TORONTO, Jan. 15, 2025 /CNW/ - 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 (FIB).
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 Chorine 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.
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.
"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. 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," Pohlmann concluded.
Methodology
Final results for the Your Voice – December 2024 survey, conducted from Dec.5-29, 2024, number of respondents = 1,898 CFIB members. 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.
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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