As tariffs and economic pressures weigh on small businesses, the CFIB urges Canada’s premiers to prioritize policies that strengthen the small business sector.
With Canada’s premiers set to gather in Huntsville, small business owners across the country are looking to the Council of the Federation for bold leadership and swift action. The Canadian Federation of Independent Business (CFIB), representing 100,000 small and medium-sized enterprises, has issued an urgent appeal to provincial and territorial leaders—as well as Prime Minister Mark Carney—to prioritize small business concerns at the top of their meeting agenda.
Mounting trade tensions, unpredictable tariffs, and weakening consumer demand have left Canada’s entrepreneurs navigating a challenging and increasingly unsustainable environment. CFIB’s Executive Vice-President of Advocacy, Corinne Pohlmann, summed up the growing frustration: “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.”
According to preliminary findings from CFIB’s July 2025 “Your Voice” survey of over 1,300 respondents, many small businesses are struggling to stay afloat or scale back their growth plans in response to escalating tariffs and market uncertainty.
Coping strategies amid tariff turmoil
In the face of these headwinds, small business owners are being forced to make difficult choices. The CFIB survey reveals:
- 42% have increased prices to offset additional costs
- 37% are shifting focus to domestic markets
- 31% are absorbing tariff-related losses, impacting profitability
- 29% are delaying expansion plans due to financial strain
- 25% are exploring new markets beyond the U.S.
This economic climate is stalling innovation and productivity, which in turn drags down the broader Canadian economy. CFIB argues that small businesses are foundational to national economic health and need targeted support to survive and thrive.
A five-point policy blueprint for growth
To counteract these challenges, CFIB has put forward a clear set of policy recommendations. The organization hopes premiers will consider these as part of a broader national plan to improve competitiveness and foster growth:
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Lower the small business tax rate to 0%, with an increased threshold of $700,000 to support reinvestment and job creation.
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Involve SMEs in infrastructure planning, ensuring small firms benefit from public works spending and supply chain opportunities.
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Return federally collected tariff revenues to affected SMEs quickly and clarify the purpose and distribution of provincial tariff contingency funds.
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Advance internal trade reforms, cutting red tape between provinces to promote smoother economic flows.
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Support direct-to-consumer alcohol shipping, following Manitoba’s example, to open new domestic markets.
These proposals aim to not only ease current burdens but also establish a more resilient and productive small business environment going forward.
Building a more competitive Canada
CFIB’s senior policy analyst, SeoRhin Yoo, emphasized the long-term importance of prioritizing entrepreneurs. “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.”
As the Council of the Federation convenes, small business advocates and entrepreneurs alike are watching closely, hoping that their concerns will finally translate into coordinated policy changes. The need is clear: Canada’s economic future depends on the health of its smallest businesses. Whether expanding trade within the country, easing the tax burden, or boosting support for innovation, the time for action is now.
The CFIB continues to serve as a voice for independent businesses across the country. Their hope is that the premiers recognize this moment as a turning point—and respond with the urgency and clarity it deserves.
Learn more at cfib.ca.