Businesses in Canada express lower confidence in stability of North American trade than those in U.S.
New study from Livingston International shows Canadian businesses are actively looking for new sources of supply and export opportunities in face of trade volatility
- 25 per cent of Canadian businesses express a lack of confidence in the stability of the North American trade environment over the next five years, compared to only eight per cent in the U.S.
- While the majority of Canadian businesses use the United States-Mexico-Canada Agreement (USMCA), only a quarter currently see it as a reason to be confident in the North American trading environment.
- Nine out of 10 Canadian importers are considering alternative sources of supply from those they are currently using.
- Two-thirds (64 per cent) of Canadian businesses are passing some of the cost of surtaxes and other trade-disruption expenses down to consumers.
TORONTO, Oct. 29, 2026 /CNW/ — Canadian businesses are actively seeking out alternative sources of sales and supply outside of North America as they adjust to to the uncertainty of the current trade environment shows a new report.
According to Livingston’s 2026 Trade Dynamics Report, a new study commissioned by customs broker and trade consultancy Livingston International, nine in 10 Canadian importers are looking at new sources of supply with strong emphasis outside North America on Asia, the European Union and United Kingdom, as well as Central and South America. Among exporters, 85 per cent are looking at alternative markets as the cost and complexity of trade in North America escalates due to tariffs, countermeasures, regulatory changes and more.
“Canadian businesses recognize that a new dynamic has taken shape in North America and while there continues to be–and will likely always be–a natural tie to the U.S. market, many businesses are looking at opportunities in other markets to de-risk from future disruption and explore new export opportunities,” said Robert Smith, Chief Executive Officer, Livingston International.
- 82 per cent of Canadian businesses list countries in Asia as key alternative export markets.
- 58 per cent and 50 per cent respectively cite the EU/UK and Central/South America as their primary alternative markets for exports.
- Canadian businesses are far less likely than their U.S. counterparts to want to move production that’s currently outside of North America back to the continent (68 per cent in Canada versus 84 per cent in the U.S.).
Businesses are incurring significant cost as a result of trade disruption even as their competitiveness wanes. Two-thirds (64 per cent) of Canadian businesses are passing down some or all the cost of tariffs to their consumers while 20 per cent are absorbing all the cost. Only 14 per cent report being minimally or not impacted by shifting trade policies.
“Both empirically and anecdotally it is clear from our research that Canadian importers and exporters are feeling the weight of fast-paced and frequent changes to trade policies and processes,” said David MacDonald, Group Vice President, Financial Services, Environics Research, which carried out the study.
In addition to costs associated with tariffs, businesses are in a state of angst over their ability to meet their customs obligations under constantly shifting requirements. Nearly two-thirds (63 per cent) of Canadian businesses (versus 76 per cent of U.S. businesses) say they were only somewhat prepared or ill-prepared for policy changes and worked to ensure compliance but struggled to validate their level of customs compliance. In addition, between 71 per cent and 73 per cent are struggling to find talent and expertise to understand the changes and what’s required of them; keep up with the pace of change in trade policy; and harness the power of emerging technology to automate trade compliance.
“The shifts taking place in today’s North American trade environment have brought to the forefront the complexity in managing continental and global supply chains, and the importance of getting ahead of potential disruptors before they unexpectedly add risk, cost and effort,” said Smith.
The research polled companies in the U.S. and Canada across 12 industries in an online survey conducted between August 20th and September 9th, 2026.
For more details, download Livingston’s 2026 Trade Dynamics Report.
About Livingston International
Livingston International has served as a trusted trade adviser to businesses around the world for 80 years. It specializes in customs brokerage and trade compliance, and offers international trade consulting, global trade management and freight forwarding. Livingston provides clarity in a world of trade complexity, and reliability in times of volatility, so businesses can grow further, smarter and with confidence. Livingston employs approximately 2,700 associates at key border points, sea ports, airports and other strategic locations across North America, Europe and Asia. To learn more about Livingston, visit www.livingston.com.
SOURCE Livingston International Inc.
