Four in five small businesses report being impacted by the Canada-U.S. trade war, says CFIB data

A new report from the Canadian Federation of Independent Business (CFIB) shows that four in five small businesses report being impacted by the Canada-U.S. trade war – signaling widespread business disruption across the country.

Business owners reported that they are particularly concerned about rising costs, a weaker Canadian dollar, lower demand and price difficulties.

Looking to the future, many are worried about rising operational costs and cash flow issues as the economic uncertainty continues.

“Businesses need more certainty, it’s simple as that,” Simon Gaudreault, CFIB’s chief economist said in a statement.”

“As one business owner told us, the unpredictability of the current situation is making the pandemic look like a walk in the park. As we gear up for April 2 reciprocal tariffs, no one knows where the U.S.-Canada trade war is heading in the long term. For some businesses, making drastic changes is not feasible, but others are taking actions to offset the current impacts.”

As a result of the uncertainty, many businesses are shifting their focus to Canadian and other non-U.S. markets.

CFIB’s survey data says 47 per cent of small business owners do not consider the U.S. a reliable trading partner, and thirty-two per cent have already shifted to Canadian-based suppliers and markets.

Despite making moves away from American markets, optimism is at an all time low – with only 3 in 10 businesses reporting they feel confident their actions will help offset the impacts of the trade war.

READ MORE: Small businesses prefer ‘minor’ adjustments over layoffs to deal with tariffs: poll