TORONTO, Feb. 1, 2025 – President Trump’s announcement of 25% tariffs on Canadian goods is deeply concerning and will severely impact small businesses on both sides of the border. This outcome was avoidable.

Trade is vital for small businesses – over half (51%) of Canada’s small businesses engage in direct import/export with the U.S. Retaliatory Canadian tariffs would force already struggling small firms to increase prices, further dampening consumer demand. While a government response is necessary, we urge caution to minimize the impact on Canadian SMEs.

Given President Trump’s plans for deregulation and tax cuts, Canadian governments must ensure our small businesses can compete effectively. This is the ideal time for tax reductions, streamlined regulations, and a mutual recognition agreement to eliminate internal trade barriers.

Should the US tariffs persist, government support programs must avoid past mistakes, such as those seen with pandemic aid like CERB. Any aid should prioritize the needs of small businesses, not just large exporters. Many small businesses are heavily indebted from pandemic restrictions, and current economic uncertainty exacerbates their challenges.

– Dan Kelly, President, CFIB
– Corinne Pohlmann, Executive Vice-President, Advocacy, CFIB

For more information on tariffs and their impact on small businesses, visit

About CFIB

The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses, representing 100,000 members across all sectors and regions. CFIB is committed to boosting small business success through policy advocacy, expert advice and tools, and exclusive member savings. Learn more at .

SOURCE Canadian Federation of Independent Business