Two-thirds of Canadians say that the trade relationship with the United States is “very” or “extremely” important for the Canadian economy, according to a recent survey.
The Ipsos poll, commissioned by think tank MEI, surveyed 1,000 Canadians on the country’s relationship with the United States. The survey was completed online between Sept. 29 and Oct. 1.
Of those surveyed, 66 percent said the economic relationship between Canada and the United States was “very” or “extremely” important for the country’s economy, while 24 percent said the relationship was “somewhat important.” Just five percent of respondents said it was not very important, or not at all important.
More than half said that signing a new deal with the United States should be the top priority of elected officials.
Nearly three-quarters of Canadian exports are sent to the United States, predominantly within sectors such as energy, metals, and auto manufacturing, according to an RBC analysis published in January.
A majority of survey respondents (68 percent) said that if Ottawa fails to reach a trade agreement with its southern neighbour it will have negative effects on employment in Canada. Just 7 percent said there was no significant risk of job losses.
This week, automaker Stellantis announced that it will be moving planned production of its Jeep Compass from its Brampton Assembly Plant in Ontario to Belvidere, Illinois. The move is part of a US$13 billion investment the company is making in manufacturing operations in the United States. It will impact about 3,000 jobs in Brampton.
Prime Minister Mark Carney said the decision by Stellantis was “direct consequence of current U.S. tariffs and potential future U.S. trade actions.”
U.S. President Donald Trump has imposed a number of tariffs on Canada this year, including 25 percent tariffs on vehicles and auto parts in April. He has also announced 25 percent tariffs on all medium- and heavy-duty trucks entering the United States beginning in November.
Trump has also implemented a 50 percent tariff on copper, aluminum, and steel imports, a 45 percent tariff on softwood lumber. More recently announced was a 100 percent tariff for Canadian pharmaceuticals, as well as a 50 percent levy on kitchen cabinets and bathroom vanities, and a 30 percent tariff on upholstered furniture.
Trump has increasingly leveraged more tariffs against Canada since the spring, raising its 25 percent tax on all imports that do not adhere to the United States-Mexico-Canada Agreement (USMCA) to 35 percent on Aug. 1.
MEI founding president, Michel Kelly-Gagnon said the survey results demonstrate that “a cordial relationship with our immediate neighbour remains a priority for Canadians.”
“Whether it be trade, security, research and development, or the management of shared resources, Canadians recognize that good relations between Canada and the United States have been mutually beneficial,” Kelly-Gagnon said.
Jennifer Cowan contributed to this article.
