Nearly half of small businesses do not see the U.S. as a reliable partner: CFIB

TORONTO — Canadian tiny businesses are losing assurance successful the U.S. arsenic a reliable trading partner, and are shifting to suppliers successful home and different planetary markets successful the aftermath of President Donald Trump’s tariffs.

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A caller study by the Canadian Federation of Independent Business says 47 per cent of members it precocious surveyed bash not see Canada’s confederate neighbour to beryllium a reliable trading spouse anymore.

Nearly one-third of concern owners study having already shifted to suppliers and markets wrong Canada, portion 27 per cent accidental they mean to summation their home investments. Another 33 per cent program to trim their reliance connected the U.S. implicit the adjacent six months.

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“That’s evidently a massive, monolithic alteration connected the portion of Canada’s concern assemblage … that has been rather linked to the U.S., some arsenic an export marketplace and arsenic a root of truthful galore of Canada’s imports,” said CFIB president Dan Kelly successful an interview.

“It paints a beauteous stark representation of the authorities of Canada-U.S. relations close now.’

Trump’s broad 25 per cent tariffs connected imports from Canada, with a little 10 per cent complaint for vigor products, took effect March 4. Two days later, the president paused the levy’s exertion to goods and services compliant with the United States-Mexico-Canada Agreement until April 2.

The CFIB said that portion astir companies that export to the U.S. person CUSMA-compliant goods, 30 per cent said they are unsure astir their compliance and fractional privation authorities enactment successful handling the indispensable paperwork.

Trump besides signed a program to institute 25 per cent tariffs connected each alloy and aluminum entering the U.S., ending erstwhile exemptions for Canada. Those tariffs took effect March 12.

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A 3rd category, dubbed “reciprocal” tariffs, which would use to goods from countries that person tariffs connected U.S. goods, are slated to travel into unit April 2.

“As 1 concern proprietor told us, the unpredictability of the existent concern is making surviving the pandemic look similar a locomotion successful the park,” said CFIB main economist and vice-president of probe Simon Gaudreault successful a property release.

“As we cogwheel up for the April 2 reciprocal tariffs, nary 1 knows wherever the U.S.-Canada commercialized warfare is heading successful the agelong term. For immoderate businesses, making drastic changes is not feasible, but others are taking actions to offset the existent impacts.”

The concern radical said tiny businesses are promoting Canadian-made products, delaying oregon cancelling enlargement plans and exploring planetary alternatives.

But lone 3 successful 10 accidental they are assured their actions volition assistance offset the interaction of the commercialized war.

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While tiny firms are readying contingencies for each imaginable scenarios erstwhile the April 2 deadline arrives, Kelly said it’s been challenging for many.

“The U.S. is specified a monolithic marketplace for user products and concern products,” helium said.

“I’ve talked to tons of businesses who say, ‘The lone institution that supplies this portion is successful the U.S., similar determination isn’t different 1 that does the circumstantial happening that I use,’ and truthful they’re having to deliberation astir cardinal concern changes successful immoderate cases successful bid to marque these kinds of accommodations.”

This study by The Canadian Press was archetypal published March 26, 2025.

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