Posthaste: Small exporters say they need Canada’s trade war to end ASAP

Many small Canadian exporters will be in financial trouble if the trade war with the United States extends into the holiday season, with Canada set to impose $27.6 billion in counter-tariffs on dozens of U.S. imports, including dairy, appliances and electronics.

The Canadian Federation of Independent Business (CFIB) said most of its members are in favour of the government measures against the U.S., but many won’t last long if the tariffs and counter-tariffs remain in place for an extended period.

Nearly 20 per cent of small exporters and 11 per cent of small importers will stop being financially viable if the trade war lasts three months or more, the association said.

“We cannot allow small-business owners to become cannon fodder in the trade war,” CFIB president Dan Kelly said in a news release. “If we’re going to retaliate, then we need to make sure government supports protect the small businesses being put on the front lines of the trade war.”

Canada’s trade war with the U.S. has sharply escalated in recent weeks, with both countries accusing the other of walking away from trade negotiations after the Canada-U.S.-Mexico Agreement (CUSMA) was put up for review.

Since then, U.S. President Donald Trump has unveiled up to 50 per cent tariffs on several Canadian products, including electronics, furniture, milk, alcohol and hockey equipment. Canada’s retaliatory tariffs take effect just after midnight on Tuesday.

Canadian businesses are already feeling the heat, with 26 per cent of owners saying the U.S. tariffs have had major negative impacts on their operations, while 28 per cent say the countermeasures will have similar consequences.

The CFIB is urging the federal government to impose a Small Business Tariff Relief (SBTR) program, which would allow up to $70,000 in tariff relief. It’s also pushing for a small-business tax cut and a mechanism to speed up changes to counter-tariffs if they have a major negative impact on Canadian industries.

“We’re talking about people who are being asked to put their entire livelihoods on the line so that Canada can push back,” Jasmin Guénette, CFIB vice-president of national affairs, said. “The government needs to move with urgency and get relief measures in place as they continue to work towards a stable, long-lasting trade deal.”

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Canada’s economy shed 42,0000 jobs in August, but its unemployment rate remained unchanged for the month at 6.4 per cent.

Employment declines were spread across several industries, including the public sector, natural resources and utilities. Manufacturing was the only sector to record significant gains in the month, adding 22,000 jobs.