Half of small businesses no longer see U.S. as reliable trade partner: CFIB

One year after the United States imposed tariffs on Canadian goods, more than half of small businesses say they no longer view the U.S. as a reliable trading partner, according to new data from the Canadian Federation of Independent Business (CFIB).

The federation says 52 per cent of small firms have lost confidence in the U.S. market since the trade dispute began.

“Small businesses have faced massive uncertainty since the trade battle began last year,” said Dan Kelly, CFIB president. “Small business owners have been dealing with the whiplash of trying to keep up with sudden changes and threats, including many that don’t happen or are revised within hours. With CUSMA coming up for review in the months ahead, the stakes are even higher.”

Three-quarters of respondents said the tariff fight has strained relationships with American partners or clients, up from 49 per cent in March 2025. Overall, 68 per cent reported being negatively affected by U.S. tariffs, while 44 per cent said steel and aluminum tariffs imposed by both countries remain a major challenge.

The CFIB says fewer than one per cent of small businesses have applied for the federal Regional Tariff Response Initiative and 77 per cent are unaware the program exists. It argues eligibility rules have limited access, including minimum employee thresholds in British Columbia and revenue requirements for manufacturers in Quebec, where applications are now closed.

“We keep hearing the same things from small business owners: they’re too small to qualify, they didn’t know about the program, or that the required paperwork isn’t worth the time and resources,” said Corinne Pohlmann, CFIB executive vice-president of advocacy. “Many retailers and wholesalers were hit hard by counter-tariffs, but they still didn’t qualify. The program was poorly designed for the very small businesses it was supposed to help.”

The federation says it recently wrote to Prime Minister Mark Carney, Finance Minister Champagne and Canada’s regional development agencies to question the program’s design and effectiveness.

CFIB is calling on Ottawa to reduce the small business tax rate from nine to six per cent, implement a rebate program for tariff-impacted firms and ensure rebates are not treated as taxable income and maintain the Canada-United States-Mexico Agreement to restore stability.

“Small business owners are telling us they feel abandoned in dealing with tariff costs,” said Michelle Auger, CFIB director of trade and marketplace competitiveness. “With fewer people starting businesses, we can’t afford to overlook the ones we have. Ottawa needs to step up and find better ways to help.”

The findings are based on CFIB’s Your Voice survey conducted online from Feb. 5 to 24, with 1,379 respondents.