The Trump administration’s 25% across-the-board tariffs are a massive broadside to the Canadian economy and come at a time of great political and economic uncertainty, says the Canadian Federation of Independent Business (CFIB).
“Governments across Canada need to move into action mode. The majority of small business owners support retaliatory tariffs but recognize that they will hit an even broader swath of our economy than the US tariffs themselves,” said Dan Kelly, President and CEO of the CFIB.
“Many small businesses have already experienced higher costs, cancelled contracts/orders, and lower demand due to the ongoing threats. Now that they’ve been imposed, we expect to see these challenges rapidly escalate.
“Sadly, this is not the end of it. We may see additional tariffs on steel and aluminum on March 12 and on another round of products on April 2.”
The CFIB is Canada’s largest association of small and medium-sized businesses with 100,000 members across every industry and region
Last week, Nova Scotia Premier Tim Houston followed through on a long-standing CFIB recommendation to break down internal trade barriers by mutually recognizing the rules of other provinces. Ontario Premier Doug Ford signalled he would do the same. Other provinces and territories need to step up now and match these actions to allow for true free trade within Canada. There is no time to waste, explained the CFIB.
“The federal government should recall Parliament immediately to ensure that Canadian businesses have the support they need and that every dollar Canada collects in tariffs is returned to affected businesses as quickly as possible. The federal government can also send a clear message that Canada is open for business and investment by providing carbon tax clarity and stopping the April 1 increase, passing legislation to make sure carbon tax rebates are tax free and passing proposed legislation to increase the lifetime capital gains exemption threshold to $1.25M and putting the promised Canadian Entrepreneurs’ Incentive stays in place. Political and policy uncertainty is the last thing the country needs at this moment,” added Kelly.
“As we mark five years since the start of the pandemic, Canadian businesses have faced two massive economic threats – the pandemic and an emerging trade war with our largest economic partner. All of us need to come together and do all we can to support local, independent Canadian businesses.”
For more information on the impact of tariffs on small businesses, visit cfib.ca/tariffs.
On Monday, Prime Minister Justin Trudeau issued the following statement on “unjustified U.S. tariffs against Canada”:
“Today, after a 30-day pause, the United States administration has decided to proceed with imposing 25 per cent tariffs on Canadian exports and 10 per cent tariffs on Canadian energy. Let me be unequivocally clear – there is no justification for these actions.
“While less than 1 per cent of the fentanyl intercepted at the U.S. border comes from Canada, we have worked relentlessly to address this scourge that affects Canadians and Americans alike. We implemented a $1.3 billion border plan with new choppers, boots on the ground, more co-ordination, and increased resources to stop the flow of fentanyl. We appointed a Fentanyl Czar, listed transnational criminal cartels as terrorist organizations, launched the Joint Operational Intelligence Cell, and are establishing a Canada-U.S. Joint Strike Force on organized crime. Because of this work – in partnership with the United States – fentanyl seizures from Canada have dropped 97 per cent between December 2024 and January 2025 to a near-zero low of 0.03 pounds seized by U.S. Customs and Border Protection.
“Canada will not let this unjustified decision go unanswered. Should American tariffs come into effect tonight, Canada will, effective 12:01 a.m. EST tomorrow (March), respond with 25 per cent tariffs against $155 billion of American goods – starting with tariffs on $30 billion worth of goods immediately, and tariffs on the remaining $125 billion on American products in 21 days’ time. Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures. While we urge the U.S. administration to reconsider their tariffs, Canada remains firm in standing up for our economy, our jobs, our workers, and for a fair deal.
“Because of the tariffs imposed by the U.S., Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs. Tariffs will disrupt an incredibly successful trading relationship. They will violate the very trade agreement that was negotiated by President Trump in his last term.”
Restaurants Canada condemns the U.S. government’s unjustified tariffs on Canada and supports federal and provincial governments in defending Canadian interests. A tariff war will hurt businesses and workers on both sides of the border.
Restaurants are a major driver of the Canadian economy and the fourth largest private sector employer, contributing $120 billion annually and employing 1.2 million Canadians. Our industry supports local economies in every community across the country. We have been and will continue working with governments on crafting a Canadian response that protects Canada while minimizing the impacts on our economy.
We applaud recent efforts by the federal government and Nova Scotia, Ontario and British Columbia in reducing interprovincial trade barriers, and we urge other governments to follow their lead. A strong internal trade infrastructure will lead to more product availability, innovation and stability for the Canadian economy.
Food is essential and we continue to ask the Canadian government to consider exempting a limited number of specific food items and food packaging from its retaliatory tariff response. Without that exemption prices will increase and hurt Canadians already dealing with affordability challenges. It will also lead to job loss in the foodservice industry.
We also urge the federal government to exempt all food from sales tax, as it did during the GST/HST holiday. The two-month period led to unprecedented job growth in our industry—making it permanent would support Canadian job stability and bolster economies across the country. It is an important affordability measure that is good for Canadians, good for workers and good for business.
If the government can’t exempt critical food and food-safe packaging from tariffs, it can soften the blow for the foodservice industry by:
- Providing manufacturing credits to enable food and packaging manufacturers to expand production quickly.
- Loosening regulations around packaging requirements from out of country products that may be substitutes for American-made products.
- Rolling out a wage subsidy program to keep employees connected to their workplaces and prevent job losses.
Provincial governments can also help the restaurant industry weather the removal of U.S. liquor from provincial liquor board shelves by deepening alcohol wholesale discounts and making it easier to buy wine and other products across provincial lines.
Per Bank, CEO & President, Loblaw Companies Limited
It’s hard to believe we’ve reached this point but today marks the beginning of a trade war between Canada and the United States. Misguided threats of sweeping tariffs from American leadership have resulted in necessary counter-tariffs here at home.
Understandably, people in Canada are worried… about the impact this will have on inflation and the cost of living, on their livelihoods, and on the price of groceries. We’re trying hard to support consumers.
Our actions to date include:
1. Buying Canadian: We are already one of the largest purchasers of Canadian products, and we’re doubling down. We’re looking for new ways to secure as much food as possible that is grown or made/prepared in Canada. In fact, we’ve onboarded about 30 new Canadian suppliers this year alone.
2. Alternative sourcing options: Where we historically purchase directly from the U.S. – because product is not grown or made in Canada – we’re working to source options from within Canada and around the world. Our goal is comparable quality and price.
3. Highlighting Canadian: Our customers want us to highlight Canadian companies, brands and products in-store and online. So we are. Customers can look for symbols in-store for products prepared in Canada, and soon, for products affected by tariffs. We are featuring Canadian items in our promotions and flyers, offering points for Canadians products through PC Optimum, and enabling customers to ‘swap’ their chosen product for a Canadian alternative through PC Express.
4. Advocating for Canadians: We will continue to advocate for Canadian consumers. For example, we’re talking to Government and many participants in our supply chain to decode the many potential consequences of this situation. This includes asking the Canadian government to exempt the most essential U.S. products from possible counter-tariffs, especially where customers have limited alternatives.
Canadians are highly resilient, and the country has a history of tackling big issues and opportunities. We know that will be the case with tariffs as well. And while there will undoubtedly be challenging times ahead while these trade measures are in place, we will do our part to be transparent about the impacts, fair in how they are applied, and work hard to mitigate the consequences.
