Business leaders want the federal government's 2026 budget to deliver economic reforms, improve tax competitiveness and support trade diversification, according to a new KPMG Canada survey.
The survey of 346 business leaders found that 87 percent support greater economic self-reliance and diversification, while 73 percent consider reforms to improve Canada's competitiveness more important than securing a trade agreement with the United States.
Seventy-one percent expect the budget to be business-friendly and improve their company's growth prospects. However, confidence varies by company size: 54 percent of businesses earning between $10 million and under $100 million expressed confidence, compared with 82 percent of companies generating at least $1 billion annually.
The Canada-US trade conflict and tariff impacts ranked as the leading economic concern, cited by 62 percent of respondents. Other priorities included attracting foreign investment and retaining capital in Canada (44 percent), accelerating major projects (34 percent), addressing cost pressures (34 percent), and tax competitiveness, reform and reducing red tape (26 percent).
Business leaders support broader tax reform
The survey found strong support for changes to Canada's tax system. Eighty-seven per cent want a comprehensive tax review, 85 percent favour simplifying the system to reduce complexity, and 82 percent believe Canada needs a more competitive tax system.
"While tax incentives can help drive specific outcomes, they are no substitute for comprehensive tax reform that improves competitiveness and reinvigorates the economy," said Lachlan Wolfers, national leader of KPMG Law.
Trade diversification also emerged as a priority. Seventy-six per cent consider expanding beyond US markets more important than six months earlier, while 84 percent support pursuing a special partnership with the European Union and other stable trading partners.
Despite tariff pressures, 72 percent favour waiting for a better US trade agreement, even if doing so causes economic difficulties. Meanwhile, 77 percent support Canada's decision to suspend trade negotiations and impose counter-tariffs.
However, 55 percent reported significant business challenges resulting from Canada's counter-tariffs.
KPMG surveyed Canadian business owners and decision-makers in the Angus Reid Forum from September 22 to October 2, 2026.