Trump tariffs could see Canadian exporters lose half their revenue: survey
Around two in five Canadian exporters said they currently export a product to the U.S. that would fall under the scope of the new incoming tariffs, a new survey said on Wednesday.
U.S. President Donald Trump's new round of tariffs, set to take effect in less than a week, could devastate Canadian exporters, according to a survey of small Canadian businesses. Approximately 40% of Canadian exporters sell products to the U.S. under the Canada-U.S.-Mexico Trade Agreement (CUSMA) and are at risk of losing half or more of their revenues if the tariffs are implemented, the Canadian Federation of Independent Business (CFIB) reported on Wednesday.
Of these exporters, 77% anticipate losing revenue, while 35% expect to lose at least half of their revenues. CFIB president Dan Kelly noted that many businesses have been operating under the assumption that CUSMA-compliant goods would remain tariff-free, but the prospect of losing sales, reducing prices, or shifting to new markets has caused significant anxiety among small exporters.
Merchant Growth, a Canadian business financing solutions firm, found that more than six in 10 small businesses have some reliance on the U.S. market, with 13% stating their relationship with the U.S. is "core" to their business. Nearly half (55%) of the surveyed businesses have reduced spending, and a quarter (25%) have delayed hiring, while another quarter increased prices for consumers.
Canadian officials are working to secure a deal with the U.S. before the tariffs take effect, with Trade Minister Dominic LeBlanc and Chief Trade Negotiator Janice Charette meeting U.S. Trade Representative Jamieson Greer in Washington on Tuesday to discuss the matter.
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