13 February 2018

“The new tax reforms together with growing NAFTA uncertainties increase the possibility of investments switch from Canada to out southern neighbor,” – they said.

In addition to it, strategists at CIBC say lower taxes in the U.S. make Canada a less attractive location for headquarters. Moreover, manufacturing is becoming less competitive, and Canadian firms will face strong competition from the U.S. in the sector of mergers and acquisitions.

“With a new tax code, CEOs will have more reasons to locate or even move their existing headquarters from Canada to the U.S.,” – says CIBC.

On Friday, Finance Minister Bill Morneau will have a pre-budget meeting with leading Canadian economists.