Latest news with #Gaudreault
Yahoo
20-03-2025
- Business
- Yahoo
Canada's small business confidence plunges to record low
Confidence among small businesses plummeted to an all-time low in March, with sentiment lower now than anytime during the pandemic, the 2008 financial crisis or in the aftermath of 9/11, according to the Canadian Federation of Independent Business (CFIB). The CFIB's Business Barometer long-term index fell 24.8 points to 25 as confidence across all sectors fell. 'Small business owners are feeling pessimistic about their business's perspectives for the next few months or even beyond,' Simon Gaudreault, CFIB's chief economist and vice-president of research, said in a release. To recoup losses from Canada's trade war with the United States, small businesses are planning to raise prices by an average of 3.7 per cent, cut wage increases and consider layoffs. 'It's hard to make critical decisions for the long, medium or short term when so much can change within a matter of hours,' Gaudreault said. 'No one knows when the tariff war will end, and businesses are worried the worst is yet to come.' Product demand has also reached a new low, with 59 per cent of small businesses impacted by weak demand, which is more than the pandemic high of 53 per cent. The agriculture sector arguably faces the biggest challenge. On top of U.S. tariffs, the sector is dealing with 100 per cent Chinese tariffs on canola oil, pork and seafood, which came into effect Thursday. 'Chinese tariffs are coming at the worst possible time given the ongoing uncertainty in our trading relationship with the United States,' Gaudreault said. Corinne Pohlmann, executive vice-president of advocacy at CFIB, said small businesses 'need all the help they can get' to weather this storm. 'Now is the time to show strong support to small businesses,' she said. The CFIB is calling for the federal government to make carbon tax rebates for small businesses tax free, increase the lifetime capital gains exemption and create support systems for those hurt by tariffs. Two weeks ago, the federal government announced $6 billion in aid for businesses hurt by tariffs and $1 billion in financing for the agricultural sector. In Ontario, Premier Doug Ford pledged to defer $10 billion in business taxes for six months and offer $3 billion in payroll tax relief. Other provinces are offering relief as well. For example, Manitoba is also deferring provincial sales taxes and payroll taxes for three months, while New Brunswick is allocating $4 million to support its seafood industry, $5 million for small businesses and $40 million to help the long-term sustainability of its large exporters. At the front lines of the trade war: what's exempt, what isn't Business groups say trade uncertainty has done damage Small business investment set to shrink in blow to productivity Quebec is offering funds to help businesses diversify away from the U.S. and provide loans up to $50 million for local export companies in the manufacturing and primary sectors, and Prince Edward Island has begun a financial relief program for affected businesses, offering up to $500,000 over six years. • Email: bcousins@
Yahoo
11-03-2025
- Business
- Yahoo
Nearly two-thirds of small biz impacted by trade war: Survey
In trade wars, there are no winners. Especially when it comes to a small business. A survey by the Canadian Federation of Independent Business (CFIB) reveals nearly two-thirds of small firms are being negatively impacted by the uncertainty of the U.S-Canada tariff war. Based on 1,064 responses earlier this month, the survey revealed 62% of small companies are taking some sort of financial hit, about a quarter indicate no impact yet, while 12% are unsure how it will affect them. Tariffs threatened and imposed by U.S. President Donald Trump on Canadian goods and reciprocal measures by the Liberal government in Ottawa — as well as provincial actions — will hurt the economy across the country, said Simon Gaudreault, CFIB chief economist and vice president of research. 'It will have a negative impact on the Canadian economy, whether you are in Toronto or any other part of the country,' he said. 'We are too interconnected with the U.S.' In Toronto, a large segment of businesses rely on financial services, which Gaudreault calls a barometer of the overall economy. 'You're going to have a lot of investments that are not going to be made,' he said. 'You're going to have a lot things that are going to be put on pause. Jobs that maybe will be lost or new hires won't be made. All of this is going to impact our economy.' Gaudreault said a continuing trade war will plunge the Canadian economy into tougher times. 'Overall, for most businesses, this is going to be a very negative result. Most likely, we're going to see a recession in Canada if the trade war goes on.' While it is early days, Gaudreault said a recent CFIB questionnaire found very few small businesses have decided to close up shop or relocate as a vast majority of entrepreneurs look to pivot away from the U.S. market or American products. 'For a lot of businesses right now, they've been able to mitigate (the effects of tariffs),' he said. 'Certainly (they) have put a lot of things on hold, but they are not yet at a stage where the businesses are closing tomorrow or they're firing or laying off all of their workers.' Giles Gherson, president and CEO of Toronto Region Board of Trade, said in an emailed statement that the 'economic storm is still brewing' after Trump last week signed off on 25% tariffs on Canadian goods entering the U.S. which are not protected by the Canada-United States-Mexico Agreement. 'These measures will have punishing consequences for businesses, workers, and consumers on both sides of the border. Governments at all levels must now move swiftly and vigorously with immediate temporary measures to safeguard businesses directly affected by the U.S. tariffs and to buttress the resilience and self-reliance of our economy for the future.' Gherson added that the tariff threat has shown how complacent Canada has become on the country's own productivity. 'We need to go full-bore on economic growth, retool in a way we haven't since the post-war era.' Poilievre wants to impose 50% metal tariffs on U.S. after latest Trump threat Canada's dairy industry says tariffs less scary than threats to supply management Ontario eyes more trade with countries overseas in wake of U.S. tariffs
