As CUSMA (the Canada-United States-Mexico Agreement) negotiations move into their next phase, the Canadian Federation of Independent Business (CFIB) is calling on the federal government to ensure small business priorities are front and centre.
“Small business owners are frustrated. The ongoing uncertainty around tariffs and trade has delayed real decisions on investment and growth. Protecting Canada’s existing CUSMA exemptions must remain government’s top priority,” said Dan Kelly, CFIB president. “While Canada’s continued tariff-free CUSMA access has helped enormously, small businesses are facing several major pain-points, including sectoral tariffs on steel and aluminum and challenges for small volume exporters in demonstrating CUSMA compliance.”
The CFIB is Canada’s largest association of small and medium-sized businesses with 103,000 members across every industry and region.
According to CFIB’s latest research, 64% of small businesses support taking the time needed to secure the best possible terms for renewed or renegotiated CUSMA, compared to only 16% who would prefer a quicker but potentially less favourable agreement.
Canada–U.S. business relationships have weakened significantly during the trade war, with 75% of SMEs saying the tariff fight has strained their relationships with U.S. partners or clients in April 2026, up sharply from 49% in March 2025. Only 40% of small firms now view the U.S. as a reliable trading partner, said the organization.
As a result, 48% of SMEs trading with the U.S. have shifted to non‑U.S. suppliers or customers. Among those, nearly three-quarters are pivoting to domestic markets. Beyond Canada, Asia (40%) and EU countries (39%) are the top alternatives though high shipping costs, border delays and complex custom procedures limit broader trade diversification, it added.
“While business owners are doing what they can to diversify their trade, we’re never going to be able to entirely replace the 340-million-person market that exists right along our border. That’s why it’s so important to get this right and get a deal that business owners are confident will hold for years to come,” said Kelly.
As talks continue, the CFIB said negotiators should seek out areas where there is common ground for improvement, including making CUSMA more accessible to small business owners, streamlining customs rules at the border and clarifying rules of origin.
“As negotiators look ahead to the next version of the agreement, they need to understand it’s not an easy process for small businesses to navigate. Unclear rules of origin, and high compliance and administrative costs mean some small firms are forced to weigh paying tariffs instead of using CUSMA,” said Corinne Pohlmann, CFIB executive vice-president of advocacy. “We can do better. Ottawa must ensure that small business voices are included in trade negotiations and secure a deal that is clear, accessible and works for businesses of every size.”
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