CFIB statement on President Trump's 25% tariffs

TORONTO, Feb. 1, 2025 /CNW/ - The 25% tariffs on Canadian products, announced by President Trump, are deeply disappointing and will hit small businesses hard on both sides of the border. It shouldn't have come to this.

Trade is not just a big business issue - over half (51%) of Canada's small business are involved in importing or exporting directly with the U.S. Should Canada respond with tariffs of our own, small firms ? already operating on razor-thin margins ? will have no choice but to raise prices. This will lead to even weaker consumer demand. While we recognize our government will need to respond, we urge government ensure any Canadian tariffs avoid broad impacts on Canadian SMEs.

As President Trump has plans to cut red tape and reduce taxes, Canadian governments will also need to make sure our small businesses are well-equipped to stay competitive with their American and global counterparts. Now is the time to reduce taxes and red tape and implement a mutual recognition agreement to address internal trade barriers.

If US tariffs are in place for a longer period, governments should ensure any support programs do not repeat the mistakes of pandemic support programs like CERB. Any business supports should focus on the needs of small businesses ? not just large exporters. We need to remember that many small businesses remain deeply in debt from the pandemic restrictions and the current political and economic uncertainty makes this period even more challenging.

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

For more information on tariffs and their impact on small businesses, visit cfib.ca/tariffs.

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