Small Canadian exporters are covering cost of U.S. tariffs: CFIB urges government to release retaliatory tariff revenue if trade deal not reached by Friday

TORONTO, July 29, 2025 /CNW/ - Most small businesses are absorbing some or all of the costs associated with U.S. tariffs, according to new data by the Canadian Federation of Independent Business (CFIB). With a deadline for a new trade deal looming on August 1, CFIB is calling on Ottawa to release Canada's retaliatory tariff revenues to support small businesses.

On imports from the U.S., nearly seven in 10 small businesses paid the full Canadian tariff, with the median cost of $9,000. On exports, 63% covered costs directly or shared them with their U.S. customers, paying a median of $25,000. "It is clear that most small exporters have had to eat much of the cost of U.S. tariffs in order to keep their American customers," said Dan Kelly, CFIB president.

Ottawa has collected billions in additional tariff revenue on U.S. imports compared to last year. "If no deal is reached by Friday, Canada must immediately return the revenue collected from our counter tariffs to small businesses to help them weather the ongoing harm and massive economic uncertainty," Kelly said. "Many have been holding out, delaying critical decisions hoping for enough certainty to plan for the future. Without an immediate deal, many are facing some terrible choices, including laying off key workers."

CFIB has sent a letter to the federal government, urging it to consider several options to providing financial relief to businesses. These include a rebate program for affected businesses, a temporary reduction in the small business tax rate from 9% to 0% or lowering Employment Insurance premiums for employers. CFIB's latest petition, which has 10,000 signatures, also calls on Ottawa to deal with unfinished business and lower the costs of doing business.

"So far, the federal government's announced support measures and tariff exemptions have fallen short of bringing desperately needed cost relief," said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB. "We also hope that the government will take a careful look at its counter-tariff plans when negotiations conclude. Although small businesses have been supportive of Canada's counter-tariffs while discussions are under way, ongoing tariffs would have permanent consequences on small businesses and the broader Canadian economy."

Methodology

Final results for the Your Voice July survey. The online survey was conducted online July 10-24, number of respondents = 2,090. For comparison purposes, a probability sample with the same number of respondents would have a margin of error of at most +/- 2.14%, 19 times out of 20.

About CFIB

The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 100,000 members across every industry and region. CFIB is dedicated to increasing business owners' chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.

SOURCE Canadian Federation of Independent Business