Two-thirds of Canadian small businesses to increase prices if U.S. imposes 25% tariffs
A new CFIB survey also found 82% of businesses would be impacted by tariffs in some way
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The Canadian Federation of Independent Business is sounding the alarm regarding incoming U.S. president Donald Trump’s threat of a potential 25% U.S. tariff on Canadian products.
A new CFIB survey found such a move would lead 65% of small businesses to increase prices for consumers to offset tariff impacts.
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And 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,” CFIB Executive Vice-President of Advocacy Corinne Pohlmann said in a statement.
“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 82% of businesses would be impacted by tariffs in some way with 51% of small businesses directly involved in either importing from or exporting to the U.S.
The CFIB sent a letter to all premiers earlier this week expressing concerns over the tariff threat, with 62% of small businesses agreeing Canadian governments must reduce the tax burden, with an equal percentage supporting the strengthening of border security measures to address U.S. concerns.
They also want governments to take bold action on interprovincial trade.
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“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,” Pohlmann said. “Now is the time for governments to step up and support Canada’s small businesses so they can be more productive and competitive in the face of tariff threats.”
The CFIB’S Your Voice survey was conducted from Dec. 5 to 29, 2024, with 1,898 CFIB members and for comparison purposes, a probability sample with the same number of respondents would have a margin of error of at most +/- 2.25%, 19 times out of 20.
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