August 26, 2026
The Canadian Federation of Independent Business (CFIB) is calling on the federal government to simplify and expand tariff relief for Canadian small businesses, warning that current support programs may be too complex or restrictive for many companies affected by the Canada-U.S. trade dispute.
CFIB President Dan Kelly said small businesses need straightforward financial relief as tariffs increase costs, disrupt supply chains and create uncertainty.
According to CFIB, the federal Regional Tariff Response Initiative (RTRI) has excluded many smaller businesses through eligibility requirements such as minimum revenue or employee thresholds.
Kelly argues that tariff relief should be accessible to businesses of all sizes, including companies that use, import or distribute U.S. products. CFIB is advocating for one simplified small business support program, ideally administered through the Canada Revenue Agency.
The organization also raised concerns that loan-based programs may offer limited value to businesses already facing financial pressure.
CFIB says Canadian retaliatory tariffs could create additional challenges for businesses that have limited alternatives to U.S. suppliers.
Beyond companies directly involved in cross-border trade, the organization expects the trade dispute to affect thousands of businesses indirectly through higher input costs, weaker consumer demand and continued economic uncertainty.
To provide broader relief, CFIB is urging Ottawa to immediately reduce the small business tax rate, retroactive to January 1, 2026. The organization argues that a tax reduction would provide more direct support to Canadian entrepreneurs while the government develops longer-term responses to tariff pressures.
CFIB is also asking the government to extend the suspension of the federal excise tax on gasoline and diesel beyond its scheduled September 7 expiration, citing concerns about rising fuel costs as retaliatory tariffs take effect.
Kelly acknowledged the difficulty of developing effective support programs quickly and said CFIB is prepared to work with the federal government and parliamentarians to improve tariff relief measures.
For construction companies and other small and mid-sized businesses, the debate highlights the broader impact trade uncertainty can have on material costs, supply chains, operating expenses and investment decisions.
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