CFIB urges Parliament to address tariffs and tax policies as most the of businesses report negative impacts
A majority of small- and mid-sized businesses in Canada feel the strain of the ongoing US-Canada trade war.
According to the Canadian Federation of Independent Business (CFIB)’s upcoming Monthly Business Barometer, 62 percent report negative impacts.
The most affected industries include manufacturing, wholesale, and transportation.
While about a quarter of businesses say they have yet to see an impact, 12 percent remain uncertain about the consequences.
CFIB is urging the federal government to take immediate action to support struggling businesses.
The organization is calling for Parliament to be recalled to halt the planned 19 percent carbon tax increase and pass legislation ensuring carbon tax rebates remain tax-free.
It is also pushing for an increase in the lifetime capital gains exemption threshold to $1.25m and the protection of the Canadian Entrepreneurs’ Incentive.
CFIB further emphasizes the need for Ottawa to return any funds collected from Canadian retaliatory tariffs to affected businesses without delay.
Simon Gaudreault, CFIB’s chief economist and vice-president of research, said business owners are facing growing uncertainty.
“To say that small businesses are feeling worried is an understatement. No one likes to be strung along, small business least of all. The everchanging news developments and the constant on-again, off-again tariff threats are exhausting and just very bad for the economy, investment and long-term business planning,” he said.
Corinne Pohlmann, CFIB’s executive vice-president of advocacy, also warned that businesses cannot afford to wait for Parliament to reconvene on March 24.
“We cannot wait until Parliament is back on March 24 to sort out the current mess and allow the ongoing uncertainty to drag on for any longer. Ottawa owes it to small businesses to provide some clarity and assurance in these turbulent times,” she said.
Pohlmann acknowledged that the federal expansion of the EI Work-Sharing Program, announced last week, could help businesses avoid layoffs.
However, she expressed concerns about other government measures, arguing that small businesses need direct financial relief rather than more loans.
She also suggested that the government could assist businesses with high shipping costs when seeking new export markets or suppliers outside the US.
