CFIB warned Ottawa that small exporters felt abandoned as trade tensions dragged on
One year into Washington’s tariff offensive, a slim majority of Canadian small businesses no longer view the United States as a reliable partner – a shift that rippled from factory floors into credit and housing forecasts.
New survey data from the Canadian Federation of Independent Business (CFIB) showed that 52% of small firms no longer considered the US a dependable trading partner, while 68% reported being negatively affected by American tariffs.
Three quarters said the tariff fight strained relationships with US partners or clients, up sharply from 49% in March 2025.
“Small businesses have faced massive uncertainty since the trade battle began last year,” said Dan Kelly, CFIB president.
“Small business owners have been dealing with the whiplash of trying to keep up with sudden changes and threats, including many that don't happen or are revised within hours. With CUSMA [Canada–US–Mexico Agreement] coming up for review in the months ahead, the stakes are even higher.”
David Coletto of Abacus Data noted a surprising gap between public sentiment and industry fears, as many Canadians prioritize resilience and broader economic results over the fate of the CUSMA agreement itself.https://t.co/lpzxZcg8RO
— Canadian Mortgage Professional Magazine (@CMPmagazine) March 4, 2026
Relief program left smallest firms on the sidelines
Behind the headline numbers, CFIB’s research pointed to a federal support system that many entrepreneurs either could not reach or did not know existed.
Fewer than 1% of firms applied to the Regional Tariff Response Initiative, and 77% were unaware of it.
In provinces such as British Columbia and Quebec, minimum staff and revenue thresholds effectively ruled out micro‑firms despite their exposure to cross‑border costs.
“We keep hearing the same things from small business owners: they're too small to qualify, they didn't know about the program, or that the required paperwork isn't worth the time and resources,” said Corinne Pohlmann, CFIB executive vice‑president of advocacy.
“Many retailers and wholesalers were hit hard by counter‑tariffs, but they still didn't qualify. The program was poorly designed for the very small businesses it was supposed to help.”
Since most can’t access Ottawa’s relief program, they’re stuck with higher costs for key materials like steel and aluminum. Those higher costs can make building and renovating homes more expensive, which can limit new supply and keep housing prices elevated.
Steel and aluminum tariffs remained a particular pressure point, with 44% of businesses affected and 27% hurt by levies on non‑CUSMA compliant goods, even after a US Supreme Court ruling on tariff powers brought partial relief.
Overall, CFIB’s broader “Your Voice” polling found most small firms reported higher expenses, weaker profits and supply chain disruptions linked to the trade war.
CFIB urged Ottawa to offer broader tax relief, including cutting the small business tax rate from 9% to 6%, designing a non‑taxable rebate program for tariff‑hit SMEs, and keeping CUSMA intact to restore stability and protect cross‑border supply chains.
“Small business owners are telling us they feel abandoned in dealing with tariff costs,” said Michelle Auger, CFIB director of trade and marketplace competitiveness.
“With fewer people starting businesses, we can't afford to overlook the ones we have. Ottawa needs to step up and find better ways to help.”
Why mortgage professionals are watching
Tariffs have already been flagged as one of the biggest question marks hanging over Canada’s 2026 housing outlook, with economists warning that prolonged trade frictions could sap business investment, weaken job growth and delay development projects.
Homebuilders are grappling with higher lumber and input costs as US duties climb, and bank analysts trimmed earnings forecasts as trade‑related uncertainty weighs on loan growth.
While most prospective homebuyers appear determined to press ahead despite tariff headlines, survey data suggests confidence is fragile, and trade tensions are increasingly cited alongside rates and affordability as key risks.
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