The Canadian Federation of Independent Business says 18% of small and medium-sized businesses face cancelled or delayed orders amid Canada-U.S. trade uncertainty.
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That number rises to 34% among exporters, the CFIB says.
“The uncertainty around tariffs is almost as damaging as tariffs themselves,” Simon Gaudreault, CFIB’s chief economist and vice-president of research, said in a statement.
“It reverberates among business owners right now and businesses are adjusting operations on the fly as a result. While we may have a few weeks of reprieve, there is still concern about the long-term impact of tariffs on small businesses.”
The new CFIB new survey also found 54% of businesses don’t feel prepared for the impacts of U.S.-Canada tariffs, 24% are looking to delay expansion plans, and 20% are looking to reduce workforce/hours.
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The survey found 81% of small firms want Parliament recalled to deal with the tariff threat, which the CFIB supports.
In fact, the CFIB wants Parliament to stop the April 1 carbon tax increase, pass legislation to make sure carbon tax rebates for small businesses are tax free, pass proposed legislation to increase the lifetime capital gains exemption threshold to $1.25 million, and ensure the Canadian Entrepreneurs’ Incentive stays in place.
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“Some firms may change their business models and find new markets, but it’ll take some time,” Gaudreault said in a statement.
“Many exporters though are telling us it will be a major struggle to pivot, and they’ll have to decide whether to lay off staff, remain in Canada or explore other markets. In some sectors, like retail, many businesses are indicating they’ll be forced to pass on increased costs to customers. Others, like in the agri-business sector, report they will be forced to eat most of the increased costs.”
The Flash Survey: Impact of U.S.-Canada tariff situation on businesses was conducted Feb. 6-11 with 2,236 CFIB members with a margin of error of at most +/-2.1%, 19 times out of 20.
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