Almost half of Canada's small exporters, or 46%, and importers, or 49%, report that their products are directly impacted by the recent US tariffs and Canadian counter-tariffs, according to a new survey from the Canadian Federation of Independent Business (CFIB) published on Thursday.
Sectors such as manufacturing, wholesale, retail, and construction are among the most affected, said CFIB.
If the trade war continues, the consequences could be severe, added CFIB. About 18% of affected small exporters and 11% of importers report they would become financially unsustainable if tariffs remain in effect for three months or more.
The CFIB said that small businesses are already under pressure from slow economic growth, weak consumer spending and high operating costs. It also found that nine out of 10 small businesses want revenue from counter-tariffs to be used to assist companies most affected by the trade measures.