Toronto, August 1, 2025 – The hike in U.S. tariffs to 35% will harm small businesses on both sides of the border. The fentanyl rationale is even more ridiculous than the decision itself.
While it is good news that most Canadian exports will remain tariff free due to the CUSMA/USMCA exemption, the uncertainty alone will continue to take a toll on Canada's small businesses.
CFIB supports the view that no deal is better than a bad deal, but the lack of resolution means small firms will not be able to plan for the future or continue to put off difficult choices. Many businesses have been holding off layoffs or downsizing, hoping for a deal to be reached. Without immediate support, many small businesses will be forced to scale back operations.
CFIB is calling on government to release the billions that have been collected by Canada’s retaliatory tariffs, as promised by the Prime Minister during the election campaign. We’ve suggested several options to do so, including setting the small business tax rate temporarily at zero or a tariff rebate designed on earlier models.
The worst outcome for Canada is a bad deal. But the second worst outcome is ongoing uncertainty over Canada-US trade. This is what small business owners now face.
- Dan Kelly, President, CFIB
For media enquiries or interviews, please contact:
Dariya Baiguzhiyeva, CFIB
647-464-2814
public.affairs@cfib.ca
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 100,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
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