equipped for a modern economy. he argued that for Canada to close its competitiveness gap, the 2026 federal budget must address interprovincial trade barriers and implement meaningful regultory changes.
The demand for domestic reform is clearly outpacing the desire for new international agreements. According to the report, nearly three-quarters of business leaders believe that improving Canada's overall competitiveness is a higher priority right now than securing a new trade deal with the United States. This sentiment is echoed by the 90% of leaders who support Canada becoming more economically self-reliant in the face of global uncertainty.
What specific reforms will satisfy the 9-in-10 leaders?
The 2026 federal budget faces immense pressure to deliver specific domestic improvements that go beyond general economic rhetoric. While the KPMG poll shows broad support for the Carney government's general agenda , several critical details remain unverified. The report notes that "tangible results" are required, yet it does not specify which exact tax incentives or regulatory rollbacks are most demanded by the private sector. Additionally, while Wolfers mentioned that current tariffs are beginning to "bite," the source does not identify which specific industries are bearing the brunt of these costs. It remains to be seen if the federal Liberals can translate this high level of optimism into the concrete, granular policy changes that the business community is demanding.
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