After the negotiations on an interim Canada-US trade deal broke down, we are now in the next chapter of the trade war, with significant new tariffs in both directions. And while independent businesses were already affected by the earlier rounds of tariffs, these new ones are very much focused on the things Canadian small firms sell or buy.
CFIB data shows that about 40% of our small exporting members sell goods that are now subject to a whopping 50% US tariff. And Canada’s retaliatory tariffs will likely affect an even larger portion of our membership.
Over the past week, I and our legislative team have been in contact with Industry Minister Melanie Joly, Finance Minister Francois-Phillippe Champagne, members of Prime Minister Mark Carney’s office, and opposition MPs, as well as provincial officials across the country. On top of this, we’ve conducted hundreds of media interviews, including many from outlets around the world, to make sure the small business perspective – your perspective – remains front and centre.
Our detailed member surveys tell us that CFIB members want a good and sustainable trade deal. Until we achieve that, it’s crucial that government supports meet small business needs, and governments focus on what they can control to create the best possible environment to start, run and grow a business.
In normal economic times, CFIB strongly opposes business subsidies. Our members have always believed that governments should allow businesses to keep more of their own retained earnings through lower taxes, rather than leaving it to governments to pick winners and losers. The only time we support business subsidies is when government decisions themselves bring harm to business. That includes events like pandemic lockdowns, and unfortunately, like the trade war we find ourselves in now.
The federal government has announced additional tariff support programs, mostly in the form of loans delivered by Regional Development Agencies. These programs have been spectacularly unhelpful to small businesses dealing with the earlier rounds of tariffs and we are pressing for major changes, including access for all affected small firms.
We also know this trade battle will affect all of us as it will cause more economic uncertainty and higher prices. That’s why in addition to improvements to the announced tariff support programs, we are calling for a reduction to the federal small business tax rate, from 9% to 6%, retroactive to January 1, 2026. You can add your voice to that call by signing our petition.
As we did during the pandemic, CFIB will be Canada’s leading source of information for small business owners, the leading advocate for change, and a strong voice with the public. Our website will house all of the latest information on tariff support programs, so please check back regularly.
Our Business Resources team is available to you by phone (1-833-568-2342), email and live chat to help with answers to any of your questions.
Even if you think you are not directly affected by tariffs, I urge you to participate in our regular surveys as they help us make the case for change with the federal and provincial governments. We will continue to ensure that your voices are heard at every level of government, and in the media.
Thank you, for everything you do for your employees, your community, and your country.
Dan Kelly
CFIB President
