Canada's counter-tariffs are hurting small businesses. Even so, many still support them

Sophia Harris · CBC News

· Posted: Mar 16, 2025 4:00 AM EDT | Last Updated: 10 minutes ago

Troyhann Santos checks the national government's latest database of counter-tariffs and makes a crushing discovery. Starting immediately, she'll person to wage a 25 per cent tariff connected astir merchandise coming into her lacrosse instrumentality store, Lax Shack, successful Pickering, Ont.

"To get deed with thing similar this is terrifying," said Santos. "It's a unspeakable gut punch."

Billions of dollars and thousands of jobs are connected the enactment arsenic Canadian businesses grapple with U.S. President Trump's tariffs, the bulk of which are acceptable to instrumentality effect connected April 2. 

Now, immoderate businesses unaffected by Trump's tariffs are learning that they won't look unscathed from the commercialized war, due to the fact that goods they import from the U.S. are getting deed with Canada's counter-tariffs. 

The occupation is particularly concerning for tiny businesses, which often don't person heavy pockets to assistance them upwind the storm. 

Last week, the national authorities imposed its archetypal circular of 25 per cent retaliatory tariffs connected $30 cardinal worthy of American goods, specified arsenic galore types of nutrient and appliances. 

On Thursday, aft Trump imposed tariffs connected alloy and aluminum exports, Canada deed backmost with much tariffs, this clip on $29.8 cardinal worthy of U.S. goods. Targets see U.S. steel, aluminum, immoderate electronics and — unfortunately for Santos — sports equipment.

Almost each of the lacrosse cogwheel she sells, including sticks, balls and nets, is imported from the U.S.

"We person shipments that are coming successful connected a regular basis, truthful this volition impact america immediately," said Santos. "We're going to person to summation our prices to bespeak that 25 per cent increase."

She's not the lone tiny concern caught successful the crossfire.

Cluck Clucks, a tiny but increasing accelerated nutrient concatenation successful the Toronto area, says the counter-tariffs could wounded its enlargement plans. 

Each Cluck Clucks requires betwixt six and 8 heavy fryers to service up its specialty: fried chicken. 

The fryers, which outgo up to $27,000 each are made of alloy and shipped from the U.S. Because Canada's counter-tariffs see cooking appliances made of steel, Cluck Clucks believes it volition present wage 25 per cent much for each caller purchase.

"We're expecting our costs to spell up significantly," said Raza Hashim, Cluck Clucks' CEO. "So, overall, conscionable not a bully concern for us."

He adds that Canada doesn't manufacture heavy fryers, truthful helium can't lick the occupation by switching to a home supplier.

Small businesses enactment counter-tariffs

The Canadian Federation of Independent Business (CFIB) says galore tiny businesses whitethorn beryllium affected by the counter-tariffs. The federation surveyed 2,500 autarkic businesses past period and astir fractional (47 per cent) said they import goods from the U.S.

"They are ace concerned," said Simon Gaudreault, CFIB's main economist. "We're talking present astir 25 per cent counter-tariffs that tin adhd a important outgo unit connected businesses. Some of them run connected precise bladed margins."

Gaudreault says owners tin rise prices to screen the added costs, but doing truthful could marque them little competitive. 

"So they're benignant of stuck betwixt a stone and a hard place."

WATCH | Canada's counter-tariffs wounded tiny businesses, but galore inactive enactment them:

The CFIB poll besides revealed thing that amazed Gaudreault: Despite concerns implicit counter-tariffs, three-quarters of businesses surveyed said they enactment Canada's determination to enforce them. 

"I deliberation it comes from a consciousness that thing needs to beryllium done … not to conscionable prevarication down there, and let's fto the U.S. medication bash immoderate it is that they want," said Gaudreault. 

Although Cluck Clucks volition present apt look higher costs each clip it opens a caller location, the edifice is connected the broadside of counter-tariffs.

"It is for the bully of the full country," said Hashim astatine a Cluck Clucks successful Pickering. "As a citizen, arsenic a naturalized citizen, we volition wound the slug for our adopted country." 

But backmost astatine the lacrosse store, Santos reveals that she's connected the obstruction astir the counter-tariffs, aft learning that they volition impact astir goods sold successful her store. 

"I privation Canada to basal up for themselves and I'm a arrogant Canadian," she said.

"But connected the different broadside of it, these increases successful prices besides wounded us."