One year after the U.S. sparked a global trade war with repeated rounds of tariffs, more than half of Canada’s small businesses say the U.S. is no longer a reliable trading partner, according to the latest data.

A report released Wednesday by the Canadian Federation of Independent Business (CFIB) shows that 52 per cent of business owners surveyed agreed with this sentiment.

Three-quarters of small businesses that participated, or 75 per cent, said tariffs have strained their relationship with U.S. partners or clients, which is up from 49 per cent a year ago.

U.S. President Donald Trump last year imposed tariffs on goods imported from virtually all countries. The unpredictable nature of Trump’s foreign relations and trade policies has led to uncertainty for consumers, businesses and governments alike.

“Small businesses have faced massive uncertainty since the trade battle began last year,” Dan Kelly, CFIB president, said in the report.

“Small business owners have been dealing with the whiplash of trying to keep up with sudden changes and threats, including many that don’t happen or are revised within hours. With CUSMA coming up for review in the months ahead, the stakes are even higher.”

The CFIB’s report was based on data from two surveys conducted in December 2025 and February, and featured 1,379 and 1,663 participants, respectively. The organization says Ottawa needs to do more to help small businesses impacted by tariffs.

“Small business owners are telling us they feel abandoned in dealing with tariff costs,” Michelle Auger, CFIB director of trade and marketplace competitiveness, said in the report.

“With fewer people starting businesses, we can’t afford to overlook the ones we have. Ottawa needs to step up and find better ways to help.”

Trending Now

• Why most Canadians will keep daylight saving time changes as B.C. stops

• Muslim mothers barred from volunteering at Quebec schools over hijabs

The manufacturing sector has been most impacted by tariffs in Canada, including steel and aluminum, lumber, automobiles and auto parts.

Most other products and services are exempt from tariffs so long as they conform to the terms of the current Canada-United States-Mexico Agreement (CUSMA), but that’s up for review later this year.

Twenty-seven per cent of businesses are hurt by tariffs on non-CUSMA-compliant goods, according to the CFIB, and 68 per cent of Canadian small business owners participating in the surveys report being negatively affected by U.S. tariffs.

The federal and provincial governments, as well as business owners large and small, have been working to diversify trading partners to avoid immediate tariff impacts and to mitigate future trade shocks.

Prime Minister Mark Carney recently wrapped up trips to China and India and is currently in Australia to help establish these renewed trade relationships.

Tariffs have essentially stunted business growth in Canada, with GDP rising less than two per cent in 2025. Annualized economic growth of two per cent has been the standard in Canada for each of the previous two years.

Multiple rounds of job cuts in Canada’s impacted sectors have also been a direct result of tariffs, with General Motors and Algoma Steel being a couple of the most recent examples.

&copy 2026 Global News, a division of Corus Entertainment Inc.