Canadian small and medium-sized businesses are urging the federal government to prioritize tariff-related financial relief in its upcoming budget, according to a survey of 250 SME leaders by bookkeeping automation platform Dext. Seventy-seven percent said tariff relief should be a priority, while 64 percent felt Ottawa was not providing adequate support to businesses affected by trade tariffs.
The pressure is already changing business activity. Twenty-six percent of surveyed companies said they had reduced or stopped trade with U.S. partners, and 55 percent planned to adjust their supply chains. The Canadian Federation of Independent Business reports that more than 53,000 businesses are directly affected by U.S. tariffs, Canadian counter-tariffs or both.
Uncertainty is weighing on planning and growth. Seventy-one percent of respondents said the business climate felt less predictable than a year earlier, and 45 percent feared that unexpected cost increases could threaten their businesses. More than half said current conditions made long-term growth decisions impossible; 22 percent had delayed or canceled expansion plans.
Most respondents said they use financial forecasting and planning to manage uncertainty: 75 percent rely on these tools, while 9 percent said they do not use them. Approaches include creating multiple scenarios, updating plans as new information arrives, and forecasting at set intervals or when needed. Even so, only 54 percent felt their operations could withstand a sudden shock from rising tariff and inflation costs.
Joanne Modugno, Dext North America’s general manager, said small-business leaders were dealing with uncertainty and factors beyond their control, and argued they deserved support to move forward with confidence.
Sources: WWD.