CFIB says lifting U.S. tariffs a lifeline for struggling small businesses

The Canadian Federation of Independent Business (CFIB) says small businesses will find relief after the big announcement from Prime Minister Mark Carney Friday.

Carney says Canada is lifting retaliatory tariffs on American goods under the Canada-United States-Mexico agreement, otherwise known as CUSMA.

However, others are not so welcoming of the move.

“We felt it was a positive first step. About 20 per cent are telling us that if the costs continue at the rate that they are today, they don’t think they could survive another six months,” said Corinne Pohlmann, executive vice president, advocacy for CFIB.

The CFIB says retaliatory tariffs on U.S. goods hurts small businesses’ wallets – so the move to drop some is welcome.

“For many of them, it was adding a 25 per cent cost to those goods that they were trying to bring in. For some of them, there was no other alternative. It really was the only option was the United States. So dropping this now really allows them to potentially be able to stop absorbing the costs, or even if they were passing it along to their customers, hopefully start to reduce the prices for the customers as well,” said Pohlmann.

During the announcement, Carney said Canada has the best deal with the U.S.

“We have the best deal of anyone in the world right now, we have the lowest tariff rate on average, little over five and a half per cent versus that 16 per cent average for the world, and in many cases, much higher,” said Carney.

WATCH MORE: Canada removing many retaliatory tariffs on U.S. goods

U.S. President Donald Trump welcomed the change.

“We are working on something. We want to be very good to Canada. I like Carney a lot. I think he’s a good person and we had a very good talk yesterday. So I think it’ll be good,” said Trump.

And Trade Minister Dominic Leblanc says the move puts Ottawa in a stronger position to negotiate with Washington – adding talks with U.S. officials continue in hopes of a deal.

Some are not so supportive.

The president and CEO of the Canadian Steel Producers Association says the announcement was a “disappointment” for Canada’s steel producers, saying reciprocal tariffs protect Canada’s industries and workers during the trade war.

Though the move removes the tariffs on goods under CUSMA, Canada will keep the tariffs on steel, aluminum and autos as it works with the U.S. to resolve issues.

Conservative leader Pierre Poilievre also criticized the announcement, saying Carney is showing weakness.

“He has backed down while claiming that he would stand up. And he has gotten absolutely nothing in return. His elbows have mysteriously gone missing,” said Poilievre.

Ontario Premier Doug Ford also released a statement in which he said he stressed to Carney the need for an agreement with the U.S. that provides relief to the province’s tariff-impacted sectors.

Ford added that if the federal government can’t do that, they need to hit back hard against U.S. tariffs and provide more support for workers and businesses.

WATCH MORE: Canada set to lift retaliatory tariffs on some U.S. goods. Will it ease trade talks?