Agri-businesses across Canada are feeling the impact of tariffs, prompting calls for immediate financial assistance and policy changes.
Like many of their small business counterparts, Canadian agri-businesses operating across the border are warning that prolonged trade tensions could threaten their financial stability, according to a by the Canadian Federation of Independent Business (CFIB) that was released last week.
The CFIB survey found that 18% of small exporters and 11% of importers affected by the Canada-U.S. trade war believe their businesses would no longer be financially viable if the conflict continues for three months or longer. The impact is particularly significant among businesses directly exposed to the latest tariffs and counter-tariffs.
Nearly half of small exporters, or 46%, reported that their products have been directly affected by the newest tariffs and agriculture is no exception. A comparable 49% of small importers said they are facing similar impacts. Manufacturing, wholesale, retail and construction businesses are among the sectors experiencing the greatest pressure.
Janna Streef with Integrated Customs Services Ltd says her company has been dealing with the surtaxes going into the USA as well as coming into Canada since tarriffs began. Integrated Customs Services Ltd has diverse clients from agriculture equipment to fresh produce clients. "Ag clients are about 55% of my business," Streef explained to Farms.com "We have companies that are very much affected by the tarriffs."
“We cannot allow small business owners to become cannon fodder in the trade war. 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,” said Dan Kelly, CFIB president.
“While a majority small firms are generally supportive of the decision to walk away from trade talks and impose counter-tariffs, the burden falls especially heavily on some segments of Canada’s independent business community. Nine in ten small firms believe counter-tariff revenue should be used to support the businesses hit hard by the trade war.”
“Government support programs to date are not set up to deal with tens of thousands of small businesses, particularly as counter-tariffs begin to hit next week,” Kelly added. “We need a simple direct support program to help businesses on the U.S. and Canadian tariff lists in addition to broad-based tax relief to help all small firms that will be hurt by the trade war.”
The CFIB is calling for three key measures. Its proposals include a Small Business Tariff Relief program providing up to $70,000 in initial assistance to eligible businesses that can demonstrate the direct financial impact of tariffs.
It also wants an SME Desk for Tariff Remissions to accelerate decisions on removing Canadian counter-tariffs when industries face serious harm or suitable alternatives are unavailable.
In addition, the organisation is urging the federal government to reduce the small business corporate tax rate from 9% to 6%, retroactive to January 1, 2026, while raising the Small Business Deduction threshold from $500,000 to $700,000.
“Small businesses are being squeezed from multiple directions, and both the new tariffs and counter-tariffs will add a significant burden at a time when we’re already grappling with weak economic growth, sluggish consumer demand and some of the highest operating costs we have ever seen,” said Jasmin Guénette, CFIB vice-president of national affairs.
“We’re talking about people who are being asked to put their entire livelihoods on the line so that Canada can push back. 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,” Guénette added.
Photo Credit: canadian-federation-of-independent-business