CFIB warns tariffs would raise costs for small businesses, calling for tax cuts and trade barrier fixes
The Canadian Federation of Independent Business (CFIB) has warned that a 25 percent US tariff on Canadian products, coupled with potential retaliatory Canadian tariffs, would have significant consequences for small businesses.
According to CFIB, 65 percent of small businesses would increase consumer prices to offset the effects of tariffs. Additionally, 69 percent of business owners reported that tariffs would raise operational costs.
CFIB executive vice-president of Advocacy, Corinne Pohlmann, stated that a trade war would have severe consequences for Canadian small businesses and consumers.
Pohlmann emphasized the importance of governments addressing the tariff threat while also focusing on maintaining competitiveness for Canadian businesses.
She added, “The solution is a no-brainer. This is an SOS call to all governments: reduce red tape, eliminate internal trade barriers, and ease the tax burden on small businesses.”
The US remains Canada’s largest trading partner, with 51 percent of small businesses directly involved in importing from or exporting to the US. Thousands more rely on suppliers or customers engaged in US trade.
New CFIB data revealed that 82 percent of small businesses would be affected by tariffs.
Business owners anticipate limited inventory and reduced product availability, as well as the need to find alternative markets or suppliers if tariffs are imposed.
Earlier this week, CFIB sent a letter to all premiers, highlighting concerns over the tariff threat and offering recommendations.
A majority of business owners (62 percent) believe Canadian governments must reduce the tax burden, while an equal percentage support strengthened border security to address US concerns. The letter also emphasized the importance of addressing interprovincial trade barriers.
Pohlmann emphasized that it remains “ridiculous that it’s still easier for Canadian small firms to do business overseas or across the border than within their own country.”
She urged governments to take action, stating that “now is the time for governments to step up and support Canada’s small businesses so they can be more productive and competitive in the face of tariff threats.”
