Nearly half of small importers and exporters were hit by the tariffs
The federation representing independent businesses in Canada quantified the problem: 46% of small exporters and 49% of small importers have products directly affected by US tariffs and the Canadian response. And some of them cannot survive three months like this.
What did the survey find?
Among the affected exporting companies, 18% said they would cease to be financially viable if the trade war lasts more than three months; among importing companies, the figure was 11%. The hardest-hit sectors are manufacturing, wholesale, retail, and construction—precisely where a large part of the Latino community works and runs businesses.
There is also an almost unanimous demand: 90% of small businesses believe that what the government collects from counter-tariffs should be returned to the affected companies.
“We cannot allow them to become cannon fodder.”
The quote comes from Dan Kelly, president of the Canadian Federation of Independent Businesses (CFIB): “We cannot allow small business owners to become cannon fodder in the trade war.” His vice president for domestic affairs, Jasmin Guénette, put it in more operational terms: “Small businesses are being squeezed from multiple directions,” and called for the government to “act urgently.”
The organization proposed three concrete things: a tariff relief program of up to $70,000 per company, a dedicated window to quickly resolve exemption requests, and tax relief, with the corporate tax rate for small businesses dropping from 9% to 6% retroactively to January 1, 2026.
Will it be noticeable in the final price?
Less than many fear, at least for now. Economist Colin Mang of McMaster University explains that Canada deliberately targeted products with domestic alternatives, so “the typical Canadian family won’t notice much of a difference.” In previous rounds of this same dispute, retailers absorbed around 75% of the cost and passed on only a quarter to the customer.
The case of a furniture store in Manitoba illustrates the decision hundreds of businesses are making this week. JS Furniture relies on U.S. products for 60% of its business and is facing tariffs of 50% on large furniture and 25% on small pieces. Its general manager, Brian Kyca, said the company will absorb the cost for orders already in progress, rather than passing it on to customers who purchased before this situation began.
What’s available for those who own their own business
The federal package announced on August 25 includes a program designed for small businesses: the Regional Tariff Response Initiative, which launched in September with $1.5 billion and raised the maximum grant per company from $1 million to $3 million. It is administered through the country’s seven regional development agencies.
For Latino entrepreneurs with a store, workshop, or service company that imports supplies from the United States, there’s money there that doesn’t need to be repaid. It’s worth finding out which regional agency serves your province before assuming these programs are only for large businesses.
Editorial Staff Mauricio Navas Talero LJI Reporter
