TORONTO, March 4, 2025 /CNW/ - The Trump administration's 25% across-the-board tariffs are a massive broadside to the Canadian economy and come at a time of great political and economic uncertainty.
Governments across Canada need to move into action mode. The majority of small business owners support retaliatory tariffs but recognize that they will hit an even broader swath of our economy than the U.S. tariffs themselves.
Many small businesses have already experienced higher costs, cancelled contracts/orders, and lower demand due to the ongoing threats. Now that they've been imposed, we expect to see these challenges rapidly escalate.
Sadly, this is not the end of it. We may see additional tariffs on steel and aluminum on March 12 and on another round of products on April 2.
Last week, Nova Scotia Premier Tim Houston followed through on a long-standing CFIB recommendation to break down internal trade barriers by mutually recognizing the rules of other provinces. Ontario Premier Doug Ford signalled he would do the same. Other provinces and territories need to step up now and match these actions to allow for true free trade within Canada. There is no time to waste.
The federal government should recall Parliament immediately to ensure that Canadian businesses have the support they need and that every dollar Canada collects in tariffs is returned to affected businesses as quickly as possible. The federal government can also send a clear message that Canada is open for business and investment by providing carbon tax clarity and stopping the April 1 increase, passing legislation to make sure carbon tax rebates are tax free and passing proposed legislation to increase the lifetime capital gains exemption threshold to $1.25M and putting the promised Canadian Entrepreneurs' Incentive stays in place. Political and policy uncertainty is the last thing the country needs at this moment.
As we mark five years since the start of the pandemic, Canadian businesses have faced two massive economic threats – the pandemic and an emerging trade war with our largest economic partner. All of us need to come together and do all we can to support local, independent Canadian businesses.
- Dan Kelly, President, CFIB
For more information on the impact of tariffs on small businesses, visit cfib.ca/tariffs.
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 100,000 members across every industry and region. CFIB is dedicated to increasing business owners' chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
SOURCE Canadian Federation of Independent Business
For media enquiries or interviews, please contact: Dariya Baiguzhiyeva, CFIB, 647-464-2814, [email protected]
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