Manufacturing CEOs Want Canada to Mirror Trump Tax Cuts
'Only Reason Why the Industry in the US Is Not in Worse Shape Is Because of the Big Tax Package That Was Passed,' Says 1 Exec
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Manufacturing executives say the Canadian government should take inspiration from Donald Trump’s tax cuts to help businesses remain competitive as they face cost pressures and uncertainty from U.S. tariffs.
In a roundtable interview with journalists in Ottawa on Oct. 21, executives from the Canadian manufacturing sector showcased their wish list ahead of Prime Minister Mark Carney’s first budget on Nov. 4.
Kip Eideberg, senior vice-president of government and industry relations at the Association of Equipment Manufacturers, said the sector is encouraging the government to pursue corporate tax incentives similar to the ones in Trump’s One Big Beautiful Bill, which passed earlier this year.
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“The only reason why the industry in the U.S. is not in worse shape is because of the big tax package that was passed,” said Eideberg.
“Whether it’s R&D, whether it’s bonus depreciation, all of those provisions that were extended or made permanent, have been a massive boon to the industry in the U.S. So we’ve been encouraging the Canadian government to look at that and do the same.”
Trump’s bill included several tax cuts for businesses, including by making permanent key provisions of a 2017 law passed during his first administration, such as a 21%corporate tax rate.
Last December, the Canadian government under then-prime minister Justin Trudeau proposed to extend theaccelerated investment incentive, which allows businesses to save taxes by booking depreciation faster on certain assets, including capital property, machinery and equipment.
It also pledged immediate expensing for manufacturing or process machinery and equipment, clean energy generation and energy conservation equipment and zero-emission vehicles.
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It’s unclear whether Carney’s government plans to move forward with those measures.
In a recent interview with Bloomberg News, Finance Minister Francois-Philippe Champagne wasreluctantto offer any details on changes to corporate taxes ahead of the budget, although he said he’s focused on ways “to make sure that Canada remains competitive.”
The manufacturing executives appeared optimistic that the federal government will in fact prioritize growth in the upcoming budget.
“I think it’s going to be a pro-business, pro-growth budget,” said Jim Jarrell, CEO and president of Linamar Corp. “I think it has to be.”
Jarrell suggested the Canadian government should consider increasing its C$5 billion ($3.6 billion) allocation for itsstrategic response fund, which was launched in September to help industries affected by U.S. tariffs transform their operations.
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