POLL: Canadian exporters brace for revenue losses under proposed 50% US tariffs

CALGARY — Canadian small businesses that export to the United States are warning of steep revenue losses if Washington follows through with proposed 50% tariffs on some goods that comply with the Canada-United States-Mexico Agreement (CUSMA).A new Canadian Federation of Independent Business (CFIB) survey found 40% of Canadian exporters to the US sell products that would be affected by the tariffs.Among those businesses, 77% expect their revenues to decline if the tariffs take effect. More than one-third — 35% — anticipate losing at least half their revenue.“The small studio in Ontario shipping paintings to a gallery in New York, or a sawmill in BC shipping panels to a builder in Seattle is being walloped by the 50% tax threat,” CFIB president Dan Kelly said.“If the tariffs come into effect next week, they will cause massive dislocation for small businesses that rely on US clients and American buyers that rely on Canadian suppliers.”The proposed tariffs are scheduled to take effect August 19..CFIB demands Parliamentary oversight as CRA enforces unapproved tax measures .Kelly said many Canadian exporters built their businesses around the long-standing expectation that CUSMA-compliant goods would continue to enter the US tariff-free.“The prospect of losing sales, slashing prices, or having to pivot to new markets altogether, is generating a lot of small exporter anxiety in the lead-up to August 19,” he said.More than nine in ten Canadian exporters surveyed said they were concerned about the proposed tariffs, including 32% who described themselves as extremely concerned.Businesses selling machinery and equipment were among those most likely to report being affected. Other exposed sectors included wood, forestry and building products; plastics, polymers and packaging; agricultural, food and beverage products; and arts, jewellery and creative goods.“Few small firms can absorb a 50% tariff, and few can pass that cost on to customers while staying competitive,” Kelly said.“All eyes are on our negotiations with Washington as the stakes are very high for Canadian SMEs.”The CFIB survey was conducted online from July 28 to August 6 and received responses from approximately 1,833 business owners.

POLL: Canadian exporters brace for revenue losses under proposed 50% US tariffs

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