Small businesses caught in the crossfire
As Canada rolls out new tariffs in its ongoing trade dispute, experts say the businesses feeling the sharpest pain won't be big multinational players, it'll be small and medium-sized enterprises across the country.
According to trade analysts, larger corporations typically have the resources, supply chain flexibility, and negotiating power to absorb or reroute around new tariff costs. Small businesses, by contrast, often operate on thin margins with limited ability to shift suppliers or renegotiate contracts on short notice.
Why consumers may barely notice
One of the more striking points from experts is that individual shoppers are unlikely to see much of a direct hit. Instead, the burden lands disproportionately on the businesses that import goods, materials, or components affected by the new measures. Some have described smaller firms as essentially "cannon fodder" in a trade war being fought at a much higher level between national governments.
That means a small manufacturer, importer, or specialty retailer could see costs climb significantly, even as the average consumer's grocery bill or shopping receipt stays relatively unchanged, at least in the short term.
The squeeze on already stretched businesses
For many small business owners, this comes at a difficult time. Years of inflation, rising interest rates, and higher operating costs have already tested the resilience of Canada's small business sector. Adding new tariff-related expenses on top of that could force some owners to raise prices, cut costs elsewhere, or in worst-case scenarios, scale back operations altogether.
Trade groups representing small and medium-sized enterprises have long argued that these businesses need more support and clearer guidance when broader trade policy shifts happen, since they often lack the in-house legal and logistics teams that larger firms rely on to navigate new rules quickly.
What comes next
The federal government has framed the tariffs as a necessary response in the broader trade dispute, but the question of who ultimately absorbs the cost, businesses, consumers, or some combination of both, remains a central concern for economists watching the fallout.
For now, experts say small business owners across Canada should brace for added costs and start reviewing their supply chains and pricing strategies, since relief on the trade front doesn't appear imminent.
Source: CBC News
