One year into the trade war, half of Canadian small businesses no longer feel the U.S. is a reliable trading partner

CFIB data shows federal tariff relief measures miss the mark

Toronto, March 4, 2026 – One year after the United States (U.S.) imposed tariffs on Canadian goods, half (52%) of Canadian small businesses no longer consider the U.S. a reliable trading partner, according to new data from the Canadian Federation of Independent Business (CFIB).

“Small businesses have faced massive uncertainty since the trade battle began last year,” said Dan Kelly, CFIB president. “Small business owners have been dealing with the whiplash of trying to keep up with sudden changes and threats, including many that don’t happen or are revised within hours. With CUSMA coming up for review in the months ahead, the stakes are even higher.”

Three-quarters (75%) of small businesses say the tariff fight has strained their relationships with U.S. partners or clients, up sharply from 49% in March 2025. The recent U.S. Supreme Court decision on tariff rates does not change the situation for most Canadian exports, it will bring some much-needed relief to the 27% of businesses hurt by tariffs on non-CUSMA compliant goods. Steel and aluminum tariffs imposed by both countries remain a major challenge for many small businesses, with 44% affected. Overall, more than two-thirds (68%) of Canadian small business owners continue to report being negatively affected by U.S. tariffs. 

Federal relief failing to support SMEs
CFIB research also found that few small businesses are accessing the federal Regional Tariff Response Initiative (RTRI). Fewer than 1% have applied and 77% are entirely unaware the program exists. Restrictive eligibility rules make the program inaccessible to many of the small businesses most affected by tariffs. For example, in British Columbia, businesses must employ at least 10 full-time workers to qualify, while in Quebec - where eligibility is now closed – applications were limited to manufacturing firms with annual revenues of $2 million or more.

CFIB recently sent a letter to Prime Minister Mark Carney, Finance Minister Champagne, and Canada's Regional Development Agencies (RDA), questioning the program’s design and effectiveness.

“We keep hearing the same things from small business owners: they’re too small to qualify, they didn’t know about the program, or that the required paperwork isn’t worth the time and resources,” said Corinne Pohlmann, CFIB executive vice-president of advocacy. “Many retailers and wholesalers were hit hard by counter-tariffs, but they still didn’t qualify. The program was poorly designed for the very small businesses it was supposed to help.”

CFIB is calling on Ottawa to:

•    Provide broad tax relief measures, such as a reduction in the small business tax rate from 9% to 6%. 
•    Implement a rebate program for tariff-impacted SMEs and ensure government rebates and refunds are not treated as taxable income.
•    Stay focused on maintaining the CUSMA agreement to restore stability, reduce trade uncertainty, and protect the cross‑border supply chains small businesses rely on.

“Small business owners are telling us they feel abandoned in dealing with tariff costs,” said Michelle Auger, CFIB director of trade and marketplace competitiveness. “With fewer people starting businesses, we can’t afford to overlook the ones we have. Ottawa needs to step up and find better ways to help.”

For media enquiries or interviews, please contact:
Dariya Baiguzhiyeva, CFIB
647-464-2814
public.affairs@cfib.ca 

Methodology
Final results for the Your Voice- February 2026 survey. The online survey was conducted between February 5-24, n= 1,379. For comparison purposes, a probability sample with the same number of respondents would have a margin of error of at most +/- 2.60%, 19 times out of 20.

Final results for the Your Voice – December survey. The online survey was conducted between December 4-31, 2025, n= 1,663. For comparison purposes, a probability sample with the same number of respondents would have a margin of error of at most +/- 2.40%, 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.