Latest news with #CFIB
Toronto Sun
11 hours ago
- Automotive
- Toronto Sun
New study details heavy toll of Trump tariffs on Ontario's auto sector
"Right now, businesses are just focused on keeping the doors open" A stockpile of Ford F150 Lightning EV models are shown at the Ford Essex Engine Plant in Windsor on Monday, May 5, 2025. Photo by Dan Janisse / Postmedia Network A study by the Canadian Federation of Independent Business (CFIB) reports the Canada-U.S. trade dispute has resulted in 49 per cent of businesses in Ontario's automotive sector postponing or cancelling new investments while delivering a double-digit decline in sales. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Since U.S. President Donald Trump's tariff campaign began in February, Ontario's small- and medium-size auto firms have scuttled potential investment worth $2.9 billion over the next year. 'Uncertainty, market volatility and increased costs are forcing auto business owners to make difficult decisions to keep their doors open,' said Joseph Falzata, the report's co-author and CFIB's policy analyst for Ontario. 'The desire to grow is there, but with such massive revenue losses, businesses are more focused on keeping their doors open than expanding their operations.' The impact of those lost investments will have a ripple effect across Ontario's economy. Falzata said June was the first month since March that those surveyed weren't going to lay off more people than they hired. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. June was a net-zero month for hiring with 15 per cent of firms saying they expected to lay off employees in the next three to four months, matching the percentage intending to hire. The remaining 70 per cent forecast no employment level changes. 'It's a huge impact,' Falzata said. 'Ontario needs big employers like Stellantis, Ford, GM . . . but those companies also need these smaller suppliers to make their products. Those businesses also support the existence of other non-automotive businesses in cities like Windsor.' The potential threat is also severe in London, where in 2023 more than 700 businesses export ed about $ 7.8 billion worth of goods to the United States, mostly in automotive and manufacturing but also in food and agriculture, Statistics Canada figures show. This advertisement has not loaded yet, but your article continues below. The survey was sent to 500 members of the CFIB and focused on the 187 businesses with fewer than 500 people that were operating in the automotive sector in Canada. It found that 65 per cent of those businesses were negatively impacted by the tariffs. The average loss of sales to date has been 13 per cent. 'Business confidence is at low levels right now in Canada,' Falzata said. 'The last few months it's an all-time low – lower than during the pandemic, the 2008 financial crisis and even 9/11.' Falzata added 34 per cent of exporters reported experiencing border delays since the tariff war started. The uncertainty has resulted in the triple threat of a pause in investment, a decline in demand and higher prices for imports. This advertisement has not loaded yet, but your article continues below. 'Fifty-five percent of (of all types of) businesses report there's insufficient demand for growth in Ontario,' said Falzata, who noted the paperwork involved in getting products certified as compliant with the Canada-United States-Mexico Agreement trade pact adds another layer of costs. 'Right now, businesses are just focused on keeping the doors open. They're trying to re-navigate their supply chains to Canadian suppliers or other countries than the U.S.,' Falzata said. 'It's expensive to do that. Businesses said they plan to pass on most if not all those additional costs to consumers.' Falzata said the CFIB feels government support and some changes to the small business income tax rate are required to help the sector navigate through this period. This advertisement has not loaded yet, but your article continues below. However, the $85 million in funding allocated to the Ontario Automotive Modernization Program (O-AMP) and the Ontario Vehicle Innovation Network (OVIN) along with the $50 million set aside for the Ontario Together Trade Fund (OTTF) are expected to be used by only one to two per cent of small auto business owners. Falzata said requirements of businesses to match government grants or invest up to $200,000 to be eligible for the programs is beyond the reach of most small businesses in the current climate. Being able to demonstrate a 30 per cent loss in revenue is another eligibility hurdle. 'If you've lost 30 per cent of your revenue, you're focused on fighting to keep the doors open and not likely to have $200,000 lying around,' Falzata said. This advertisement has not loaded yet, but your article continues below. 'Our membership would prefer to see the small business income tax reduced from 3.2 per cent, the highest rate in Canada, to two per cent. Perhaps reducing the revenue decrease to 10 per cent to be eligible would help.' Falzata said the CFIB also recommends raising the threshold for the lower small business tax rate from the first $500,000 earned to $700,000. 'While these programs were created with good intentions, the reality is they miss the mark for small business.' The organization also recommends the federal government speed up its distribution of tariff money collected on U.S. goods to lessen the effect of the damaging trade war. Dwaddell@ Read More World MMA Tennis Toronto & GTA Toronto Blue Jays
Yahoo
20 hours ago
- Business
- Yahoo
Dutch Village Road construction frustrates shop owner
Construction on the Halifax street is hurting some businesses. To help soften the blow, the Canadian Federation of Independent Business is calling for a construction mitigation fund. Giuliana Grillo has the story.
Cision Canada
2 days ago
- Business
- Cision Canada
Small businesses looking to Council of the Federation for support as tariff impacts continue to weigh down economy Français
TORONTO, July 18, 2025 /CNW/ - As Canada's premiers meet in Huntsville next week, the Canadian Federation of Independent Business (CFIB) has sent a letter to all provincial and territorial premiers, as well as Prime Minister Carney, urging them to ensure small business priorities are at the top of their agenda. "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
CBC
3 days ago
- Business
- CBC
Dutch Village Road construction frustrates shop owner
Construction on the Halifax street is hurting some businesses. To help soften the blow, the Canadian Federation of Independent Business is calling for a construction mitigation fund. Giuliana Grillo has the story.
CTV News
3 days ago
- Business
- CTV News
CFIB calls for lower property tax rates for small businesses in Atlantic Canada
The Halifax skyline is seen from Dartmouth, N.S., on June 30, 2022. (Andrea Jerrett/CTV Atlantic) The Canadian Federation of Independent Business is calling on local and provincial governments to reduce commercial property tax rates for small businesses in Atlantic Canada, saying they aren't being taxed fairly. According to a recent report from the CFIB, commercial property tax rates are typically more than double the residential rates, which it says has small businesses paying thousands of dollars more in property taxes. 'Small business confidence remains on shaky ground because of Canada-US trade tensions, lower consumer demand, and high costs,' said Duncan Robertson, CFIB's director of legislative affairs for Nova Scotia, in a news release. 'Municipalities need to provide improved fairness in how they set property tax rates. If they are serious about supporting small businesses, its time to show it.' Property tax gap by municipality Tax bill on a $372,500 property Tax Gap $ Multiplier X Residential $ Commercial $ St. John's 2.04 3.52 3,017 10,616 Charlottetown 2.19 2.31 6,221 14,379 HRM* 2.12 4.34 2,364 10,245 CBRM 3.13 2.61 7,240 18,989 Moncton 2.81 3.06 5,071 15,535 Fredericton 2.77 3.12 4,875 15,200 Author's calculations = from municipal tax rates. Municipal property tax rates taken from municipal websites. Note: HRM rates are averages of the area and tiered rates. $372,500 is the average of the Canadian Real Estate Association's National MLS Home Price Index for St. John's, Prince Edward Island, Nova Scotia, and New Brunswick in April 2025. Call to lower property tax rates The CFIB says more than 70 per cent of small business owners believe municipalities should make it a priority to limit property tax increases and close the gap between residential and commercial property tax ratees. 'This unfairness has a real impact on small businesses and in turn their customers with six in 10 small businesses having to increase prices to keep up with rising occupancy costs,' added Robertson. 'With municipalities increasing costs on small businesses while providing them with little improvement in services, small businesses have one clear ask, better value for their money.' The CFIB is calling on local and provincial governments to do the following: reduce commercial property tax rates for small businesses close the property tax gap between commercial and residential properties engage in sustainable spending practices that keep spending and tax levies in line with growth in population and inflation The findings of the report are based on 412 responses from a random sample of CFIB members between June 3 and June 9 of this year. The CFIB is Canada's largest association of small- and medium-sized businesses with 100,000 members, including more than 4,200 in Nova Scotia. More to come…
