Canadian businesses face tariff crunch as trade war bites deep
“We cannot allow small business owners to become cannon fodder in the trade war,” said Dan Kelly, president of CFIB. “If we’re going to retaliate, then we need to make sure government supports protect the small businesses being put on the front lines of the trade war.”
Manufacturing, wholesale, retail and construction are among the most affected sectors; industries that form a significant portion of the client base for financial advisors and wealth managers working with business-owner clients across Canada. As Wealth Professional has previously reported on the strain facing small businesses throughout the trade war, the situation continues to deteriorate.
CFIB vice-president of national affairs Jasmin Guénette warned that businesses face compounding pressures: “We’re talking about people who are being asked to put their entire livelihoods on the line so that Canada can push back. The government needs to move with urgency and get relief measures in place.”
The organization is proposing a dedicated Small Business Tariff Relief program offering initial support of up to $70,000 CAD for eligible exporters and importers.
CFIB is also calling for the small business corporate tax rate to be cut from 9% to 6%, retroactive to January 1, 2026, and for the Small Business Deduction threshold to rise from $500,000 to $700,000, measures that, if enacted, would meaningfully improve after-tax cash flows for owner-operator clients.
