The US-Canada trade bout has been hurting small and mid-sized businesses, according to the “Monthly Business Barometer” to be published by the Canadian Federation of Independent Business.
The report indicated that 62 percent of respondents have suffered from the ongoing war. The manufacturing, wholesale, and transportation sectors have been the most affected.
“To say that small businesses are feeling worried is an understatement. No one likes to be strung along, small business least of all. The everchanging news developments and the constant on-again, off-again tariff threats are exhausting and just very bad for the economy, investment and long-term business planning,” said Simon Gaudreault, CFIB's chief economist and vice-president of research, in a statement.
The CFIB called for the federal government to recall Parliament immediately to rescind the 19 percent tax increase and pass laws to eliminate taxes from carbon tax rebates. The federation also urged the government to pass legislation to bump the lifetime capital gains exemption threshold to $1.25 million and to maintain the promised Canadian Entrepreneurs' Incentive.
Moreover, the CFIB urged Ottawa to ensure that funds from retaliatory tariffs revert to impacted businesses immediately.
“We cannot wait until Parliament is back on March 24 to sort out the current mess and allow the ongoing uncertainty to drag on for any longer,” said Corinne Pohlmann, CFIB’s executive vice president of advocacy, in a statement. “Ottawa owes it to small businesses to provide some clarity and assurance in these turbulent times. The expansion of the EI Work-Sharing Program, announced as part of the federal support measures last Friday, could help businesses avoid layoffs during the uncertain times. But we're not so sure about the other supports. Small businesses need help keeping doors open, not taking on more debt through loans.”
Pohlmann suggested the government help offset high shipping costs for small firms seeking a new export market or a non-US supplier.
The “Monthly Business Barometer” obtained feedback on March 5-7 from 1,064 responses to a controlled-access web survey. The respondents were from a stratified random sample of CFIB members.