Half of Canada's small exporters and importers hit by new U.S. tariffs and Canadian counter-tariffs - many at risk if trade war lasts more than 3 months

TORONTO, Sept. 3, 2026 /CNW/ -- One in five (18%) small exporters and 11% of importers affected by the Canada-U.S. trade war say they would stop being financially viable if the trade war lasts three months or more, according to a new survey from the Canadian Federation of Independent Business (CFIB).

Nearly half of small exporters (46%) and a similar share of small importers (49%) have products directly hit by the latest round of tariffs and counter-tariffs. Manufacturing, wholesale, retail and construction are among the most affected sectors.

"We cannot allow small business owners to become cannon fodder in the trade war. 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," said Dan Kelly, CFIB president. "While a majority small firms are generally supportive of the decision to walk away from trade talks and impose counter-tariffs, the burden falls especially heavily on some segments of Canada's independent business community. Nine in ten small firms believe counter-tariff revenue should be used to support the businesses hit hard by the trade war." 

"Government support programs to date are not set up to deal with tens of thousands of small businesses, particularly as counter-tariffs begin to hit next week," Kelly added. "We need a simple direct support program to help businesses on the U.S. and Canadian tariff lists in addition to broad-based tax relief to help all small firms that will be hurt by the trade war."

CFIB is proposing three important measures:

• A dedicated Small Business Tariff Relief (SBTR) program, where impacted exporters and importers who can provide direct evidence they paid the tariffs directly, or adjusted prices to absorb part or all of the tariff, would be eligible to receive initial tariff relief up to $70,000 CAD.
• An SME Desk for Tariff Remissions to speed up decisions on eliminating Canadian retaliatory tariffs if there are major negative impacts on the industry or if alternatives to the U.S. product are not readily available.
• Immediate tax relief for all small businesses in the form of a Small Business Corporate Tax Rate cut from 9% to 6%, retroactive to January 1, 2026, and an increase to the Small Business Deduction threshold from $500,000 to $700,000 with future indexation to inflation.

"Small businesses are being squeezed from multiple directions, and both the new tariffs and counter-tariffs will add a significant burden at a time when we're already grappling with weak economic growth, sluggish consumer demand and some of the highest operating costs we have ever seen," said Jasmin Guénette, CFIB vice-president of national affairs. "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 as they continue to work towards a stable, long-lasting trade deal."

Methodology

Preliminary results for the Impact of the U.S.-Canada Trade War 2026 survey. The survey is active since August 28, number of respondents = 1,545. For comparison purposes, a probability sample with the same number of respondents would have a margin of error of +/-2.49%, 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 103,000 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 (Toronto)

For media enquiries or interviews, please contact: Marty Thompson, CFIB, 647-464-2814, [email protected]