Small businesses looking to Council of the Federation for support as tariff impacts continue to weigh down economy Français
"Between tariff uncertainty, rising costs and weak consumer demand, it seems small businesses just can't catch a break. Canada is losing entrepreneurs, and we can't improve our sluggish productivity if we don't make it easier to start, run and grow a business," said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB. "Canada's premiers have the power to truly create one Canadian economy. We hope they use this meeting as an opportunity to ensure small business policies are a key part of their discussions."
Amid ongoing trade challenges, four in ten (42%) businesses have been raising prices. Around a third are shifting to domestic markets (37%) or absorbing some or all the additional tariff costs (31%), and a quarter are exploring non-U.S. markets (25%) or delaying expansion plans (29%).
To provide small businesses with greater opportunities to grow and compete, CFIB recommends governments:
Lower the small business tax rate with a plan to get it to 0% and raise the threshold to $700,000.
Ensure small- to medium-sized firms are included in the planning and execution of major infrastructure projects.
Quickly return the federally collected tariff revenues to SMEs and clarify the use of the provincial tariff contingency funds.
Keep the momentum going on internal trade and adopt a unilateral direct-to-consumer alcohol shipment approach, as Manitoba has done.
"Businesses need targeted policies that would boost our economy and increase Canada's global competitiveness. There has never been a better time to build a more productive Canada than now," said SeoRhin Yoo, senior policy analyst of interprovincial affairs. "We hope to see faster action on key small business priorities following the COF meeting."
Methodology
Preliminary results for the Your Voice July survey. The online survey is active since July 10, number of respondents = 1,330. For comparison purposes, a probability sample with the same number of respondents would have a margin of error of at most +/- 2.69%, 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.
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