A majority of small- and mid-sized businesses (62%) say they’re taking a hit due to the ongoing U.S.-Canada trade war, finds data from the Canadian Federation of Independent Business (CFIB)’s upcoming Monthly Business Barometer®.
About a quarter indicate no impacts yet, while 12% are unsure about the impacts. Most of affected firms are in the manufacturing, wholesale, and transportation sectors, reported Canada’s largest association of small and medium-sized businesses with 100,000 members across every industry and region.
“To say that small businesses are feeling worried is an understatement. No one likes to be strung along, small business least of all. The everchanging news developments and the constant on-again, off-again tariff threats are exhausting and just very bad for the economy, investment and long-term business planning,” said Simon Gaudreault, CFIB’s chief economist and vice-president of research.
Small businesses need stability, said the CFIB, which is urging the federal government to recall Parliament immediately to scrap the upcoming 19% carbon tax increase and pass legislation to make sure carbon tax rebates are tax free.
Government must also pass proposed legislation to increase the lifetime capital gains exemption threshold to $1.25M and ensure the promised Canadian Entrepreneurs’ Incentive stays in place. Ottawa should also ensure that any funds collected from Canadian retaliatory tariffs is returned to affected businesses as quickly as possible, added the organization.
“We cannot wait until Parliament is back on March 24 to sort out the current mess and allow the ongoing uncertainty to drag on for any longer. Ottawa owes it to small businesses to provide some clarity and assurance in these turbulent times. The expansion of the EI Work-Sharing Program, announced as part of the federal support measures last Friday, could help businesses avoid layoffs during the uncertain times. But we’re not so sure about the other supports. Small businesses need help keeping doors open, not taking on more debt through loans,” said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB.
“One thing government could do is help offset high shipping costs for small firms looking to reach a new export market or a supplier outside of the U.S.”
Small business impacted by U.S.-Canada tariffs can visit CFIB’s website to share their stories and learn more about the latest tariff developments: cfib.ca/tariffs.
