CFIB Calls for Small Business Focus in CUSMA Talks
TORONTO, June 30, 2026 – As CUSMA negotiations enter their next phase, the Canadian Federation of Independent Business (CFIB) is urging the federal government to prioritize small business concerns. CFIB president Dan Kelly emphasized that protecting Canada's existing CUSMA exemptions must remain the top trade priority for small businesses amid ongoing uncertainty.
“Small business owners are frustrated. The ongoing uncertainty around tariffs and trade has delayed real decisions on investment and growth. Protecting Canada’s existing CUSMA exemptions must remain government’s top priority,” said Kelly. He noted that while tariff-free CUSMA access has helped, small businesses face major pain points including sectoral tariffs on steel and aluminum and compliance challenges for small volume exporters.
Survey Shows Support for Deliberate Negotiations
According to CFIB’s latest research, two-thirds (64%) of small businesses support taking the necessary time to secure the best possible terms for a renewed or renegotiated CUSMA. Only 16% prefer a quicker but potentially less favourable agreement. The findings come from the Your Voice-June 2026 survey, conducted since June 4, 2026, with 932 respondents, yielding a margin of error of ±3.2%.
Canada–U.S. business relationships have weakened significantly during the trade war. In April 2026, 75% of SMEs reported that the tariff fight has strained their relationships with U.S. partners or clients, up sharply from 49% in March 2025. Only 40% of small firms now view the U.S. as a reliable trading partner.
Diversification Efforts Underway
Nearly half (48%) of SMEs trading with the U.S. have shifted to non-U.S. suppliers or customers. Among those, nearly three-quarters are pivoting to domestic markets. Beyond Canada, Asia (40%) and EU countries (39%) are the top alternatives, though high shipping costs, border delays, and complex customs procedures limit broader trade diversification.
“While business owners are doing what they can to diversify their trade, we’re never going to be able to entirely replace the 340-million-person market that exists right along our border,” Kelly added. “That’s why it’s so important to get this right and get a deal that business owners are confident will hold for years to come.”
Recommendations for Negotiators
As talks continue, CFIB recommends that negotiators seek common ground for improvement, including making CUSMA more accessible to small business owners, streamlining customs rules at the border, and clarifying rules of origin. Corinne Pohlmann, CFIB executive vice-president of advocacy, highlighted the challenges small firms face.
“As negotiators look ahead to the next version of the agreement, they need to understand it’s not an easy process for small businesses to navigate. Unclear rules of origin, and high compliance and administrative costs mean some small firms are forced to weigh paying tariffs instead of using CUSMA,” Pohlmann said. “We can do better. Ottawa must ensure that small business voices are included in trade negotiations and secure a deal that is clear, accessible and works for businesses of every size.”
