About a quarter of the businesses surveyed have not yet felt any impacts, while 12% remain uncertain about the long-term consequences of the trade dispute. Simon Gaudreault, CFIB’s chief economist and vice-president of research, highlights the growing worry and exhaustion among small business owners due to the unpredictable nature of tariff threats and constantly changing developments.
Gaudreault emphasizes that this uncertainty is detrimental to the economy, investment, and long-term business planning. In response, the CFIB is urging the federal government to take immediate action to support struggling businesses, with specific recommendations including scrapping the planned 19% carbon tax increase and ensuring carbon tax rebates remain tax-free.
Corinne Pohlmann, CFIB’s executive vice-president of advocacy, stresses the urgency of the situation, noting that businesses cannot afford to wait until Parliament reconvenes on March 24 for clarity and assurance. She calls on Ottawa to provide immediate support and guidance to small businesses during these turbulent times.
While the CFIB acknowledges that some government measures, such as the expansion of the EI Work-Sharing Program, could help businesses avoid layoffs, they express concerns about other support measures. The organization argues that small businesses need direct financial relief rather than more loans.
The CFIB also suggests that the government could assist businesses with high shipping costs when seeking new export markets or suppliers outside the U.S. This survey underscores the widespread impact of the U.S.-Canada trade dispute on small and mid-sized businesses across various sectors, highlighting the need for swift government action to mitigate the negative effects and provide support to affected businesses.
The CFIB also highlighted the importance of addressing high shipping costs for businesses seeking new export markets or suppliers outside the U.S. The organization suggests that government assistance in this area could help businesses diversify their operations and reduce reliance on U.S. trade, mitigating the risks associated with the ongoing tensions.
Conclusion
The ongoing U.S.-Canada trade dispute continues to weigh heavily on small and mid-sized businesses across Canada, with 62% reporting negative impacts, particularly in manufacturing, wholesale, and transportation sectors. The CFIB’s survey highlights the growing uncertainty and exhaustion among business owners, emphasizing the need for immediate government action to provide support and clarity.
The CFIB has outlined several key recommendations, including direct financial relief, scrapping the planned carbon tax increase, and addressing high shipping costs for businesses seeking new markets. These measures are critical to helping businesses navigate the challenges posed by the trade tensions and ensuring long-term economic stability.
As the situation remains unresolved, the CFIB urges the federal government to act swiftly to address the concerns of small businesses, which are vital to Canada’s economic recovery and growth.
Frequently Asked Questions
Which sectors are most affected by the U.S.-Canada trade dispute?
Manufacturing, wholesale, and transportation sectors are the hardest hit, according to the CFIB survey.
How are small businesses being impacted by the trade tensions?
62% of small businesses are experiencing negative effects, including increased costs, reduced demand, and uncertainty about the future.
What recommendations has the CFIB made to support small businesses?
The CFIB recommends scrapping the planned carbon tax increase, ensuring carbon tax rebates remain tax-free, and providing direct financial relief to affected businesses.
How can the government assist businesses with high shipping costs?
The CFIB suggests that the government could provide assistance to businesses seeking new export markets or suppliers outside the U.S. to help reduce shipping costs and diversify operations.
What can small businesses do to address the challenges posed by the trade dispute?
Businesses should explore new export markets, seek financial relief options, and advocate for government support through organizations like the CFIB.
