CFIB says small businesses hardest hit by tariffs, calls for government relief

Canada’s small businesses are bearing the brunt of ongoing trade tensions with the United States, according to new data from the Canadian Federation of Independent Business (CFIB).

The federation says 59 per cent of small firms are being hurt by U.S. and Canadian tariffs on steel and aluminum, while 58 per cent are impacted by Canada’s retaliatory tariffs on other U.S. goods. Nearly one-third of small and medium-sized enterprises also report negative effects from the loss of the $800 U.S. de minimis exemption.

“Small businesses don’t have a lot of runway left. They are trying their best to absorb the costs, but if nothing changes, they will be forced to make some tough decisions,” said Corinne Pohlmann, CFIB’s executive vice-president of advocacy.

CFIB says nearly two-thirds of small businesses face higher expenses, while 48 per cent are seeing lower revenues, 41 per cent are grappling with supply chain disruptions and 36 per cent have paused investments. Nineteen per cent of those paying extra tariff costs say they will not survive more than six months if conditions don’t change, while 38 per cent say they won’t last a year.

With Ottawa collecting billions in tariff revenue, 82 per cent of small business owners say government support should include relief for those directly and indirectly affected.

“The trade war’s impact on Canada’s small businesses should be top of mind for the government as Canada continues its negotiations with the U.S. Canada can’t fix its productivity crisis without empowering its entrepreneurs,” Pohlmann said. “If the government wants to build one Canadian economy, it needs to ensure small businesses are part of the solution and that includes providing them with tariff support during this very challenging time.”