Impending U.S. tariffs worrying small businesses even more than past threats: CFIB

The head of the Canadian Federation of Independent Business, Dan Kelly, reported Tuesday that small businesses were more concerned about impending U.S. tariffs than previous threats. A Canadian manufacturer, who is heavily reliant on U.S. business, expressed his inability to continue if the tariffs of 50% on certain Canadian exports, such as booze, cement, honey, and hockey sticks, were implemented starting Wednesday.

According to Kelly, "those are heartbreaking stories to hear from small business owners." The CFIB president recounted how many business owners are anxious, hoping negotiators could broker a deal before the tariffs come into effect. If the negotiations fail, it could lead to the loss of 102,000 Canadian jobs and 214,000 American jobs, as stated in a report by Oxford Economics.

Business owners were divided into two groups: those who might be indirectly affected by tariffs since the duties only impact a portion of their products, and those whose businesses rely heavily on U.S. trade. CFIB members were uncertain whether U.S. President Donald Trump would back down from applying the tariffs, as he has done multiple times this year.

Even if the crisis were to be averted, many businesses were still in a state of panic due to the potential impact of the tariffs.