CFIB warns small businesses may raise prices as US tariff threats loom over Canadian goods
The Canadian Federation of Independent Business (CFIB) has raised concerns about the effects of a possible 25 percent US tariff on Canadian products.
According to CFIB data, 65 percent of small businesses anticipate raising prices for consumers to offset the tariff's impact, while 69 percent expect higher operational costs.
Chorine Pohlmann, CFIB’s executive vice-president of Advocacy, stated, “A trade war would be disastrous for both Canadian small businesses and consumers.”
She added that governments must address tariff challenges with the US while ensuring Canadian businesses remain competitive domestically.
Pohlmann called for reduced red tape, the elimination of internal trade barriers, and tax relief for small businesses as part of the solution.
The report highlights that 82 percent of small businesses would be affected by tariffs in some capacity. With the US being Canada’s largest trading partner, 51 percent of Canadian small businesses are directly involved in importing from or exporting to the US.
Many others rely on suppliers or customers engaged in US trade. Businesses have expressed concerns over potential inventory shortages, product availability issues, and the need to explore alternative markets and suppliers if tariffs are imposed.
CFIB recently sent a letter to Canada’s premiers outlining its recommendations to address the tariff threat. These include reducing tax burdens, addressing interprovincial trade barriers, and bolstering border security measures to address US concerns.
A strong majority (62 percent) of business owners agree on the need for tax relief and support increased border security.
Pohlmann also criticized interprovincial trade barriers, stating, “It’s ridiculous that it’s still easier for Canadian small firms to do business overseas or across the border than within their own country.”
She urged governments to take action, emphasizing the need to support Canadian small businesses to enhance their productivity and competitiveness amidst tariff threats.
