Toronto, August 12, 2026 – Two in five surveyed Canadian exporters to the U.S. report selling products affected by the proposed 50% U.S. tariffs on some CUSMA compliant goods. Among those affected, over three-quarters (77%) expect their revenues to drop if new tariffs take effect, finds new research by the Canadian Federation of Independent Business (CFIB). More than one in three (35%) expect revenues to fall by at least 50%.
“The small studio in Ontario shipping paintings to a gallery in New York, or a sawmill in BC shipping panels to a builder in Seattle is being walloped by the 50% tax threat. If the tariffs come into effect next week, they will cause massive dislocation for small businesses that rely on U.S. clients and American buyers that rely on Canadian suppliers,” said Dan Kelly, CFIB president. “Most of these businesses have been operating under the long-standing assumption that CUSMA-compliant goods would remain tariff free. The prospect of losing sales, slashing prices, or having to pivot to new markets altogether, is generating a lot of small exporter anxiety in the lead-up to August 19."
Overall, more than nine in 10 exporters to the U.S. are concerned about the proposed 50% U.S. tariffs, with 32% reporting being extremely concerned. Of the 40% small firms who report their products will be affected, the largest groups include those selling:
• Machinery and equipment
• Wood, forestry and building products
• Plastics, polymers and packaging
• Agricultural, food and beverage products
• Arts, jewellery and creative products
“Few small firms can absorb a 50% tariff, and few can pass that cost on to customers while staying competitive,” Kelly said. “All eyes are on our negotiations with Washington as the stakes are very high for Canadian SMEs.”
For media enquiries or interviews, please contact:
Dariya Baiguzhiyeva, CFIB
647-464-2814
Public.affairs@cfib.ca
Methodology
Final results for the Survey on Proposed New U.S. Tariffs on Canadian Products. The online survey was conducted between July 28 - August 6, 2026, number of respondents = 1,833. For comparison purposes, a probability sample with the same number of respondents would have a margin of error of at most +/- 2.3%, 19 times out of 20.
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 103,000 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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