According to a survey by the Canadian Federation of Independent Business (CFIB), small business confidence is at a record low in Canada, even lower than it was during the global financial crisis and the pandemic.
The CFIB’s Business Barometer long-term index fell nearly 25 points to 25, as confidence across all sectors felt the impacts of the current state of geopolitical and economic affairs, chiefly the tariffs with the United States and other trade partners.
“Small business owners are feeling pessimistic about their business’s perspectives for the next few months or even beyond,” Simon Gaudreault, CFIB’s chief economist and vice president of research, said in a release.
Small businesses will need to respond to sustain themselves during this period, with prices expected to rise by an average 3.7 percent, which will have a ripple effect for wage increases, hiring, and growth.
“It’s hard to make critical decisions for the long, medium, or short term when so much can change within a matter of hours,” Gaudreault said. “No one knows when the tariff war will end, and businesses are worried the worst is yet to come,” especially as product demand is also at an all-time low.
Agriculture, especially, is being impacted by the uncertainty of tariffs, as China has introduced 100 percent tariffs on canola oil, pork, and seafood, which is why CFIB is urging Canadians and the government to step up to support small business in whatever way they can, which they are honouring through various programs.
