Group calls for tariff relief program for small businesses

HR professionals and employers at exposed small firms should begin workforce contingency planning immediately, and one group is calling for more support from the federal government.

Nearly 1 in 5 (18%) small exporters and 11% of small importers hit by the Canada-U.S. tariff war say they would stop being financially viable if the dispute lasts three months or more, according to a new survey from the Canadian Federation of Independent Business (CFIB).

Currently, 46% of small exporters and 49% of small importers have products directly hit by the latest tariffs and Canadian counter-tariffs. Manufacturing, wholesale, retail and construction are among the hardest-hit sectors, the CFIB said.

We cannot allow small business owners to become cannon fodder in the trade war," says Dan Kelly, CFIB president. "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." Kelly said nine in ten small firms believe counter-tariff revenue should support businesses hit hardest.

CFIB's proposed measures

The CFIB is calling on Ottawa to create a Small Business Tariff Relief (SBTR) program, offering up to $70,000 CAD to exporters and importers who can show evidence of tariff payments or absorbed price increases.

The group also wants to government to create a n SME Desk for Tariff Remissions, which is meant to speed up decisions to lift Canadian counter-tariffs where industries face major harm or lack alternatives to U.S. products, the CFIB said. The organization is also seeking broad-based tax relief for all small firms, not only those directly hit by tariffs.

That relief would include cutting the Small Business Corporate Tax Rate from 9% to 6%, retroactive to Jan. 1, 2026, and raising the Small Business Deduction threshold from $500,000 to $700,000, with future indexation.

"Government support programs to date are not set up to deal with tens of thousands of small businesses," Kelly says, calling for "a simple direct support program."

Employer pressures mount

Jasmin Guénette, CFIB vice-president of national affairs, says small businesses face pressure "from multiple directions," citing weak economic growth, sluggish consumer demand and high operating costs on top of new tariffs.

Guénette says owners are being asked to "put their entire livelihoods on the line so that Canada can push back," and urged government to "move with urgency" on relief while negotiating a longer-term trade deal.

The survey, part of the CFIB's Impact of the U.S.-Canada Trade War 2026 study, has been active since Aug. 28 and drew 1,545 respondents.

Already, more Canadian businesses are closing than opening, with exits outpacing entries for six consecutive quarters – a reversal that threatens job creation, wage growth and career mobility across Canada, one group has warned.

Federal government support available to small businesses

Ottawa has previously announced some supports for businesses affected by the US tariffs. This table reflects the federal package announced by the Department of Finance on August 25, 2026, which builds on nearly $25 billion in supports the government has implemented over the past 18 months.