Canadian Small Businesses Lose Faith in U.S. as Trade War Drags On
Event summary
- 52% of Canadian small businesses no longer consider the U.S. a reliable trading partner, up from 49% in March 2025.
- 75% report strained relationships with U.S. partners or clients due to tariffs.
- Only 1% of small businesses have applied for federal tariff relief, with 77% unaware of the program's existence.
- Steel and aluminum tariffs continue to affect 44% of Canadian small businesses.
The big picture
The prolonged U.S.-Canada trade war has significantly eroded small business confidence, with half now viewing the U.S. as an unreliable partner. The federal government's tariff relief measures have largely failed to reach affected businesses, highlighting a critical gap in support for SMEs during this period of heightened trade uncertainty. As CUSMA comes up for review, the stability of cross-border supply chains and the broader economic impact on Canadian small businesses remain key concerns.
What we're watching
- Policy Response
- Whether Ottawa will implement CFIB's proposed tax relief measures and rebate programs for tariff-impacted SMEs.
- Trade Agreement Stability
- The impact of the upcoming CUSMA review on cross-border supply chains and small business confidence.
- Business Sentiment
- How long-term erosion of trust in U.S. trade reliability will affect Canadian SMEs' long-term strategies.