Canadian agri-businesses trading across the US border are warning that a prolonged trade war could put them out of business, according to a survey by the Canadian Federation of Independent Business (CFIB) released last week. Eighteen percent of small exporters and 11 percent of importers affected by the dispute said they would no longer be financially viable if it lasts three months or more.

Nearly half of small exporters, 46 percent, and 49 percent of importers said their products are directly affected by the newest tariffs and counter-tariffs; manufacturing, wholesale, retail and construction are under the greatest pressure, and agriculture is not spared. CFIB's latest estimate, issued on 10 September, is that 53,112 businesses are directly hit by US tariffs, Canadian counter-tariffs or both: 13,160 exporters and 45,414 importers.

Janna Streef of Integrated Customs Services Ltd, whose clients range from farm equipment to fresh produce, told Farms.com that agricultural clients make up about 55 percent of her business and that surtaxes have been running in both directions since the tariffs began. Canadian agriculture, whether equipment or fresh food, "will suffer from the market uncertainty," she said, urging the sector to diversify its markets.

"We cannot allow small business owners to become cannon fodder in the trade war," said CFIB president Dan Kelly. The federation wants a Small Business Tariff Relief programme paying up to C$70,000 to firms that can show direct tariff losses, an SME desk to speed decisions on remitting counter-tariffs where they cause serious harm, and a cut in the small-business corporate tax rate from 9 to 6 percent, backdated to 1 January 2026, with the deduction threshold raised from C$500,000 to C$700,000.

Nine in ten small firms, CFIB says, believe counter-tariff revenue should go to the businesses the trade war hurts. Jasmin Guenette, the federation's vice-president of national affairs, said owners are being asked to put their livelihoods on the line so Canada can push back, and the government needs to move with urgency on relief while it works toward a lasting deal.

Photo: Canadian Federation of Independent Business

Source: Farms.com