U.S. Tariffs Would Force Price Hikes and Drive Up the Cost of Doing Business Across Canada

• A 25% U.S. tariff on Canadian products, followed by potential Canadian retaliatory tariffs, would lead two-thirds (65%) of small businesses to increase prices for consumers to offset tariff impacts, warns the Canadian Federation of Independent Business (CFIB).
• Additionally, 69% of small business owners said tariffs would lead to higher costs of doing business.
• “A trade war would be disastrous for both Canadian small businesses and consumers. We need to ensure that as governments face the tariff threat with their American counterparts, they must also stay focused on keeping Canadian businesses competitive at home,” said Corinne Pohlmann, Executive Vice-President of Advocacy.
• “The solution is a no-brainer. This is an SOS call to all governments: reduce red tape, eliminate internal trade barriers, and ease the tax burden on small businesses.”
• New CFIB data found that a strong majority (82%) of businesses would be impacted by tariffs in some way. The U.S. is Canada's largest trading partner, with over half (51%) of small businesses directly involved in either importing from or exporting to the U.S., and this does not include thousands more that rely on suppliers or customers that are trading with the U.S.
• Overall, businesses expect to face limited inventory or product availability and a need to find alternative markets or suppliers if tariffs are imposed.
• Following the findings, CFIB sent a letter to all premiers earlier this week, expressing concerns over the tariff threat and providing recommendations. To address the impact of a potential tariff on Canadian goods, a strong majority of business owners (62%) agree that Canadian governments must reduce the tax burden, with an equal percentage supporting the strengthening of border security measures to address U.S. concerns. Governments must also take bold action on interprovincial trade.

(Source: Canadian Federation of Independent Business)